where do i stand on an HP agreement?

Syteanric

Hi everyone.

firstly please accept my apologies if this is in the wrong area of the forums (first time poster long time reader!)

I wonder if someone can help, in 2009 I purchased a brand new car on HP, paying the amount off monthly.

I have never missed a payment and understand all the interest rates etc...

The problem i have is that 6 weeks ago the car was written off in an accident, the Insurance company agreed to give the finance company the value of the car as a lump sum.

I have a small amount left to pay off, which i owe and am more than happy to pay of course. The finance company (FGA capital) have told me that I have to pay £295.24 off as a final settlement in one hit!

I cant afford to do this, they told me that because a lump sum came in it cancelled the Direct debit (this was not what I requested, and was never made clear to me would happen by anyone). when i asked could i set up a new direct debit and pay the final amount off in 2 instalments they told me this could not be done because it was an HP agreement and i would have to pay the full amount off in 1 hit.

I owe the money, and am very happy to pay what I owe but i simply cannot afford almost £300 in one go!

what can i do?

Thanks in advance for your help

Tixy

They are entitled to require the full amount to be paid. But if you cannot afford to then you'll have no choice but to pay it in installments. Regardless of what they say they will accept if you pay what you can afford and pay it in 2-3 installments the chance of them taking any action in that time is very low.

They do have a right to mark your credit file to show you have missed payments/ not kept to the terms though.

If you ask them for bank details so you can make the payment you can then pay off what you can afford and then pay the remainder next month.