We have recent experience with the growing challenges of early termination of late payment leases, based on Section 99 (1) of the Consumer Credit Act 1974. Section 99 grants the debtor a right of voluntary termination, in which case Section 100 ensures that the amount payable is limited to an amount (if it exists) of which half of the total amount is equal to the aggregate of the sums paid and the total amount immediately before termination the amounts ow exceed the amounts owing. Some district judges were delivered with a summary of The Eaton District Judge`s July 2002 decision in Rover v. Siddons. In that case, the point came directly to the decision and the district judge referred to Goode`s comment, consumer credit law and practice on sections 99 and 100 and stated that it was indisputable that the debtor had not exercised his right of voluntary termination «… This is a regulated agreement and I think s.100 still needs to be taken into account even though, as in this case, the financial company has terminated due to infringement. Large arrears are a violation of the agreement and the absolute maximum amount that can be claimed is the amount calculated according to s100 (1) minus payments. A minimum payment clause… is not applicable because it imposes a heavier sentence than the one set at the s.100. And they shouldn`t change your deal if it makes things unfair to you. Before you make a financing deal, it`s worth making your money – and always reading the fine print.
Some financing agreements charge extra to cancel prematurely, so it`s best to know about this early on. These are described in detail in the treaty. In the same way that you can prematurely terminate a PCP agreement, you can also terminate an HP agreement. This means that you must have repaid 50% of the total amount of funding. However, with an HP agreement, you usually get the 50% refund point at about halfway through the deal. If you haven`t repaid 50% of the total amount of funding, you can make up for the difference and cancel it. The same rules for the car in good condition generally apply to HP as well. Voluntary termination may appear in your credit file.