PCP car finance

[perky247]

After help with a PCP car finance . Basically I can’t afford it any more so need VT, however , I owe £3900 to do this which have not got . If I still VT, can they refuse ?, obviously I will still be liable for the £3900, can I offer to pay this monthly etc, can they refuse , and will this affect my credit score
thanks in advance

[R0b]

You have fallen into the same trap as many others and creditors have fallen into with regards to VT rights. The law says you can terminate at any time by giving written notice. It is not conditional upon paying 50% but it does mean that if you do terminate, you are liable to make up the 50%. Those two points are not one and the same.

If you cannot afford it, you ask to make the repayments by affordable instalments but I expect the creditor might push back because they don't understand the law and will insist you have to pay the 50% before you can terminate. By refusing your statutory right, this could amount to a repudiatory breach for which you may be entitled to compensation but this can be a complicated process because you would need to give notice to terminate before they do, and if you get it wrong, you could have repudiated the agreement yourself.

Your credit score shouldn't be affected by the VT but lenders may take that into account as part of their criteria if you go looking for another car.