Notice of Termination


What is a notice of termination?

This is a letter that tells you we are ending your hire purchase agreement due to breaching the terms and conditions. The full outstanding balance of your account becomes due once the notice has been issued.

When you fund your car through a hire purchase agreement, you take on the responsibility of keeping up with monthly repayments for the full length of the agreement.

Here we talk you through what happens when you fall behind on your payments, resulting in a Notice of Termination being issued.

Why would I receive a notice of termination?

A notice of termination is the last stage of the arrears process. To reach this stage it is likely because you haven’t contacted us, or answered our communications, to agree on a suitable way forward to rectify your account, such as repaying the arrears you owe, or setting up an affordable payment arrangement.

Before proceeding to Termination, we will give you an opportunity to address your arrears. If you fail to do so, a Default Notice will be issued, which will ask you to repay the arrears you owe. This letter will tell you how much money you owe and explain that you have 28 days to work with us and support you in getting your repayments back on track.

If you fail to make the required payment in time or don’t contact us to arrange an alternative solution, we could then take the decision to send you a notice of termination.

What should I do if I get a notice of termination?

You will find our specialist contact number in the notice.

At this stage, we may still be able to help keep you in your vehicle.

How will my car get repossessed?

Car repossession will depend on how much money you have paid back against your agreement.

If you’ve paid less than a third of the total amount you owe, your car can be repossessed without a court order.

If you’ve paid more than a third, the lender cannot repossess the car without a court order or the customer’s permission.

If you find yourself facing repossession, you should remove personal possessions from the vehicle.
When the collection agency comes to take the car, you should return all the keys, along with your registration and service documents, and any MOT certificates.

It’s also important to make sure the car is in good condition. If there is damage beyond general wear and tear, you may be at risk of further costs.

Does a notice of termination affect my credit rating?

Yes. The notice of termination is the letter that reports the default on a credit file. Unfortunately, it will have a serious impact on your credit score and will remain on your credit file for six years.

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