Car hire-purchase termination

rentux

Hi, we have bought a car with Welcome Car Finance 2,5 years ago on a hire-purchase terms and agreed to pay it in 4 years. And as per their contract after we have paid 2 years we have a right to return the car back without any additional charges.
So we decided to do so especially as the price is so ridiculious for a used car. Unfortunately they have told us we need to pay additional £1066 which they explained is for insurance for remaining years.
Does anyone had similar situation? Is this legal, do we have to pay it? When we bought a car they told us if we will want to return the car we need to buy insurance but now they are asking to pay for it for all remaining time!
Pls help.

LinasPilibaitisisbatman

If you invoke an insurance product then yes you will be expected to pay for the policy in full and not just pro rata.

You are being able to return the car as per the contract.

These sort of finance companies have you completely stitched up and only a mug would go with them.

dacouch

There is a possibilty the Insurance could have been miss sold to you which would mean you could reclaim the premiums you paid and avoid the remaining premiums.

Try posting on the "Reclaim PPI & Other Insurance Forum" on MSE as they might be able to help you

Mark_Hewitt

I had thought with insurance products if you decided to terminate the contract early they had to refund you pro-rata?