Voluntary termination or surrender

[Greg1988]

Hi,

New to the site but found it very interesting.

I am currently 7 months into a 4 year HP agreement on a motorbike which has suffered minor damage to the plastic and decal.

My agreement states I can only terminate the contract after I’ve made 24 months of payments.

Is this the case and I assume they will then charge me extra for the damage?

Do I have any other options as I’d like to hand back the motorbike ASAP as it’s been declared SORN and is not being used. It’s only done 700 miles!

Many thanks

C

[Aukey]

Hi Greg,

I believe you can voluntary terminate when you want but you will still be liable to pay 50% of the total amount. They will also want to charge you for any damages....

[Aukey]

Section 99: The right to terminate the agreement at any time

(1) At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement.


Section 100: Liability is restricted to 50%

(1) Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99 the debtor shall be liable, unless the agreement provides for a smaller payment, or does not provide for any payment, to pay to the creditor the amount (if any) by which one-half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before the termination.

(4) If the debtor has contravened an obligation to take reasonable care of the goodsor land, the amount arrived at under subsection (1)shall be increased by the sum required to recompense the creditorfor that contravention, and subsection (2) shall have effect accordingly.