HP car paid voer half what are my rights in taking it back.

delta4

it pains me that I have paid so much on my car already and might have to give it back on HP. First response have let me pay 80 for two months but I am not sure I can keep the car. I pay 151 pm. It was about 4999 I only have about 1600 left to pay. It is hire purchase what are my right?

I would love to keep the car it is 10 years old really but cant afford the payments anymore.

What can I do?

daveyjp

Read the termination clauses in the HP agreement.

delta4

can anyone else give me an idea what nornally happens cant find the agreement. Thanks

LandyAndy

If you have paid over 50% of the original amount financed then you can hand the car back without further payment. The only proviso is that it must be in a condition commensurate with its age and mileage.

demonted

It's my belief that if you have paid more than 50% of the original finance agreement, the finance Co can not repossess the car.

What I mean by that,
If you was to default on payment, I believe by more than 3 months and had not paid more than 50%, the finance company can take your car back.

However, if you have paid more than 50%, I believe the Finance Company must issue County Court proceeding to repossess your car.

I also believe that although you have used your car as security to obtain finance, it is technically your car and once you have paid more than 50% of the finance agreement, you have the right to sell the car.

You may also have such a right to sell the car prior to paying more than 50% but I'm not sure about that.

Confirm all I've said above with Citizens Adice Bureau, I could be wrong.

Also, bear in mind, that handing the car back may be seen by Finance Co as defaulting on a credit agreement and they may enter a default on your credit file, which will remain on file for 6 years.

Should the Finance Co issue court proceeding and a County Court Judgment (CCJ) is made against you, that will remain on your credit file for 5 years.

So both the Default and the CCJ will remain on your credit file.

NeverEnough

Normally you cannot be in arrears when you VT so your mentioning paying lessthan the monthly instalment may mean you cannot VT the agreement. You need to check your agreement as to what you can do to voluntarily terminate the agreement.

forgotmyname

Have you missed payments or had to arrange a payment plan? VT may not be possible.

You need to phone and check. But handing it back maybe the best option anyway. They will sell it at auction take the fees off and send you the bill.

Whats the car worth? What condition is it in?

Dont have the agreement, Ask them for a copy.

LandyAndy

demonted wrote: »

It's my belief that if you have paid more than 50% of the original finance agreement, the finance Co can not repossess the car.

What I mean by that,
If you was to default on payment, I believe by more than 3 months and had not paid more than 50%, the finance company can take your car back.

However, if you have paid more than 50%, I believe the Finance Company must issue County Court proceeding to repossess your car.

I also believe that although you have used your car as security to obtain finance, it is technically your car and once you have paid more than 50% of the finance agreement, you have the right to sell the car.

You may also have such a right to sell the car prior to paying more than 50% but I'm not sure about that.

Confirm all I've said above with Citizens Adice Bureau, I could be wrong.

Also, bear in mind, that handing the car back may be seen by Finance Co as defaulting on a credit agreement and they may enter a default on your credit file, which will remain on file for 6 years.

Should the Finance Co issue court proceeding and a County Court Judgment (CCJ) is made against you, that will remain on your credit file for 5 years.

So both the Default and the CCJ will remain on your credit file.

This is pretty much entirely wrong

demonted

LandyAndy wrote: »

This is pretty much entirely wrong

Explain what is wrong.

Justify why it is wrong and give reasons.

demonted

As some seem to get great pleasure drawing attention to what they believe are wrongs, yet give no reasons or justifications to the claim, it appears who can't be bothered sharing their knowledge but are happy to criticise.

To ensure there are no misunderstandings,

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

LandyAndy

demonted wrote: »

Explain what is wrong.

Justify why it is wrong and give reasons.

demonted wrote: »

As some seem to get great pleasure drawing attention to what they believe are wrongs, yet give no reasons or justifications to the claim, it appears who can't be bothered sharing their knowledge but are happy to criticise.

To ensure there are no misunderstandings,

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

:rotfl:Answered your own question.