Terminating HP after Paying Half Advice

kitty_and_gucci_2008

Hi,

I want to know is there any kind of template letter that i need to send to the finance company to notify them i am going to hand the car back as i have paid half (once i paid them a £300 lump sum to take me to the half way point)

The HP agreement says i can hand it back, will i get a default on my credit file?

Thanks.

System

Hi

Have a look through the following excellent factsheet from National Debtline:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_hire_purchase_debt

There's all the information you need and a template letter.

And no, as long as you have kept up payments as per your HP contract, you will not get a 'default' on your credit file - you are terminating the contract in line with your legal rights. You will get a VT marker though and this may affect your ability to get car credit.

I carried out a VT last year and have had no problems obtaining other types of credit (i.e. credit cards, loan).

Regards
UNDERGROUND