Can my friend cancel their car lease agreement due to ill health?

A friend of mine who has a terminal illness is having trouble cancelling his lease on his car as he cannot drive anymore due to his illness. The leasing company has said he will have to pay the remaining 24 months repayments before they take the car away. This will mean the car will remain parked up and not moved for two years.

Why can’t he cancel the leasing agreement?

Asked on 26 July 2021 by

Answered by Dan Powell
When your friend took out the leasing agreement he/she will have signed a legally binding contract with the company in question. And the leasing firm will expect its fees to be paid unless there is a clause in the contract that allows your friend to terminate the agreement due to medical grounds.

If your friend took out a loan protection agreement then this may cover the cost of the lease in the event of a serious illness. Otherwise, your friend will need to appeal to the leasing company for help, if they are experiencing financial difficulties due to their medical condition.

The leasing company will be regulated by the Financial Conduct Authority (FCA), which ensure the company is operating fairly and within the law. The leasing company may also be a member of the Finance and Leasing Association and/or the British Vehicle Rental & Leasing Association.

All of these organisations will have a code of conduct that ensures your friend is treated fairly. They will also have an independent complaints process, which your friend can use if they feel they are being treated harshly.
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