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Is Car Finance Causing You Debt Problems?
If you begin to have problems with the repayments on your car finance agreement you should let the car finance company know as soon as possible as they may be in a position to help you.
The car or any vehicle remains the property of the finance company throughout the term of the finance agreement (even on a purchase arrangement, you do not obtain ownership until the final payment has been made).
If you fall behind with your car finance repayments your lender has the right to take back the goods if you don't maintain your repayments. Once you are in arrears your lender will issue you with a notice of default to protect their asset as well as to give you an opportunity to catch up on the full arrears. However you will need to act within seven days to sort out the arrears payment.
If you cannot make the full payment, it is important to contact the lender as soon as possible to explain your situation. If the lender does not accept anything less than the full payment, they may take you to court. If the want to continue to keep the car you may ask the Courts to give you extra time to pay the arrears. However, if you are having problems keeping up with repayments it may be cheaper in the long run to hand the goods back.
If you have paid more than a third of the total cost of the Hire Purchase agreement (HP) or CS (not including any insurance), your lender will need a court order to take the goods back. If you've paid less than this, the lender still can't enter your property to take the goods without a court order, unless you give them your permission to.
If you are unable to maintain payments to a Hire Purchase agreement, Debt Plan Direct may be able to help you reduce the payments to your unsecured debts allowing you to meet your contractual payments to your Hire Purchase agreement.
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