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I have a car on HP agreement and recently lost my job. I spoke with the finance company and they stated that as I'm only a year into my contract I'm limited as to what I'm able to do. They did say I would be able to give the car back to them. But they did also say that my interest is "front loaded" on the agreement. Basically I purchased the car for £6k and with the interest it was around £10k that was owing. They are saying that if the car was voluntary given up and sold at auction and for figures sake was sold for £3k I would still owe them £7000. I told them that as I wouldn't be taking the full balance over the 5 year period how could they charge me for 5 years interest and that was when they mentioned it was front loaded so I would be liable for the full balance... Is this correct? I would really appreciate anybody's help... Thanks...
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Re: Help with my HP Car finance agreement....
The finance company is talking crap as usual
You can terminate the agreement through a voluntary termination under
Section 100 (1) Consumer Credit Act 1974
The bad news is that you will still be laible for payments until 50% of the agreement has been paid
If you do not do it through a Voluntary termination (VT) but just give the car back which will be a voluntary surrender (VS) You wil be then liable for all sums due under the agreement
In my opinion you best bet is to write to the finance company and say you wish to do a voluntary termination of the agreement under section 100 CCA 1974
You do not have to have made payments to 50% or more of the ageement first to exercise this right but you will need to in the end to be free from this agreement
You do a VT and then decide on a repayment option with the finance company for the remaining balance up to the 50% mark on the original agreement -
Re: Help with my HP Car finance agreement....
hi thanks for the prompt response. Would this be 50% of the original car value or 50% of the amount owed including interest?
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