HP Surrender Policy

gillian2001uk

Hi there, wonder if anyone can give me any advice. I recently surrendered a HP agreement as I was 6 months over the half way mark on it with the car. Selling it myself proved difficult, therefore handed it back to the finance company.. They have now sold it and are asking me for £880, being the difference in what they sold it for and what they say was owed. When I did surrender, the settlement figure was £8400, they say they sold it for this, but still I owe £880....

How can this be? Any advice would be greatly received.

billywhizz

Within the agreement there should be a box statting "Termination Your Rights "and a figure - it will be with the Repossession figure (Sorry cant remember the exact wording and cant finda document to check). If you have paid more than Half of the total amount then you will owe nothing. If not then you will owe either (a) the payemnts up to half the total amount, or (b) whatever the HP comapny agreed on when they took the car back. Check what you had paid and the agreement and come back.

scotsgirl_3

Hi

First of all, you need to find out what type of agreement you have/had - look at the actual documents and find out if it was a hire purchase or a loan agreement - often dealers don't tell you the difference. If you look in the "Termination" section, if there are details there relating the handing back at half way then basically you have an HP agreement. If not its probably a loan, in which case you would be liable for the difference between the sals proceeds and the balance on the account: bear in mind that the balance and the settlement figure are normally two different amounts as you get a rebate of interest if you are settling, so the balance is normally higher.

Also, were you upto date when you handed the car back? Even if you have termination rights ( so had an HP) you have to pay for the car for as long as you have it - so if you handed it back after the half way point, but were a couple of months behind,and/ or maybe had fees outstanding, then you would still have to pay these.

hope this makes sense - if you can check this info then I will try t help you more.