Hire purchase "interest"

Hire purchase "interest"

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Are hire purchase charges for credit, conveniently called HP interest, interest or charges? It is an important distinction because, whilst HP agreements are not loan relationships, any interest arising on them does fall within loan relationships.

I had always been advised, formally and informally, that HP interest is not interest (I certainly have never seen it so described on any HP agreement), amounting only to a charge for credit. As such, charges would seem to fall outwith LR rules?
David Lochhead

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