**Sorted**Finance company threatening to damage credit file

[mustard7]

Hi all,

Apologies if these questions have been asked and answered in the past. I have looked, but cannot find a case similar to mine.
I have a car on finance with Barclays partner finance.
I am 2 months from the 50% mark, but I want to do the VT now as I have another vehicle, and cannot afford the repayments for the next 2 years on this agreement.

Today I phone BPF to pay off what I owe to get to the 50% mark (approx £700)
They tell me that even if I pay the £700, I am still liable to make the monthly payments up until the car has been sold at auction.
So they wouldnt take my payment as I would end up making over payments as the monthly direct debit would still be taken up till the car is sold.(they said they were doing me a favour)
When I said I could cancel the DD, they said they would mark my credit file negatively up until the car was sold at auction by them even though the 50% mark had been made and I had informed them of the VT.

My issue is that the car needs to be returned in a good condition, which it is. It has been serviced regularly and has a valid MOT, however, the MOT runs out mid march.
I do not want to pay for a years MOT on a car that I am giving up.
Secondly, the insurance is up for renewal at the same time. If I have to renew and then cancel my insurance company hits me with admin charges etc.
So ideally, I want to pay up to 50% now and give the car back.

All the VT posts I can find are for people who have reached the 50% mark the normal way. Am I still in the same position as them, or, does BPF have a point?

Any help/advice gratefully received.

[Amethyst]

Do you have a copy of your agreement ? It sounds like they are talking poppycock but it's best to check you actually have an agreement that is covered by VT.

[mustard7]

Hi,
thanks for the swift response.
No, I don’t have a copy of the agreement, not hat I can find anyway. But I’m sure (and the person on the phone just now) said I had the right to VT at 50%

[Amethyst]

You need a copy of the agreement to check, otherwise you are basically being reposessed, and would have to pay any shortfall between what they sell the car for and what you've paid to date vs the amount of the original finance - which seems to be what they are saying.

Ask the phone person to send you a copy of the agreement so you can check details - if they won't send a copy out then get a CCA request sent off to the finance company asap.

Do you know how much the total agreement was for, how much you have paid - or what the cash price of the car was,the interest rate, the term of the finance etc ?

( For example... if it's a 4 year agreement, and you've paid 2 years, that won't necessarily mean 50% - it's 50% of ££ of the total amount due under the agreement not 50% of the term ( people often get that confused - so the agreement is important to check exactly what kind of agreement it is and the terms applicable)

[mustard7]

Hi again,
The agreement had the 50% VT clause to it. I’m sure of that.
When I spoke to the person they told me that I could VT after I had paid the shortfall up to the 50% mark.
Roughly, total amount payable was £15,000. (Including interest and charges)
i am roughly £700 short of the £7500 needed to reach 50%.

I don’t think the VT is he issue here, it’s simply the fact that I am trying to reach the 50% mark earlier than normal repayments would take (2 months early)

i could wait for the 2 months to pass, but by then I will have to fork out for an mot and to insure he car again.
That could cost quite a bit if the car failed it’s mot for example (though don’t think it would) buy you never know.

I also dont want to have two cars on the drive costing me two lots of tax and insurance.

[Amethyst]

If you waited the two months before VT'ing the car, I can't see why the finance company's position would change, in that they are saying you would have to keep making payments up to when the car is sold at auction .... there's something not right there... was this all just by phone or have you put anything in writing to them/had any response.

When I spoke to the person they told me that I could VT after I had paid the shortfall up to the 50% mark.

Yes that's fine. BUT

They tell me that even if I pay the £700, I am still liable to make the monthly payments up until the car has been sold at auction.
So they wouldnt take my payment as I would end up making over payments as the monthly direct debit would still be taken up till the car is sold.(they said they were doing me a favour)
When I said I could cancel the DD, they said they would mark my credit file negatively up until the car was sold at auction by them even though the 50% mark had been made and I had informed them of the VT.

just isn't fine.

Tagging R0b to have a look, but I think I'd be getting hold of your agreement asap.

[mustard7]

Thanks for your help.
I will try and look for he agreement tonight, but not holding out much hope.
Asking them to resend may just delay the process.
I just want rid

[Amethyst]

I understand, I just don't want you to end up in a worse position still having the debt and no vehicle so it is best to be sure before you act. Can you keep the car off the road anywhere and SORN it while it's out of MOT while you get this sorted. It might be the contract is fine and you can VT it as you've paid 50% but that the person you spoken to on the phone has no idea.

Barclays Partner Finance products https://www.barclayspartnerfinance.c...nanceproducts/ which does include PCP.

[mustard7]

Yes,
i could declare it SORN and keep it off the road. That wouldn’t be an issue, however as far as I was aware, a car returned via VT would need a valid MOT, which would be a cost to me.

Just thought of another reason why they may be playing like this.
If I make the next 2 months payments, I will be just a tiny bit short of the 50% mark.
By making the 3rd months payment I will go over the 50% mark by a couple of hundred quid.

[Phaeton]

For the £40 an MOT costs surely it would be wise to have this done, you can still drive it to the MOT station after you have made it SORN (by prearrangement) but it must still be insured. Failing that my local garage will come, collect, MOT & return it for £50 that way it doesn't have to be insured as it's covered by their insurance.

[mustard7]

So I had a look for the credit agreement last night, but cannot find it.
All I found was the annual statements that BPF have sent.
In them it states that for the fixed sum, fixed rate agreement I do have the right to terminate the agreement in accordance with section 99 of the CCA 1974.

Im going to phone them again and see what response I get and will post here after.

[Amethyst]

That's good. So you do have the right to terminate and be liable for half. It does not matter when, so if you do it two months before your payments would hit the 50% mark - if you make up the payments to the 50% that should be it. None of this malarky about continuing payments until the car is auctioned and damaging your credit file.

I would start by paying up the 50% and sending them a formal notice http://legalbeagles.info/forums/foru...tter-templates

Have a read of this thread too - which details some of the issues people are having with BPF - http://legalbeagles.info/forums/foru...rmination-help

R0b


sec 99 and 100 for your ref
https://www.legislation.gov.uk/ukpga/1974/39/section/99
https://www.legislation.gov.uk/ukpga...39/section/100

[Amethyst]

This thread ( posted previous one before ) http://legalbeagles.info/forums/foru...-success-on-vt

[R0b]

Hello

Sorry I've not been around much to post but will look at this later today and get back to you.

[mustard7]

Wow, that guy seems to be in the same position as me.
Anyhow, I’ve just got off a successful phone call with Barclays. I called there bluff a little and told them I had the credit agreement in front of me (which I didn’t) and said that nowhere did it mention that I had to keep up repayments until the car was sold.
I have now paid them 50% and told them I would not be signing any paperwork they sent me.
After a bit of time they agreed and said I just needed to send confirmation of the VT to them via email (I will send via post too)
they also said it was fine for me to cancel the DD, which I have done.
Now whether or not they put negative marks on my credit File in the future we will have to see. But the advisor said that they wouldn’t.
I wish I knew how to record phone calls!
I am happy to drop the car at there auction centres... however, none are within 40-50 miles of me which is a pain.
Can someone clarify the following for me?
now that I have paid 50% and have/will notified them of doing a VT, do I need to (or not) get the car a new MOT which runs out mid March if they haven’t either collected or arranged for me to drop it off by then?
thanks