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Re: CLS car finance please help
I would remove your personal number from your post, this is a public forum.
In short, their response appears to acknowledge that you have the right to terminate at any time and in turn must therefore accept that having given your notice to terminate the agreement terminated with immediate effect, whether by email or upon receipt of the letter according to normal postal rules.
Their reply to section 100(1) is irrelevant, as I don't think you are disputing the fact that there is an outstanding amount to pay, but the manner and how much should be paid. They mentioned the next contractual payment but the agreement is terminated so you are not obliged to make a payment on 21 December rather you need to come to an arrangement to repay the difference required. Was this the date on which you made your monthly instalments? I can't see how they can agree unilaterally that payment must be made on this date if you didn't agree to it in the first place, unless you did agree. Section 100(1) simply what you are liable for but it doesn't mean that it must be paid immediately before termination of the agreement can be effected or accepted by CLS.
The other point is that they are regulated by the FCA and therefore have to comply with certain rules with consumers. The FCA CONC Handbook says that (CONC 7 - Arrears, default and recovery), lenders must have due regard to its obligations to treat customers fairly when they are in arrears (7.3.2), must treat customers with forebearance and due consideration when in difficults with arrears/debt (7.3.4), should allow the customer a reasonable amount of time to repay the debt (7.3.6) and more importantly, not to pressurise a customer to repay a debt in one single amount or very few amounts where those amounts are unreasonable large and/or would have an adverse impact on the customer's financial situation (7.3.10).
The references to all of the above can be found here -> https://www.handbook.fca.org.uk/handbook/CONC/7/3.html
There might be more but you will see on that link there is reference to an "R" and a "G". Reference to "R" is a rule and therefore a legal obligation whereas a "G" is guidance which is not an obligation but gives an example as to how lenders should comply. Arguably if they are in breach of any of the rules, that could give rise to an unfair relationship.
You can complain to the FOS if you want, but perhaps it might be worth writing back to CLS and pointing out these failures and addressing the points they have raised with what you have commented on. Offer them the opportunity to reconsider their decision but if they insist then you will go to the FOS and also seek compensation for the difficulties and obstructions that CLS have put up when you tried to exercise your right to VT.
There's probably some more things I've missed off but thats a starting point and if you want to post up a draft response, happy to look over it and give feedback before you send it off.
I would remove your personal number from your post, this is a public forum.
In short, their response appears to acknowledge that you have the right to terminate at any time and in turn must therefore accept that having given your notice to terminate the agreement terminated with immediate effect, whether by email or upon receipt of the letter according to normal postal rules.
Their reply to section 100(1) is irrelevant, as I don't think you are disputing the fact that there is an outstanding amount to pay, but the manner and how much should be paid. They mentioned the next contractual payment but the agreement is terminated so you are not obliged to make a payment on 21 December rather you need to come to an arrangement to repay the difference required. Was this the date on which you made your monthly instalments? I can't see how they can agree unilaterally that payment must be made on this date if you didn't agree to it in the first place, unless you did agree. Section 100(1) simply what you are liable for but it doesn't mean that it must be paid immediately before termination of the agreement can be effected or accepted by CLS.
The other point is that they are regulated by the FCA and therefore have to comply with certain rules with consumers. The FCA CONC Handbook says that (CONC 7 - Arrears, default and recovery), lenders must have due regard to its obligations to treat customers fairly when they are in arrears (7.3.2), must treat customers with forebearance and due consideration when in difficults with arrears/debt (7.3.4), should allow the customer a reasonable amount of time to repay the debt (7.3.6) and more importantly, not to pressurise a customer to repay a debt in one single amount or very few amounts where those amounts are unreasonable large and/or would have an adverse impact on the customer's financial situation (7.3.10).
The references to all of the above can be found here -> https://www.handbook.fca.org.uk/handbook/CONC/7/3.html
There might be more but you will see on that link there is reference to an "R" and a "G". Reference to "R" is a rule and therefore a legal obligation whereas a "G" is guidance which is not an obligation but gives an example as to how lenders should comply. Arguably if they are in breach of any of the rules, that could give rise to an unfair relationship.
You can complain to the FOS if you want, but perhaps it might be worth writing back to CLS and pointing out these failures and addressing the points they have raised with what you have commented on. Offer them the opportunity to reconsider their decision but if they insist then you will go to the FOS and also seek compensation for the difficulties and obstructions that CLS have put up when you tried to exercise your right to VT.
There's probably some more things I've missed off but thats a starting point and if you want to post up a draft response, happy to look over it and give feedback before you send it off.
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