Ending a hire purchase agreement yourself
If you can’t afford to pay your HP and you don’t want to keep the goods, you can end the agreement yourself at any time as long as the creditor hasn’t issued a default notice. If you end the agreement, you won’t get back any of the payments you’ve already made.
To end the agreement, write to the creditor. Send the letter by recorded mail and keep a copy for yourself. You have to ask for this in writing, and if you ask by phone the creditor doesn’t have to agree.
The creditor will reply in writing, telling you how they want you to return the goods. They may come to collect the goods or ask you to take them to a local shop or dealership. They can’t ask you to travel a long distance to return the goods.
There may be something left to pay after you’ve returned the goods. The more you’ve already paid, the less there’ll be left to pay afterwards. Normally, if you've paid more than half the payments due under the agreement, there'll be nothing left to pay.
If there's a shortfall, you can treat this like any other non-priority debt, like a credit card or loan, and offer to pay it back in instalments at an amount you can afford.