Bailiffs can only take goods that belong to you. This means that they are not allowed to take goods purchased through leases, since they are still owned by the lender at that time. Learn more about what bailiffs can take. Leases are similar to leases that give the lessor the ability to buy at any time during the agreement, such as . B car rental. Like rent, rental purchases can benefit consumers with bad credit by spreading the cost of expensive items that they could not afford over a long period of time. However, this is not the same as a credit extension, since the buyer technically only owns the item once all payments have been made. If you miss payments to an HP agreement, your creditor will contact you. They can allow you to pay back arrears over time or renew the contract. How a deficit is compensated after the return of the goods means that you almost always owe less than the account and the creditor terminates the contract.

This means that if you know you can`t afford to pay, it`s best to act quickly and terminate the contract before arrears pile up. If your contract is not with a bank or financial company, In addition, the late interest rate and arrears conditions between February 1, 2020 and (i) November 19, 2020 (for agreements with banks or financial companies regulated by the SCA) and (ii) January 31, 2021 (for agreements with other financing companies) are limited to the amount of 5% per year of interest for simple receivables. In other words, you don`t have to pay late interest or fees on that amount. This helps reduce the growth of your debt if you are unable to pay due to the impact of COVID-19. For more information, see FAQs (17) – (29). In addition, your financing company cannot terminate your contract because you are not able to pay in a timely manner. If the lender terminates the contract, for example. B because you did not follow the refunds, he may be able to take possession of the goods.