3.2 In addition, you are asked to apply rules, termination rights and default notices in the following situations and advise a business about what action they should take and what would happen as a result:

A customer has an HP agreement for a total price of 7,000. This is made up of a deposit of 1840 and 24 monthly payments of 215. The company receives a letter from the customer saying he has lost his job and wants to terminate the agreement. What would the customer need to pay in each case?

A) After having paid three instalments and the fourth is not yet due

B) After paying four instalments and the fifth and sixth are still due

C) After paying 12 instalments and before the 13th payment is due but the goods purchased have been damaged.

D) If the customer does not terminate the agreement but does not make any more payments after the eighth instalment, what action can the company take?

To earn the full score a student should cover all the following:

Rules of credit, termination rights and default notices - relevant case law and contract law; relevant statutory provisions, e.g., Consumer Credit Act; consumer credit licensing requirements, duties of the lender and borrowers, rights of lenders and borrowers. Remedies for default. Application of the rules re agreement, management, termination, early repayment, early repayment charges, defaults etc.