Will my credit rating be affected by cancelling an HP agreement?

Q We have paid over half the amount for our car through a hire purchase agreement.

If we decided to terminate our agreement does it affect our credit rating and is there any other hidden settlements?

AT

A As long as you have paid half the price of the car (the exact amount required is spelt out in a box on the front of the contract) you are entitled to return the car and terminate your hire purchase agreement without penalty. Bear in mind though that if you took out any credit to pay for payment protection insurance you will have to pay this off in full. And since you must return the car in reasonable condition you may have to pay more if you have damaged it in some way.

You should not be charged for the cost of returning the car. But if the contract says you must take it back yourself this should only be to premises within a reasonable distance of your home. Returning your car after you have paid half the price should not affect your credit rating since this is your legal right and should not be registered as a debt.