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If you are falling behind with
your HP payments are worried about the consequences
read below.
If
the Hire Purchase company is going to repossess
the vehicle:
A Hire Purchase
company can only repossess the vehicle without
a court order if you have paid less than one
third of the total payments and the vehicle
is parked on public ground. Therefore, to
buy time in which you can come to a solution,
move the vehicle to your drive or that of
a friend! Following that, contact a debt adviser.
For details on how to contact your local Citizens
Advice Bureau (CAB) visit www.nacab.org.uk
If you have
paid more than one third of the total payments
the Hire Purchase company cannot repossess
the vehicle without a court order. Before
getting this order the company must issue
you with a pre-possession notice. If you receive
a pre-possession order, get advice. Your local
Citizens Advice Bureau www.nacab.org.uk
will be able to help, however, don't panic.
Get advice as soon as possible but remember,
court orders do take time. Every pre-possession
notice must give details of what you owe and
allow you at least 15 days to remedy the problem.
If
you want to hand back the vehicle:
The effects
of handing back the vehicle depend on how
long you have been making repayments to the
Hire Purchase company.
If you have
paid more than 50% of the total repayments
you can hand the vehicle back and that is
the end of the matter. You will not have to
make any more payments to the Hire Purchase
company. It is worth checking your Hire Purchase
agreement, however, as although this is usually
the case, some contracts may vary. The Citizens
Advice Bureau www.nacab.org.uk
will be able to help you with this if you
have any queries.
If you have
paid less than half of the total repayments
due you will have to pay an additional charge
if you hand the vehicle back. This is normally
the difference between the payments already
made and half the original price of the goods.
There may be further charges as well so either
contact the Hire Purchase company, a CAB or
read your Hire Purchase agreement.
Selling
a vehicle under Hire Purchase
Do
not sell a car that you have bought under
Hire Purchase unless you have finished making
all of the payments. Under a Hire Purchase
agreement the vehicle does not belong to you
until the end of the arrangement. It could
be illegal to sell a vehicle in this way.
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