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How to Get Out of Black Horse Finance in 2024

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By
Scott
Scott Nelson Profile Picture

Scott Nelson

Managing Director

MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

Learn more about Scott
&
Janine
Janine Marsh Profile Picture

Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Mar 1st, 2024
Could you legally write off some debt? Answer below to get started.

Total amount of debt?

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

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Get Out of Black Horse Finance

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

If you’re trying to get out of your Black Horse Finance car contract, you’ve come to the right place for help. Each month, more than 170,000 people visit our website looking for guidance on debt matters.

In this simple guide, we’ll cover:

  •  Who Black Horse Finance is
  •  How to handle your car finance deal
  •  Ways to legally write off some Black Horse Finance debt
  •  How to give your car back to Black Horse
  •  Details on Black Horse Finance’s voluntary termination

Navigating financial difficulties can be challenging, and it’s common to feel unsure about seeking help. In fact, Citizens Advice revealed that 60% of adults facing financial difficulties hesitate to seek assistance.1

If that’s your case, don’t worry — you’re not alone. We’re here to help you understand your options and find a way forward.

Let’s start exploring your Black Horse Finance solutions.

Could you legally write off some debt?

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

Can you pull out of a finance deal?

The Consumer Credit Act states that all consumers should be given 14 days to withdraw from an agreement.

This applies to all forms of consumer credit, including car financing agreements. 

Can I get out of a car finance deal?

There are only two ways to get out of a car financing deal:

a) pay off the remainder of the agreement

b) exercise your right to voluntary termination. 

As most people want to get out of their car hire purchase (HP) agreement because they can’t afford to keep up with repayments, the first option is usually off the table.

Ending a car finance agreement early may have implications unless it is within the 14-day cooling-off period.

Implications of terminating a car finance deal can affect your credit score, leading to difficulties obtaining future credit.

You may be required to pay back money already loaned, plus any fees and interest charges.

You may wish to consider other options, such as refinancing car loans or transferring the balance to a lower-interest-rate credit card.

I recommend seeking professional help from reputable debt-help organisations such as the Citizens Advice Bureau Step Change or National Debt Line to discuss the option best suited to your circumstances and to get general advice on managing your debts.

Debt Solutions Comparison

Struggling with debt can be quite challenging. But don’t worry, there are different debt solutions available that can help you.

These are:

Debt Solution Description Formality Debt Type Debt Range Legally Binding Impact on Credit Score Asset Risk Monthly Payment Duration Creditor Agreement Required
Debt Management Plan (DMP) Agreement to pay back non-priority debts in one monthly payment. Informal Non-priority debts Any amount
No Yes No Varies Varies (until debt is paid) No (but creditors must be informed)
Individual Voluntary Arrangement (IVA) Agreement to pay back all or part of your debts over a set period. Formal All or part of debts Usually over £10,000 Yes Yes Possible Fixed Fixed period, usually 5-6 years Yes (75% by debt value must agree)
Debt Relief Order (DRO) Freezes debt for a year and be potentially written off. Formal Non-priority debts <£20,000 debt Yes Yes No None during freeze 12 months No (court approval needed)
Bankruptcy Legal status for those who cannot repay debts, potentially writes off debts. Formal Unmanageable debts Any amount, typically high debt Yes Yes High None during bankruptcy Usually 12 months, then discharge No (court process)
Consolidation Loan Taking out a new loan to pay off all existing debts. Multiple debts Based on loan amount Varies Yes Depends on loan type Fixed Depends on loan terms No
Payment Holiday Temporary relief or reduced payments offered by creditors.
short-term financial difficulties Any No Yes Low Reduced or paused payments Break of up to 6 or 12 months, depending on circumstances, payment history, and creditor’s policy. No
Informal Negotiation Direct negotiation with creditors for reduced payments or extended terms. All debts Any No Possible No Negotiable Until agreement terms are met No
Statutory Debt Repayment Plan (SDRP) Plan to repay debts over a reasonable time, with protections from creditor action. Formal All debts Varies Yes Yes No Fixed Varies, based on ability to pay Yes
Equity Release Homeowners release equity from their home to pay off debts.
Debts of homeowners, typically older individuals aged 55+ Varies and depends on property value Yes Yes Asset (home) is used as collateral Varies 8-10 weeks timeframe from application to fund disbursement. Lifetime; repaid on house sale/death. No

How a debt solution could help

Some debt solutions can:

  1. Stop nasty calls from creditors
  2. Freeze interest and charges
  3. Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:


Situation

Monthly income £2,504
Monthly expenses £2,345
Total debt £32,049

Monthly debt repayments

Before £587
After £158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

Get started

Can I give my car back to Black Horse?

It may be possible to return the vehicle to Black Horse and end the HP Agreement. To do this, you must voluntarily terminate the agreement using Section 99 of the Consumer Credit Act.  

The Consumer Credit Act was introduced in 1974 to protect customers in credit agreements, it sets out rules and regulations that lenders must follow when providing credit to customers.

If they fail to follow the regulations, then action can be taken against them.

Section 99 Consumer Credit Act states that;

  1. The customer can terminate the agreement within 14 days of signing. However, if there is any damage to the vehicle, you may have to pay for repairs.
  2. The customer has the right to receive a statement at least once a year detailing all transactions.
  3. Customers may request a statement within 30 days if they have entered into a running account.

We explain the process in detail below! 

» TAKE ACTION NOW: Fill out the short debt form

Black Horse Finance voluntary termination

Black Horse Finance voluntary termination (VT) is when you give back the vehicle to end the agreement and don’t have to make any further payments.

However, you also won’t get refunded for the money you’ve paid. Nevertheless, it can stop you from getting into account arrears and serious debt. 

You can return the vehicle to Black Horse under Section 99 and Section 100 of the Consumer Credit Act, providing you’ve already paid at least 50% of the money, fees and interest owed in the agreement.

If you’re short of this amount, you must pay the difference before you can return the vehicle.

If the vehicle is damaged in any way, then you will be responsible for the repairs.

The steps for voluntary termination are as follows;

  1. Check your loan agreement for the terms of VT
  2. Contact Black Horse Finance for an up-to-date statement of your account so that you can work out what you owe.
  3. Provide written notice stating that you wish to voluntarily terminate the agreement under section 99 of the credit consumer act. Also, provide details about the card, such as make and registration.
  4. If you are required to return the vehicle yourself, then do so.
  5. Once you have sent the letter, cease payments.
  6. Keep a log of all correspondence.

Source; Money Savings Expert

Black Horse Finance Contact Details

Post: Black Horse Finance Customer Services, St William House, Cardiff CF10 5BH
Phone: 0344 824 8888
Monday to Friday 8:30am – 6:00pm and Saturday: 9:00am – 1:00pm

Text Relay Service: Please dial 18001 followed by the phone number above
Website: https://www.blackhorse.co.uk/
Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

References

  1. StepChange – Credit safety net report
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The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Debt Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.