How to deal with Hire Purchase debt?

What is Hire Purchase?

  • A method of paying for the item in installments and eventually owning the item once the payments have finished.
  • Commonly associated with cars but can now be seen with items of furniture or white goods.
  • The item does not belong to you meaning it is a criminal offence to sell on the item without the creditor's written permission.
  • A creditor can ask for the item to be returned if the payments are missed.

Areas Covered

  • What happens if my circumstances change and I am unable to make the payments?
  • What will happen at the court hearing?
  • Do I need to attend the hearing?
  • What happens if I have paid under a third?
  • What are the overall payments if the agreement is terminated?
  • Can I terminate the agreement myself?
  • Will my creditors charge me for collection of any items?
  • Can the creditor terminate the agreement?
  • Will the creditor still come after me once the item is returned?

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