Hire PurchaseThis is a featured page


Buying things on HP costs more; a personal loan or interest-free deal may be better.

If you can’t make HP payments:
Check your finance contract – you may be allowed to return the goods or make repayments over a longer period. Or you can try negotiating with the finance company. Ring the seller or finance company as soon as possible and ask if you can make arrangements for smaller payments over a longer period (you’ll pay more interest). Or ask if you can return the goods. You’ll have to pay what you owe less what the seller can resell the goods for. If the finance company says the goods are worth less than 80% of the cash price, the finance company must send you a “post possession notice” and you have certain rights under the Credit Repossession Act 1997.

You may lose less money if the seller agrees that you can sell the goods or get someone to take over the HP.
Once you have signed up for an HP, you can change your mind and get out of the whole contract if you (or if the service has not been performed) cancel within 3 working days of receiving the following information from the creditor:
  • the unpaid balance;
  • the amount and when each payment is due
  • any fees and charges;
  • any security interests to be taken;
  • how the interest rate applies, if there’s an interest free period and when interest begins to accrue;
  • any default interest and fees (schedule 1, Credit Contracts and Consumer Finance Act).
This information must be provided to you before you sign the contract or within 5 working days of signing. You will be required to pay reasonable costs and interest on cancellation. You must return the goods within 3 working days. There are some exceptions and for further information, you should seek legal advice.





Jeanierich
Jeanierich
Latest page update: made by Jeanierich , Jul 7 2009, 9:28 PM EDT (about this update About This Update Jeanierich Moved from: Your Consumer Rights - Jeanierich

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