HP finance cancellation? Will show as settled on credit file?

FTBSOS

Hi guys, I took out a HP loan on a car, but after signing the documents, I cancelled in a week. Lucky the dealer said don't about early repayment charges etc and paying it. Car was sold within hours to someone else.

Anyway, the credit search is on my file, because it's now been cancled, I haven't paid anything other than my non refundable depsoit.

Will the finance company create a record showing finance was taken out and it was settled? Also will this record be a positive one?

Tixy

As you cancelled under the cooling off period then it should never appear as a credit account on your files. The search will remain.

FTBSOS

Tixy wrote: »

As you cancelled under the cooling off period then it should never appear as a credit account on your files. The search will remain.

Hmm but even though i canceled before cooling off periord, finance company said even if i don't want the car, I would be liable for the FULL amount, plus daily interest charges.

They said speak to the dealership, and see if they would be willing to buy out the finance as they already been paid (dealership) They did and car was sold hours later.

I guess I'll have to wait and see, but even if it's added and it shows at settled, can't be a bad thing right? :money:

Tixy

If you cancel during the cooling off period then yes you are liable for daily interest charges between the money being paid (to the dealer in this instance) and you cancelling and the dealer then repaying them.

The advice you were given sounds slightly incorrect. The dealer had to refund the finance company once you had cancelled the finance agreement. You would still have been liable to pay the dealer for the car in cash (or other method), except in this case it sounds like the dealer agreed to cancel the sale to you.

but even if it's added and it shows at settled, can't be a bad thing right?

I would guess it would be viewed as neither negative or positive.