Hire Purchase Checklist

Use this checklist when choosing to offer hire purchase, and as a guide for you and your staff on entering into a hire purchase agreement with a customer

Before a hire purchase contract is entered into:

• Check your advertising is clear and correct.
• Don't make your advertising sound like the finance deal on offer is cheaper than it really is.
• Don't mislead a customer into believing they can have the goods on hire purchase before a required credit check has been completed.
• Don't mislead customers about cost/obligations.
• Invite customers to take a copy of the contract away overnight and come back to sign the contract the next day.

Check the details in the contract

• Check that the contract accurately reflects the claims made in your advertisement.
• Check the figures on the contract are correct and add up.
• Check the goods are accurately described on the contract.
• Check that you have the correct finance rate.
• Complete the form accurately, making sure all vital details are recorded.
• Make sure you, the customer, and the guarantor (if there is one) have signed the hire purchase contract.
• If you make a mistake when completing the hire purchase contract, cross out the mistake, write the correct information, and ensure both you and the customer initial the change.
• Where possible walk the customer through the hire purchase contract. Ask if they have any questions.
• Ensure any guarantor is fully aware of their obligations under the contract.

After the contract is signed

• Keep good records of the account - in writing.
• Advise customers to contact you and the finance company immediately when they are having trouble making payments.
• Follow the repossession rules.
• Don't push a customer into a hire purchase you know they can't afford.