What Happens If You Get a Notice of Termination?

When you finance a car with Marsh Finance, you agree to make regular monthly payments until the end of your agreement.

However, life doesn’t always go to plan. Sometimes a payment might be missed - maybe due to unexpected bills, a change in income, or even a direct debit error. When that happens, our goal is to work with you. Whether it's a one-off payment, a short break from payments, or a revised plan that suits your current situation, we’re here to help find a solution.

But if payments continue to be missed and we don’t hear from you, the situation can escalate. By the time you receive a Notice of Termination, you’ll likely have had several messages from us about missed payments, arrears, or a default notice. If these aren’t resolved, we may have to end your agreement.

That’s where the Notice of Termination comes in.

What Is A Notice Of Termination?

A Notice of Termination is a formal letter that confirms we are wanting to end your car finance agreement.

It’s the final step after other warnings and reminders have been sent, and usually happens when payments haven’t been made or no repayment plan has been agreed.

Do I Still Owe Money After Receiving A Notice Of Termination?

Yes. Once the notice is sent, the full balance remaining for your car becomes due straight away, including any arrears and outstanding payments left on the agreement.

Why Would I Receive A Notice Of Termination?

This step is only taken when:

• You haven’t responded to our previous messages
• No payment has been made
• No plan has been agreed to bring the account back up to date

We always aim to give you time and support to put things right before taking this action.

What Does The Notice Of Termination Include?

Your notice will clearly explain:

• How much you owe
• What actions are being taken
• What options are still available to you

You’ll receive it by post and email, and it will also appear in your customer portal.

What Should I Do If I Get A Notice Of Termination?

Act fast. This is your final opportunity to change the outcome.

Here’s what to do next:

• Contact us – Speak to our payment support team as soon as possible by emailing paymentsupport@marshfinance.co.uk or calling 01706 751 276. We’re here to help and talk to you about your options. Our opening hours are Monday to Friday, 9am-5pm.
• Check your agreement – You may still have options like voluntary termination or setting up a final repayment plan.
• Get support – If you need advice, contact a free and independent organisation like StepChange.

If you get in touch quickly, there’s a chance you may still be able to keep your car – but time is key.

Can I Keep My Car If I’ve Had A Notice Of Termination?

Possibly – but only if you act quickly. If we don’t hear from you, we may move forward with repossession.

Will This Affect My Credit Rating?

Yes. A default will already have been registered on your credit file. This stays on your report for six years, and may make it harder to:

• Get a mobile phone contract
• Take out loans or credit cards
• Rent a property or get a mortgage
• Apply for car finance in the future

Other lenders will see this information and may decide not to lend based on your history.

Will My Car Be Repossessed?

It depends. We’ll consider:

• How much of the agreement has already been paid
• How much is still owed
• Whether you’ve been in touch to try and resolve the issue

In many cases, we need a court order to take the car. However, if less than one-third of the total agreement has been paid, this might not be necessary.

Can I Still Choose Voluntary Termination?

Yes – in some cases, you can still choose Voluntary Termination, even after a Notice of Termination.

If you’ve paid at least 50% of the total agreement, and return the car in good condition, this could be a way to end the agreement and avoid further consequences. You’ll still need to pay any missed payments, the remainder of your agreement amount, and may face charges for damage beyond fair wear and tear or missing documents like the MOT.

Read more in our Voluntary Termination blog.

Can I Sell My Car To Repay What I Owe?

No. If your car is still on finance, you don’t own it outright. You cannot sell it without our permission.

In Conclusion

A Notice of Termination is serious – but it doesn’t mean the door is closed. You may still have options.

The most important thing you can do is talk to us by emailing paymentsupport@marshfinance.co.uk. We’ll always do what we can to help, but we can’t do that unless we hear from you.

If you’re struggling or unsure, StepChange and other charities can offer free advice and support.

Our legal team is here to support you and find a way forward – not to make things harder. Whatever your situation, we’ll treat you with respect and look for the best possible outcome.