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Voluntary Termination - Direct Debit

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  • Voluntary Termination - Direct Debit

    Morning all,

    Wonder if I can get some advice...

    I sent a VT letter to my finance company yesterday, using the template from here. I sent it by email and by special delivery. I got a confirmation email about an hour later and subsequently cancelled my DD. I have paid well over the 50% total amount payable and only had 12 payments left to make and next payment would have been due in 3 days time. I then received an email later that evening advising that the last payment is still due and to contact collection services if there's going to be a problem with this payment. From what I've read on here, the contract is terminated as soon as I send a VT letter. Was I right in cancelling the DD or do I still owe this payment to the finance company? I have paid £2000 over my 50% Liability.

    Any advice will be much appreciated.

    Regards,
    Tags: None

  • #2
    Re: Voluntary Termination - Direct Debit

    tagging [MENTION=71570]R0b[/MENTION] xx
    Debt is like any other trap, easy enough to get into, but hard enough to get out of.

    It doesn't matter where your journey begins, so long as you begin it...

    recte agens confido

    ~~~~~

    Any advice I provide is given without liability, if you are unsure please seek professional legal guidance.

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    • #3
      Re: Voluntary Termination - Direct Debit

      Hello,

      If you sent the letter saying that the agreement terminates immediately and the acknowledgement was received from the lender (whether an auto email or from a physical person) then that would be sufficient to cancel the DD. Notice must be given in writing so verbal termination is invalid.

      It sounds like their typical response, the CCA says your only liable for 50% it doesn't mention that following termination you owe a further month's payment. You only owe further instalments if there are outstanding arrears or that you terminated on the day the payment became due. If it was before that date then there's no obligation.

      Who is the lender?
      If you have a question about the voluntary termination process, please read this guide first, as it should have all the answers you need. Please do not hijack another person's thread as I will not respond to you
      - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
      LEGAL DISCLAIMER
      Please be aware that this is a public forum and is therefore accessible to anyone. The content I post on this forum is not intended to be legal advice nor does it establish any client-lawyer type relationship between you and me. Therefore any use of my content is at your own risk and I cannot be held responsible in any way. It is always recommended that you seek independent legal advice.

      Comment


      • #4
        Re: Voluntary Termination - Direct Debit

        Thanks Kati and R0b for such a timely response...much appreciated!

        The lender is VTG - Vehicle Trading Group/Limited. Would you advise I respond to the email with one of the templates from here informing them that I will not make further payments? Or shall I wait until they contact me with regards the payment or collection of the vehicle.

        Thanks so much!

        Comment


        • #5
          Re: Voluntary Termination - Direct Debit

          Not heard of VTG before so I can't comment on what their procedures are however, as you might read from here people end up having defaults reported on their credit file as a result of refusing to pay. This to my mind is clearly an abuse and also breach of data protection which warrants you issuing a claim (if you so wish) against VTG if they did the same.

          Obviously it is up to you whichever route you decide to take but make sure you intend to follow through with it otherwise it will make you look silly in the long run.

          No harm in sending a letter now, you could also ask them to provide evidence and the grounds on which they feel the payment is still required despite the agreement being terminated - i'd be surprised if they respond to that in any detail.
          If you have a question about the voluntary termination process, please read this guide first, as it should have all the answers you need. Please do not hijack another person's thread as I will not respond to you
          - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
          LEGAL DISCLAIMER
          Please be aware that this is a public forum and is therefore accessible to anyone. The content I post on this forum is not intended to be legal advice nor does it establish any client-lawyer type relationship between you and me. Therefore any use of my content is at your own risk and I cannot be held responsible in any way. It is always recommended that you seek independent legal advice.

          Comment


          • #6
            Re: Voluntary Termination - Direct Debit

            Thanks R0b, I do intend to follow through although just like you, I don't expect a detailed response either. I will send a second letter and keep you updated.

            Regards,

            Comment

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