white46 - Voluntary termination HP agreement - paid over half - finance arrears

[Amethyst]

Posted on behalf of new user


I want to voluntary terminate my hire purchase agreement on my car. I owe £3,300. I have paid over half but I have been told by the finance company that becuase I have arrears I will have to pay some shortfall.
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> I was advised before that if half had been paid I wouldn't have to pay any money unless the car was damaged etc.
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> Please advise.

[Guest]

Re: white46 - Voluntary termination HP agreement - paid over half - finance arrears

HI
Excellent thread here http://www.legalbeagles.info/forums/...t=mr+peterbard

Yes any arrears will be due on termination under section 99.

This does not mean that you cannot VT, you can VT the car at any time, it is just that you will receive a bill for aany outstanding hire payment up until the date of the termination of the agreement.

The way it works is , if you have paid half of your total agreement price and your repayments are upto date you do not have to pay anything else, however you have to have all you repayments upto date.

If you want to VT I would send off the template, they will undoubtedly say you cannot as you owe arrears, you will have to remind them that this is your statutory right under section 99 of the act and yo will be giving them 14 days notice , put the letter in the post(recorded) and take it form there.

[labman]

Re: white46 - Voluntary termination HP agreement - paid over half - finance arrears

Totally agree with Andy. It's worth mentioning though that if the OP has other debt issues and is looking at some sort of debt management plan, the arrears could (and should) be included in that as a debt. This may give the OP a more realistic timescale for repaying the arrears in a manageable way.

[Guest]

Re: white46 - Voluntary termination HP agreement - paid over half - finance arrears

Totally agree with Andy. It's worth mentioning though that if the OP has other debt issues and is looking at some sort of debt management plan, the arrears could (and should) be included in that as a debt. This may give the OP a more realistic timescale for repaying the arrears in a manageable way.

Hi Labman

Yes indeed, if you have other debt issues you need to get the VT in before they issue a default notice, as if you leave it until after they terminate you loose the facility.