Your right to end a hire purchase or conditional sale agreement

You can end (terminate) a hire purchase or conditional sale agreement in writing and return the goods at any time. This can be useful if you can no longer afford the payments or you don't need the goods any more.

You will have to pay all the instalments due up to the time you end the agreement. If your payments come to less than half of the total price of the goods, you may still have some money to pay as the lender is entitled to this amount under the agreement. If you have already paid more than half of the price when you end the agreement, you can't get a refund but you usually won't have to pay any more.

If you are not sure whether you still owe anything, check the original credit agreement which should show the total price of the goods and the amount you must pay if you end the agreement. The credit agreement is the legal document you signed when you bought the goods.

Lenders sometimes say you must pay the whole amount owed under the agreement this is sometimes wrong.

hope this helps:-D

Citizens Advice

Its called voluntary termination and is well documented on these forums.

And also, with a lot of logbook loans etc, theyre never properly registered so in some cases you dont owe a penny.

Hmm... what about home insurance, where you want to cancel but they won't let you unless you pay for the whole years premiums?

AA automatically renewed my home & contents insurance... I cancelled the DD payments but they then took the whole year's premiums (without telling me) from my debit card, then cancelled the policy. They say I entered into a loan agreement when I agreed to pay by DD... very confused. Been left without enough money to pay my bills.

TB

TB, I suggest you post your query in the Insurance forum. Someone like Uncle Bulgaria will explain what's happened and maybe have a solution for you.

HB

Thank you… how do I post, please? TB