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NSW Are Flexirent Contracts Enforceable at Law?

Discussion in 'Debt and Bankruptcy Law Forum' started by Jason Penley, 28 September 2014.

  1. Jason Penley

    Jason Penley Member

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    I signed a Flexirent contract in 2008 (computer purchase) and shortly thereafter fell ill and my business collapsed. When I was unable to meet the repayments, Flexirent passed my account over to a debt collection agency Pioneer Credit. Pioneer (the debt collectors) have been on my case ever since trying to get me to come to some agreement for the outstanding debt amount. They claim that I now owe them, with interest, an amount approaching $5K, for what was originally a $2K purchase (through Flexirent).

    It is very strange that in all this time Pioneer Credit has made no attempt to take this matter to court and obtain a judgement debt against me. This makes me wonder about their legal position and thus I am asking the question. Is this debt with Pioneer Credit enforceable? I have been able to ascertain that Pioneer Credit purchased the debt from Flexirent, sometime in 2010.
     
  2. Sarah J

    Sarah J Well-Known Member

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    Flexirent contracts are legal. In many hire-purchase agreements, in the case of default, interest and penalties end up making the balance must more than the actual value of the item. Therefore, it is essential to read the terms and conditions of a hire-purchase agreement. Was this all explained to you are the point of sale?

    Flexirent is able to sell the debt onwards to a debt collection company who has no obligation to take the debt to court for a recovery order. It may be the case that the debt collection company is happy to keep piling on the interest and eventually seek recovery in court.

    I would suggest coming to some sort of payment arrangement with the collections agent or flexirent. If you are disputing the debt, contact the NSW Department of Fair Trading (complaints between consumers and business/Flexirent) or the Financial Ombudsman Services (complaints between consumers and financial institutions/debt collection agency).
     
  3. Jason Penley

    Jason Penley Member

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    Hi Sarah J

    I cannot remember what info was disclosed to me at POS, as it was back in 2007/8. I have made an offer to Pioneer Credit and they are considering it. The response you have given to my question was more or less what I expected, but I though I would ask, because PC has not pursued legal action for recovery. As you have indicated, they might be waiting for the debt to reach a sum that would make it worthwhile for them to get a judgement against me.

    Thanks for your reply....much appreciated.
     
    Sarah J likes this.
  4. Sarah J

    Sarah J Well-Known Member

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    Good luck with it all and let us know how it turns out.
     
  5. Jason Penley

    Jason Penley Member

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    Last week, I came to an arrangement with Pioneer Credit. With the debt now approaching $5K, I thought that I had better get serious about this matter, because it was possible that PC was waiting until the sum owing reached the magic 5k figure, before they pounced.

    The debt was originally $2K (app) and I was able to drive a very good bargain. For a debt totaling $4,800(app), Pioneer Credit agreed to a total payment of $1200, payable in monthly installments of $100. So in 11 months time, the debt will be cleared.

    Cheers and thanks,

    Jason.
     
  6. Sarah J

    Sarah J Well-Known Member

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    That sounds like a good outcome. Congratulations for resolving this matter. Best of luck with the repayments.

    One thing, hope you have this agreement down in writing. If not, ask for a confirmation email/letter.
     
  7. Jason Penley

    Jason Penley Member

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    Oh yes, I asked for the agreement in writing before consenting. Pioneer Credit sent me an email outlining the terms and conditions before I made the first payment....it would indeed have been foolish to make a payment without a written agreement in place. The payments are quite manageable for me, so I don't foresee any issues.

    Many thanks for your advice and interest (no pun intended).

    Cheers for now....Jason.
     

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