Hire purchase (HP)

The main differnce between hire purchase and other types of debt or credit agreement is that when you buy something on HP you do not own it until you have paid off the debt in full. Since the goods are not owned by the buyer (or person holding the goods) you cannot sell them until they are paid for. The only way around this is to get written permission from the owner prior to selling, if you sell the goods without this you are commiting a crimianl offence.

Another difference between a standard credit agreement and HP is in a standard agreement the creditor can only ask you to repay money but should you fall behind on payments that make up a HP agreement you can be asked to return the goods. If you have paid for more than a third of the goods then creditor will need to go though the courts to take back the item if it is in your home - but not if it is in a public place, for example a car parked on the street. With some HP agreements the amount to stop reposession without a court order differs and you should check the section of the form called "Repossession: Your rights".

Because of the complexity of a HP agrement if you are having difficulty making payments on it we would advise you to give us a call so that we can offer you advice specific to your circumstances. This is something that we will do for free and will not try to sell you a loan. If you have other financial difficulties that you would like to discuss we can also help with these.

© D3B7.com 2008 - Hire purchase HP
sitemap