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.
- 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?