Cancel an HP earlier

anitasue

hi

Can anyone have any info on HP

We have a hire purchase with a balloon payment at the end of it. We need to end this agreement. it was for £30,000 over a 42 month period and we have paid about 11,000, in 23 month the balloon payment at the end of the agreement will be approx 8000.

Does anyone know how it works in cancelling the agreement and if we will have to pay any other money, I have looked on the paperwork it says that if we pay15000 we can cancel the agreement and owe nothing. The question is whether the value of the car is taken into account against the 4000 difference as the car value is appox 12000. if we cancel the hp now

GeorgeUK

The voluntary termination of the contract would mean that you would only need to pay up to half of the original amount and you would not owe anything after this on the amount remaining.
http://www.insolvencyhelpline.co.uk/...chase_debt.php
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_how_to_deal_with_hire_purchase_debt#6

Not too sure about implications of this going on your credit record or anything, but you could ask CAB for any info they could give.