Repossessing hire purchase goods
If your HP agreement has defaulted, your creditor can take action to get the goods back. How they do this depends on how much you’ve paid and where the goods are kept.
Your creditor should only repossess goods if they can’t get
the money back any other way. If you’re struggling to make regular payments,
let your creditor know. They might agree to make changes to your payment plan
until your situation improves.
You creditor can repossess the goods without a court order if:
- You’ve paid less than a third of the amount owed under the HP agreement, and
- The goods are not kept in your home or on private land
If you’ve paid more than a third of the agreement, or if the goods are stored on private land or inside your home, your creditor will need a court order before they can repossess them.
This means household items like furniture and electrical goods can’t usually be repossessed without a court order, but motor vehicles often can be.
If the goods are repossessed, your creditor will usually sell them at auction. If this doesn’t raise enough money to pay off the remaining debt, you will still owe them money. They may take further court action to get the money back from you.
If your creditor starts court action, you’ll receive some court forms in the post. If this happens, contact us for advice.