Voluntary Termination- Close Motor Finance

[phillg1986]

Hi,
I voluntarily terminated my HP agreement with the above company. I was just short of the 50% mark which I paid up when I returned the vehicle to the finance company office and was given a slip of confirmation of VT. I didn't have to sign any condition report etc, just the confirmation. I have now recieved a demand letter from them saying my payments are overdue and I need to make up the difference from the sale of the car to the value of the outstanding finance. A total of about £2200 roughly. Is this correct what they are asking for? The statement doesn't list any charges for damage or excess mileage etc.
Thanks
Phill

[R0b]

Re: Voluntary Termination- Close Motor Finance

Hi Phill,

Short answer is no, and the letter claiming they are is deceitful and fraudulent. Can you supply us with a copy of the letter, personal info redacted?

If you go to https://postimage.org/ and then upload your photo, copy and paste the link for thumgnail for forum.

[phillg1986]

Re: Voluntary Termination- Close Motor Finance

Hi Rob,
Thanks for getting back so quick! I'm going mad as been working so hard to sort credit rating out and now I get this!

[img=https://s31.postimg.org/666tvffdz/image.jpg]

Cheers
Phill

[R0b]

Re: Voluntary Termination- Close Motor Finance

Wouldn't worry too much just yet, but I would keep an eye on your credit rating for the time being.

Send them a letter explaining that the agreement is terminated therefore Notice of Sums in arrears cannot apply and your request for the remaining sums under the agreement is considered fraudulent and you shall be reporting their behaviour to the FCA.

Example letter below, adjust as you need.

Dear Sir / Madam,

Re: Voluntary Termination of Hire Purchase Agreement (No. XXXXXX)

I am in receipt of your letter dated [DATE] concerning a Notice of Sums in Arrears to the amount of £2,789.69 which is the remaining balance of the agreement. I am somewhat perplexed as to this letter because I wrote to you on [DATE] giving notice to terminate the agreement under section 99 of the Consumer Credit Act. I returned the vehicle to [LOCATION] and received a slip confirming that the agreement was terminated.

I am not liable for amount stipulated in the Notice of Sums in Arrears letter because my liability is limited to 50% of the total amount payable and you ought to be aware that this is the case. Therefore I consider your demand for the sums contained in the letter as fraudulent and deceitful, and I will be reporting this matter to the FCA as regards to your conduct.

You are also put on notice that should I become aware of any default applied to my credit report due to the Notice of Sums in Arrears, I shall commence legal proceedings without further notice against you for breach of data under the Data Protection Act 1998 and in particular, Principle 4. The purpose of such proceedings will be a claim for damages against you for a failure to accurately report data as part of your statutory obligations.

Please confirm by return of your acknowledgement and that the sums stated in the letter do not apply.

I look forward to hearing from you in due course.

[phillg1986]

Re: Voluntary Termination- Close Motor Finance

Thank you Rob
I feel a bit happier now! God knows what they think they are playing at. Hopefully this sorts it and I don't end up with a ccj
Cheers
Phill

[R0b]

Re: Voluntary Termination- Close Motor Finance

They would have to take you to court for a CCJ but that won't happen if you keep the documents safe and your evidence. I would also suggest reporting them to the FCA anyway because that should not be tolerated, the FCA don't take on individual complaints but they may monitor the situation if enough complaints are raised.

I would probably write to them rather than email the FCA which is 25 The North Colonnade, London, E14 5HS. If you do wish to email you can do so at consumer.queries@fca.org.uk

Just explain that you acknowledge they do not take on individual complaints however you thought they ought to be aware of this matter as they are in breach of their obligations under the FCA rules in trying to fraudulently or at the very least, deceitfully obtain monies which they are not entitled to. Explain you voluntarily terminated under s.99 which limits your liability to 50% (attach letter and your VT slip) yet they are trying to claim sums for the full amount of the agreement and this cannot be condoned.

Up to you though