Personal contract hire – what are your rights?

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At Rosedale Leasing, we believe in total transparency when it comes to what products and services we offer to our valued clients. As part of this, we feel that is very important that customers are fully aware of their rights when they are entering – or planning to enter into – any leasing contract.

As personal contract hire agreements are usually agreed on-line or over the phone with agreements sent electronically, understanding your rights is crucial before making any important decision about entering into a personal contract hire agreement.

We explain compliance, your rights and how the Consumer Credit Act 1974 affects you!

Personal contract hire – what are your rights?

Compliance and Your Rights

Personal contract hire is an agreement that is regulated by the Consumer Credit Act 1974, despite the fact that there is no option to purchase the vehicle at the end of the term; technically, it is a hire option.

How does the Consumer Credit Act 1974 affect you?

The Consumer Credit Act 1974 outlines a consumer hire agreement as a contract made by an individual, termed as the ‘hirer’, for the purpose of contract hiring of vehicles, subject to the following:

The hirer has the right to cancel or withdraw from the personal contract agreement for a period of 14 days – this relates to the Distance Marketing Regulations 2004 that regulates non face-to-face distance selling that is not conducted on trade premises.

What is the 14 day cooling off period?

The 14 day cooling off period starts on the day after the agreement is made – this is determined by the date on which the contract hire company sign the agreement, not the date the hirer signs.

If you do wish to exercise your cancellation, you can do this by writing to the contract hire company during the cooling off period, stating that you wish to cancel the agreement. If you decide to do this, you will be entitled to a refund of any monies paid to the contract hire company by you (or by any other person on your behalf) less a charge for any service that may have been provided to you under the agreement at your request, before the end of the cancellation period.

It is important to note that if you do not cancel during the 14 day cancellation period, the contract hire agreement will remain in place for its full term as per the agreed terms and conditions.

Personal contract hire – what are your rights?

Like we said earlier, transparency is key – if you are unsure about any of the issues that we have covered, feel free to ask any one of our friendly and expert team.

We aren’t only on the internet, we are also just a telephone call away on 0845 148 3012!

Trust us, we’re the experts

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