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Hire purchased car

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  • Hire purchased car

    So when I was younger and stupid I bought a car worth 14k£ on hire purchase, I didn't like to live in England anymore so I left to another country in Europe with the car and registered it there. I continued to make payments until I couldn't afford to anymore. Problem is I crashed the car to a point where it is unusable anymore, and I scrapped it. Now do to financial difficulties( corona virus) I came back to the UK. I was going to pay off this debt through monthly instalments(without them knowing what happened to the car) and they agreed but only if I paid arreas valued right now at 3000£ which I cannot pay. First they told me I can pay in 3 months then they spoke to a manager who asked for " a large sum to be paid in 3 weeks" didn't give me an exact sum but I can't get more than 300-400£. Now if they take me to court what can they do to me? Like will the court just send baylifs or the court will send the police to arrest me?
    Thank you
    Tags: None

  • #2
    You can't be sent to prison for debt.
    There is a procedure to through.
    What happened to the insurance money when the car crashed and did you have gap insurance?

    What will happen is that the finance company will have issued a default which has ruined your credit rating.
    They will probably come an agreement to pay by installment. But normally they would repossess the car. However you no asset.
    Come clean with them and continue to pay. They may suggest turning the HP agreement into a personal loan. Other more knowledgeable beagles will comment but my advice is not to go there.


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