Is it true?

I need your assistance.

I bought goods on hire purchase in 2019. At the end of the first lockdown, I went to them and told them I can’t afford to pay them. They said I should keep on trying to find the instalment money but I failed to find it. I went to them the second time, they said when they take the goods because of failure to pay, I will continue paying even after they take them. I am asking; how fair is this? Is there truth in it?

Regular readers of The Voice will know already what I’m going to say because we’ve covered this many times before. Unfortunately, what you’ve been told is 100% correct.

If you fail to keep up the payments on a hire purchase agreement the store is entitled to repossess the item you bought. They will then sell it and deduct the money they get from the balance you owe them. However, it’s important to remember that the repossessed item is now second-hand, perhaps not in the best condition and they’ll sell it to the first person who offers them some money. The amount they get will almost certainly be only a fraction of what you still owe. When you add penalties, interest and debt collection and legal costs, you can easily end up owing MORE than you did before the repossession.

What’s worse is that you’ll then owe money for something you don’t even possess any longer. I suggest that you contact the store again and try to negotiate a repayment plan that you can afford.

The lesson is simple. Please do your best to avoid buying things on any form of credit if you can buy it for cash.