We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Voluntary Termination of HP Agreement
I have an HP Agreement in place for my car with Welcome Finance.
It was taken out in March 07, on a 4 year agreement. In April of this year, I will be able to voluntaryily terminate the agreement under the T's & C's of my contract.
I called Welcome to get more information on what I have to do to VT the agreement, and I was told that it would affect my credit rating by cancelling that contract before the full 4 years have been paid.
Is this correct, as legally I am entitled to terminate the contract after 50% of the HP amount has been repaid according to their T's & C's on my agreement.?
I have checked the VT figure quoted in my contract and have gone through my bank statements to add up the total amount I have paid thus far, to make sure I would be at that figure.
It was taken out in March 07, on a 4 year agreement. In April of this year, I will be able to voluntaryily terminate the agreement under the T's & C's of my contract.
I called Welcome to get more information on what I have to do to VT the agreement, and I was told that it would affect my credit rating by cancelling that contract before the full 4 years have been paid.
Is this correct, as legally I am entitled to terminate the contract after 50% of the HP amount has been repaid according to their T's & C's on my agreement.?
I have checked the VT figure quoted in my contract and have gone through my bank statements to add up the total amount I have paid thus far, to make sure I would be at that figure.
0
Comments
-
your credit file can be marked as VT ... it may make further HP difficult but otherwise it shouldn't affect your credit rating0
-
your credit file can be marked as VT ... it may make further HP difficult but otherwise it shouldn't affect your credit rating
Ah ok, so your credit file does get marked as having your agreement VT'd then.
Personally I think that's a bit naughty, as as a consumer I have not broken any laws, or defaulted on the contract.
Suppose it's their way of penalising you for not making them as much money. :mad:
How long would that note stay on my credit file?0 -
The vt code is attached to the profile of the particular agreement so it can stay there for 6 years.
You were misinformed by Welcome - why am I not surprised - insinuating it could effect your credit file. You are simply exercising a right stated on the agreement and you could complain to FOS or the FSA about their tactics.
All they were doing is trying to stop some of the losses caused by vt's but telling it wrong is very naughty.
The only detriment you may find as previously said is that you may find you have to put a large deposit down on any future HP agreement to stop the same thing happening again.0 -
I have VT'd a car before and had no issues getting finance on the replacement from the same company...
However, if you need to borrow from a sub prime lender the first time, there may be another reason for refusing an additional loan IMHO.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards