Customers with hire purchase or PCP agreements regulated by the Consumer Credit Act, have right to voluntarily terminate your regulated Hire Purchase (HP) or Personal Contract Purchase (PCP) agreement. Tis right is provided in UK law (Consumer Credit Act 1974, Section 99/100) and is included in your contract documentation.
When you have repaid 50% of the Total Amount Payable (not the total amount borrowed, as you need to include interest and fees), you are entitled to terminate the agreement and return the car to Northridge.
If you have paid less than 50% of the total amount payable you may still voluntarily terminate your agreement under this clause, however you would remain contractually liable for the amount required to bring your account up to ‘50% paid’ (failure or delay [non receipt within 28 days] in paying this contractually liable amount may result in arrears or default being applied to your credit file.
As long as there are no “damages if you have failed to take reasonable care of the goods (over and above normal wear and tear)” and you have not exceeded pro-rated mileage limits [PCP only], you have nothing further to pay.
For PCP agreements, the total amount payable will also include the Guaranteed Minimum Future Value (final ‘balloon’) payment. Whilst Voluntary Termination will be recorded on your credit file, this is not a ‘negative’ marker but simply a required reflection on the closure of the account. If you would like more information on Voluntary Termination and eligibility and requirements, please contact firstname.lastname@example.org.