Are you stuck with a hire purchase agreement that you regret signing up for? Don`t worry, cancelling it may be easier than you think.
Under UK law, consumers have the right to cancel a hire purchase agreement within 14 days from the date of signing, without giving any reason. This is also known as the “cooling-off period”. This applies to all hire purchase agreements, regardless of the amount borrowed.
To cancel the agreement, you must inform the lender in writing within the 14-day period. You can use a cancellation form provided by the lender or write a letter. Make sure to include all the necessary details, such as your name, address, and the agreement reference number.
If you have already received the goods, you must return them to the lender in their original condition, and pay for any usage or damage. The lender must refund any payments you`ve made under the agreement, including the deposit and any charges.
It`s important to note that cancelling a hire purchase agreement may affect your credit score. However, this is typically a minor impact, and far less damaging than not keeping up with payments on a debt you regret.
If you`re unsure whether to cancel the agreement, consider seeking advice from a debt charity or financial adviser. They can help you understand the potential consequences and weigh up your options.
In summary, cancelling a hire purchase agreement within 14 days is a consumer right that can offer a way out of a regrettable financial commitment. If you decide to exercise this right, make sure to inform the lender in writing and return the goods in their original condition.
