Hire Purchase Help and Insurance!

iheartny

I just wondered if anyone could shed some light onto a problem i am having.

2 years ago i took out a hire purchase agreement with Advantage Finance (something i regret every day since!!!) I can no longer to afford the sky high repayments and wanted to "voluntarily terminate the agreement" which i was within my rights to.

I sent a letter to confirm i wanted to do this - as far as i was aware i had paid the minimum amount stated in my agreement to do this.

I recently received a letter back with a list of three items i had to pay before i could do this:

1: £1,122,08 - to bring my account up to date
2: £720 - amount outstanding to bring up to the minimum agreement sum
3. £350 - outstanding collection charges (am assuming this means the letters they send out!??)

and then it goes on to say i would owe £930 in insurance i took out with the policy (i.e. Gap insurance).

I still have 2 years left on my agreement which i pay £350 a month for a car that is worth £3k maximum now.

You can see why i want to just get rid of this now!!

I was thinking of writing a letter explaining i am in financial difficulty and want to give the car back and offer to pay 50% of the 3 charges and hope they at least consider this....

i also would like to know where i stand on the insurance charges as this seems ridiculous?

Sorry for such a long post but i am very confused!

ceejaydee23

if ita a car loan once u have paid half the original loan value (look at your paperwork) basically they would tell u where to take the car or should, as normally they go straight to auction. my o/h had a car loan with yes car credit b4 they went bust, he had paid half the term, and they just told him where to drop the car off!

RAS

Please get the paperwork out and then ring CCCS or NDL

There numbers are listed here http://www.moneysavingexpert.com/loans/debt-help-plan#help

You may have to keep re-dialling but they can at least ask you the relevent questions about the paperwork before giving you advice.

iheartny

thank you!