We assisted a client with a consumer credit issue concerning a hire purchase agreement for a vehicle. Our client approached Govanhill Law Centre as the Sheriff Court in Glasgow had granted a decree for the repossession of his vehicle and a payment order for the outstanding balance remaining on the credit agreement. A second hearing was scheduled to consider a Time to Pay application that was submitted by our client in a timely manner but was not considered at the first instance. Our client wanted to retain his vehicle and resume monthly repayments.
Given that our client still had the vehicle in his possession and no Time to Pay Order or Time to Pay Direction had previously been granted we applied for a Time Order under section 129 of the Consumer Credit Act 1974 (1974 Act) to request more time to pay the credit agreement by way of sustainable instalments. In conjunction to the Time Order application an order in terms of section 135 of the 1974 Act was sought to suspend the repossession of the vehicle subject to repayments being made.
We emphasised that this client had maintained his monthly payments for a substantial period of the hire purchase agreement. We noted that the arrears accrued due to financial difficulties caused by the economic impact of our client’s employment being terminated during the Covid-19 pandemic. We submitted that the client had secured new employment and his financial situation had improved.
Following the applications being lodged, the creditor accepted our proposed Time Order and subsequently agreed to the repossession of the vehicle being suspended on the basis that our client maintains the agreed upon instalments. Our client was satisfied with this outcome and was happy to commence his monthly instalments.
When court action is raised regarding a credit agreement regulated by the 1974 Act applying for a Time Order as opposed to a Time to Pay Order under the Debtors (Scotland) Act 1987 is especially beneficial in circumstances where a creditor is threatening to recover the item purchased under the credit agreement. A Time Order, if granted, will not only allow an individual more time to pay the credit agreement but it can also prevent the repossession of the item bought under the credit agreement on the condition that the individual continues to pay the agreed upon instalments.