Voluntary Termination

fastmike

I terminated a hire purchase agreement on my car………there are no arrears or other outstanding moneys……the lender has informed me they will mark my credit file that I voluntarily terminated the agreement and returned the car ……….can they do that ? Theres no mention of this in my hire purchase agreement

CliveOfIndia

Yes, they can do that. However, if there is no money outstanding (i.e. you owe them nothing) then it won't negatively affect your credit file. In essence it's just showing that the "loan" - for want of a better word - was settled early. It's nothing to worry about.

It would be different if you owed them money, or if they repossessed the car. But a VT, assuming you met all the criteria to allow you to do so, will have no impact on your credit file.

You may see your score drop, since it's a change in your credit circumstances. But since the score is just a fairytale number that's not even visible to lenders, that matters not one jot.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6652613/voluntary-termination

Did you do what the finance company say you did, i.e. voluntarily terminated the agreement and returned the car?

Ayr_Rage

They can and will report how the credit ended and as long as that information is correct there isn't anything you can do about it.