Voluntary Termination PSA Finance

[bebbinc]

Hi, I'm hoping somebody can help clear up some questions I have regarding a VT. I have a "just add fuel" deal with my car & I have had my paperwork through with all the details of the voluntary termination cost. I am 21 months into a 36 month agreement & understand I am required to pay 50% of the total amount of finance owing but PSA are stating that I am obliged to pay a collection fee for the vehicle of £79 and an early settlement figure of £264.88 for the insurance element of the agreement ??? On the "just add fuel" offer I pay my monthly finance amount & get insurance, servicing & breakdown cover free. Why would I be liable to pay for a years insurance on a car I no longer own. Any advice would be much appreciated & I presume from what I've read on other posts it would be highly recommended not to sign the forms they have sent through.

[Huxie]

Hi, I'm hoping somebody can help clear up some questions I have regarding a VT. I have a "just add fuel" deal with my car & I have had my paperwork through with all the details of the voluntary termination cost. I am 21 months into a 36 month agreement & understand I am required to pay 50% of the total amount of finance owing but PSA are stating that I am obliged to pay a collection fee for the vehicle of £79 and an early settlement figure of £264.88 for the insurance element of the agreement ??? On the "just add fuel" offer I pay my monthly finance amount & get insurance, servicing & breakdown cover free. Why would I be liable to pay for a years insurance on a car I no longer own. Any advice would be much appreciated & I presume from what I've read on other posts it would be highly recommended not to sign the forms they have sent through.

A quick Google of 'Just Add Fuel voluntary termination' and a look through the results suggests that the insurance element is not covered by the Voluntary Termination and will be payable. Check your original contract.

The Voluntary Termination guide by R0b has this to say about collection charges:

I am being asked by the lender to pay collection charges
This is another common claim by the lenders and the simple fact is that they cannot charge you to collect the vehicle. The Consumer Credit Act states that once you have invoked your right to terminate under section 99, lender’s cannot impose any further liability which includes charging for collection of the vehicle.

Although it has been previously mentioned that you need only deliver the vehicle a reasonable distance, I have yet to discover any conclusive evidence that this is obligatory. Therefore, if you wish to deliver the vehicle, it would not be unreasonable to receive reasonable expenses in doing so.