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hp early termination of finance

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Hi everyone


I have asked my finance people for a half way settlement figure on my car in writing as requested on my agreement.

my question is can i stop my direct debit???

i will not be using the car shortly as i am getting a new one (CASH) this time so can i just cancel my direct debit with them even though i have not got the figure yet of them?

hope someone might know the answer.


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If it is on HP then your agreement you hold with the finance company should clearly state the 50% mark for you to hand back the car.



Be careful as you are still liable to pay any services you took out - this means any GAP insurance or warrenty on the car. You are still liable to pay these.....as i have just found out!!


If you have written to them and they do not respond in an appropriate length of time then they are at fault.


What i would suggest you do is write to them again before cancelling teh Direct Debit (DD) and ask for a copy of the agreement they hold and a settlement figure whether its the 50% mark or an early settlement figure.


Once they reply with this info and document you can then write to confirm you want to voluntarily end the agreement (50% way) or you wish to proceed with the early settlement figure.


Once you have sent that letter off stop your DD so that if it overlaps on months end and beginning you dont get charged.


The consumer credit act (i think) states that if your account you hold is being investigated by yourself the account must be put on hold. No black marks can go against you for 30 days i think. Look into that more before you take my word for it.


Do everything in writing and get the figures first before you end the DD.

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thanks mortious


i send them a letter stressing that i wish to implement my(50%) right as stateted on my agreement to get a settlement figure on the car that i will owe to them, i have no gap nor warranty on the car so must i write to them again do you think before cancelling my direct debit?

cheers for the advice as well.

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i think you mis understand my long winded post....


if you have already paid 50% of your agreement or over then you do not need an early settlement figure!!!!


Simply tell them you wish to voluntarily terminate you agreement in writing, hand that car back and your done with it.


for example.


my 50% mark is 7224. i have paid 7225 (luckily) so i can arrange for it to be taken back. As i took out GAP insurance and warrenty (i was 19 ok!!) i am still liable for that cost so no point in handing car back yet as i cant afford that bit.



Again to stress if you have hit that 50% target just terminate the agreement and hand it back, should take no longer that 2-3 weeks.

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This might help you...


When I had duff finances I used Welcome and their extortionate deal left me looking for a cash buy, much like you.


When I bought my new car I had paid the 50% as required and stopped payment and told Welcome to come and collect the car. I stopped insuring it but put it in my garage.


It took Welcome THREE MONTHS to come and collect the car. They wanted me to settle in full the gap insurance. I refused, stating it was not necessary and that they had not completed the financial reviews it pays for. In any event after two weeks I started to bill them £25 a day for storage of their vehicle on my property. After three months this figure was ridiculously high and I demmanded its satisfaction before I would release the car. They gave me a written undertaking suggesting they take back the car and I pay nothing. It suited me and so I let them take it.


In my case that was the end of the matter. However for you bear in mind that Welcome were, in my dealings with them, useless, brainless, knuckle dragging baboons who could screw up a cup of coffee. So if you have paid your 50% and done what you were contractually obliged to do then I would, if they are not expedient, notify Welcome of the charge for storage of their vehicle on your land, and start to bill them. It will provide you with some leeway later should it be needed.





Litigation –


Lloyds TSB – Won (x2)

Barclays – Won

Abbey – Won

Welcome Finance – Won

Capital One – Won

AS Securi-T (as an advisor) – Won (x2)


Barclaycard – Ongoing

Lloyds TSB Credit Card – Ongoing

Experian – Ongoing

Ebay - Ongoing

Barclays (DPA issues) - Ongoing

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hi all

just an update on the car return situation.

after being moved from one department to another i finally got through to the right department (hooray) and amazingly no comments about about black listing or trying to re finance car by different payment schedules which i thought they would try they just gave me the balance i needed to pay and that was it just waiting for them to get cheque(recorded delivery) and get car im amazed at there responce to me waqnting them to have the car back.

thank you all for your help with this by responding to my thread

cheers and a happy new year to you all

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