Hire Purchase

Hire Purchase is a form of credit under which you hire goods from the finance company until you've paid the final instalment.

You can't end a hire purchase agreement until you've paid at least half of the amount owed. But once a third of the total amount payable has been paid the finance company cannot reclaim the goods for non-payment without a court order.

If the goods are faulty you claim from the finance company and not the retailer. You have more chance of getting your money back than if you pay by cash since you have the right to claim a refund many months after the goods are delivered.