Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

[leyton38]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi

I was wondering if i could get some advice? Im going to read through this thread but i'll give you my story first and like i said if i could get some advice that would be much appreciated. Ok so here goes.

about 18 months ago i financed a car for my brother who was paying the car off on a monthly basis, however he is now in a position where he is unable to pay for the car or use it due to personal reasons and i am now stuck covering the cost of a car which i do not use which is effetely just siting on the drive. I'm at my wits end and do not know what i can do. The cars value will not cover the remaiing finance on the car and i cannot keep paying for it as it is putting me in a terrible finance position. Also i do not want to default on the car and ruin my credit score as i am looking into buying a house in the next year. I have also not hit the 50% period on the car to do a VT and walk away with no payments.

Like i said if i could get some advice it will be most appreciated.

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi

I was wondering if i could get some advice? Im going to read through this thread but i'll give you my story first and like i said if i could get some advice that would be much appreciated. Ok so here goes.

about 18 months ago i financed a car for my brother who was paying the car off on a monthly basis, however he is now in a position where he is unable to pay for the car or use it due to personal reasons and i am now stuck covering the cost of a car which i do not use which is effetely just siting on the drive. I'm at my wits end and do not know what i can do. The cars value will not cover the remaiing finance on the car and i cannot keep paying for it as it is putting me in a terrible finance position. Also i do not want to default on the car and ruin my credit score as i am looking into buying a house in the next year. I have also not hit the 50% period on the car to do a VT and walk away with no payments.

Like i said if i could get some advice it will be most appreciated.

Hello

First of all, you don't need to pay 50% before you can terminate the agreement but 50% is the maximum amount you need to pay. Therefore if you terminate early then you could simply suggest a repayment plan which is reasonable - when I mean reasonable I do mean a reasonable amount that you can afford to pay and still have a means of living.

Whilst I appreciate you got finance for your brother, its situations like these that can cause problems because ultimately you are legally liable for the finance and not your brother, so you can't legally make him pay you back and he gets away for free. There is also sometimes a clause in the contract to say you must be the only use of the vehicle during the agreement and allowing others to use without permission may give them reason to terminate the contract as a breach.

[Andyreed99]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hello,

I'm afraid your suspicions are correct. Your agreement should have a clause that says "Termination: Your Rights" and within that clause it says if you have paid £x and any outstanding instalments you will not have to pay anymore. You can of course terminate before you make that payment but will have to usually pay in full for the remaining balance that makes up the 50%.

Legally speaking, once you give notice to terminate there is no going back and the agreement is terminated. What you could suggest is that you give them a call and set up a direct debit to pay back the £3.3k over a period of time though they may or may not agree to this and is entirely their choice.

There are certain rules that lenders must take into account when someone is struggling to repay the amount back and they need to consider your financial circumstances as well. So providing you offer to repay a reasonable sum (not £5 per month) that reflects what you can afford to pay back, hopefully it should be fine. If they are playing hard ball then your only other option is to make a formal complaint and then to the Financial Ombudsman if you are still not satisfied.

They could also, technically take you to court to recover the remaining balance which if you cannot afford, would end up with a CCJ on your file for 6 years.

Rob

Thanks for your response

I have now received a letter on 10/11/16 from MBFS stating that I am entitled to VT the car (36 days after letter was signed for).

I sent them the VT letter via special delivery signed for on 4/10/16 and they received 5/10/16 in which I gave 14 days notice and they failed to respond until I called them twice and sent electronic copies of the letter & signature of the person who signed for the letter.

They are stating I should still pay the monthly rental but I am sure I do not need to do this and cancelled the DD due 1/11/16. Their collections team are now chasing me for payment & DD mandate?

They have sent through a form saying I should sign & return - I do not intend to do this as I have given notice already!

They are asking me to pay the shortfall of £3379 also? Is this correct and does this payment does not form part of the termination agreement?

The letter also states that I will be liable for any damage or excess mileage, I though reasonable wear & tear applied? The car has been serviced but as Mercedes do not supply a service book an independent garage serviced and reset the car computer to validate service was done so assume this would be plug & play downloadable data to verify as I only have 2 x invoices to prove this.

The car is in excellent condition both mechanically & body work but I have exceeded the mileage by about 14k miles but the car has been for motorway driving and is immaculate bar wear & tear items such as stone chips on the front spoiler.

Can you perhaps advise how best I respond to their letter as they have requested me to arrange a collection date

Regards

Andy

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

It's not up to MBFS to decide whether you are entitled or not, its a legal right and once that right is invoked, then as above, no going back. They can't chase you for the extra payment, if they don't process your letter until some time later, that doesn't change the fact that you VT'd at an earlier date.

When you refer to the shortfall, is this the difference between what you have paid and the balance that makes up 50% of the total amount payable? If it is then yes you are liable to pay it but anything above that amount is not owed.

MBFS can only be compensated for damage beyond reasonable wear and tear. If the letter says any damage then that is not enforceable. You have to read the letter carefully and see what it says, as there is a huge difference in meaning when it says any damage to reasonable damage, and I'd be surprised if it said the letter referred to any damage but I haven't seen it so you have to make that judgment call.

As for your response it depends how you want to play it out. You could make an offer to repay the amount within a reasonable sum per month until it has been paid off and you could remind them that they are obliged to consider it where someone is struggling to repay a large sum in full in one payment under the FCA CONC rules.

Excess mileage is not claimable though they will say it is and thats a common dispute on this thread and its up to you if you want to pay up or argue that matter.

Make sure to take plenty of photos and and arrange a date for collection.

[Andyreed99]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Thanks again Rob!

I have emailed them this morning requesting their collections department stop sending DD mandates for rental payments as I have VT'd the vehicle last month and insisted that if they have flagged my credit file then to remove. The content is below that I sent this morning. I am about to email them dates they can collect the vehicle but below is the text from my email.

The leeter they sent that I am not signing does state" I am liable for any damage or excess charges" which does not fall into the reasonable wear and tear but does in other sections on another page state " The vehicle will be assessed on return of any damage affecting its market value". It also refers to the vehicle standards and visual examples which can be found in the "Contract End" section on their website. I have a booklet from my original agreement pack and it details quite well the standards regards to vehicle condition and shows and states size of scratches and wear and tear info so would be using that as a guide when the vehicle is inspected on collection. I will obviously take lots of photos and get date stamped with a newspaper as well as only sign for if happy with the condition report.

Can you please inform your collections department to stop sending me direct debit mandate forms requesting further rental payments. In addition any flags on my credit file need to be removed immediately

As stated and evidenced previously, I sent a notice of VT letter on 4/10/16 to MBFS and have a signed for receipt for 5/10/16. As it has taken 36 days for MBFS to contact me to arrange collection of the vehicle there is no longer any requirement for any further rental payments aside for me to arrange payment of any final balance after collection of the car.

I will be arranging with you suitable dates for collection shortly.

In addition, the letter sent to me dated 10/11/16 requiring me to sign a VT arrangement is not required as I have already given written notice which is the only document required to invoke termination.

Please confirm in writing within 14 days that any flag on my credit file has been removed. If I do not receive a response and a flag is still on my credit file then I will take legal advice

If I do not receive a response to either my email above or dates to collect then I see there are some stock responses in previous posts restating them of storage charges (That were contained within my original letter 4/10/16 of £25 a day)

Anything else you can give advice on?

I can probably pay the balance of £3379 in 2 instalments so hopefully they will accept?

Regards

Andy

[Christelle Mcdonagh]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Q . I believe I have paid over half off the car that we bought from car craft .. but car craft went into liquidation and administrators took over but how do I now volentary terminate the contract as our finances have changed and we have been struggling to pay it but haven't let any payments lapse as yet

Thank you for your email.

Trading at Carcraft ceased on 30 April 2015 across all sites in the Group immediately following the appointment of Administrators.

Carcraft records indicated that the monthly cost of servicing the DHP products exceeded £100,000 (in addition to the overhead and fixed labour cost base of the 10 Carcraft workshops). This on-going cost led to the immediate cessation of the DHP Service on the appointment of Administrators.

As a result of the DHP provision ceasing, Carcraft is not able to provide roadside cover, MOT, service or on-going warranty service. Nor is Carcraft able to settle any associated costs of the DHP customers. Any such costs will be an unsecured claim against the Carcraft estate.

The Administrators were unable to source an alternative to the DHP, as the costs of a comparable product were seen as prohibitively expensive. As such, customers regrettably will have to make their own arrangements for on-going roadside cover, MOT, service or warranty work.

[Sylwia]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

good morning
I need Your help. We voluntary terminated ouer car in Jun and I canceled my direct debet. We didt heard anythink from the company till September. I call them and told them that I want drop the car they agree to drop the car in Manheim auction house.
We done this on 5 September. In october i have letter from them that I own them money. I call them and i was told that I should ignore that letter becouse this car is in auction house. In November i call them again asking if thay have any news but i was told not to waried VT can take a year. In Dec. I got anather letter that i own them 824£ so I call them and i was told that they cant put the car on the auction becouse they didt have any documents from me i aske them to send me the paper to sign but they didt in sted thay send me letter that the car will be reposest.
Im sorry for my english i hope You can understend. Pleas help
Sylwia

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hello,

When you say you voluntary terminated, did you write to them and say this exactly you want to voluntary terminate or did you say surrender the car?

What is the name of the finance company?

It would be helpful to see what the letter says. Please could you upload and provide a link to the letter using this www.postimage.org, and remove your personal details.

[Hambo2017]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi rob I've been reading through your conversations and mine kind of relates to Jacques. I'm also with Ford credit and am looking at vting. I spoke with them earlier today and they have said that as I've gone over on my mileage by 15000 miles I will need to pay a excess mileage fee of £1080 something pounds. In my agreement termination: my rights, it states that as long as I've paid 50% of my contract and there are no major damages to the car I will have to pay no more. Then beneath that it sais about excess mileage and that if my agreement ends early for any reason, we will proportionately reduce the approved annual mileage for the purpose of the calculation of excess mileage charges. What is meant by this?

Hope to hear back soon
Alex

[Christelle Mcdonagh]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I've also seen this in my contract I would like to no what it means as well

[003746]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I have a question I'd love answered!
I have a PCP through VWFS- I am aware that once I have paid 50% of the contract I am able to VT. Does 50% include the balloon payment at the end? I am currently half way through my contract, however considering the balloon payment is 7k I have not paid 50% of the contract. Just a small matter but it would be helpful to know. Thanks!!

[Sylwia]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi Rob
whan I wroted the letter I did use your template for VT. and it was with big capitol letter. The company name is BARCLAYS Partner Finance.
https://postimg.org/image/u1ve7na7n/
https://postimg.org/image/a6y32tg47/
i hope i done right . Thank you

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi Sylwia, I am a bit confused, do you still have evidence that you wrote to them and temrinated the agreement? The letter you posted appears that they claim you missed payments.

[Sylwia]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I should have still the letter whan i will be at home i will find them. I know that, but im really dont know what to do now. Whan i spoked with tham thay know that the car is Vt thay agree with that, but thay still ask me for paper which i didt get any from tham

[Sylwia]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

hi Rob I just spoked with Barclays and i was told thay need documets (permission for seling ouer car). Thay gone send me and I should recived them by Tuesdey. whan i will get them i will send to You first .