What if I just want to hand the car back? If you bought your car using personal contract purchase (PCP) or hire purchase (HP) then you’re allowed to hand it back to the finance company if you have already paid off 50% of the loan, including any interest and fees. This is known as voluntary termination.
How do I complain about car finance?
How to complain. Talk to your finance provider or credit broker first. They need to have the chance to put things right. They have to give you their final response within eight weeks for most types of complaint.
Does voluntary termination car finance affect credit rating?
Does voluntary termination affect my credit score? Voluntary termination will probably appear on your credit score. However, as long as you make your 50% repayment amount and any additional charges (e.g. for wear and tear), it is unlikely to have a sizeable impact on your ability to get car finance in the future.
What happens if car is not on Finance?
It is not usual for the finance companies to intervene. This is because, almost all finance agreements contain a clause warning that if a fine or penalty is not paid and the vehicle is subsequently seized, that this will lead to the agreement defaulting. In order to protect their vehicle, some companies issue a Default Notice.
Can a bailiff take control of a finance car?
Although the regulations expressly provide that a bailiff may only take control of goods belonging to the debtor, this does not automatically mean that a car that is on finance on hire purchase vehicle cannot be taken into control.
What are my rights if the car I bought has a problem?
A car is just like any other product you buy, your rights to redress if there are any problems are against the ‘retailer’ that sold it to you – in the case of cars that will usually be a dealership.
Can a car be seized if it is on Finance?
Generally, whilst many vehicles subject to finance are seized, the same cannot be said for vehicles subject to Hire Purchase. No two cases are alike. At the very least, all enforcement companies will want to examine the relevant hire purchase (or other) agreement.
