Car HP

mountainofdebt

I've posted this on motoring as well but was wondering if anyone on this board knew the answer to this question.

What happens to a car, bought on HP, where the person who has taken the HP agreement has died, assuming that no payment protection was taken out.

The account from which the HP payments were made has been frozen so would the HP company be legally entitled to just take the car, as no more payments can be made from this account?

Thanks in advance

newmum1

id assume that the company would just come and take the car, have you tried contacting the HP company??

Bossyboots

This is what is says on Direct.gov

Hire purchase (HP agreements)
The buyer doesn’t own the property until the last payment has been made. But if over one third of the agreement has been paid, the seller needs a court order to get the goods back.

Xbigman

The executor or administrator of the estate needs to contact the HP company and sort it out directly. This is primarily going to be governed by what the executor/administrator wants to do with the car. Handing it back, selling it to pay off, paying off from the estate, even the executor/administrator making a payment from their own pocket in the short term (to avoid penalties) is a possibility.
Certainly any shortfall will be payable by the estate.
Regards



X

mountainofdebt

is life is going to get interesting in the next couple of weeks then, lol!!!!!