Needing a bit of advice on Voluntary Termination

[AdamV123]

Hi there,

I would like a bit of guidance with regards to a voluntary termination.

a bit of background is I bought the car on HP over 5 years with GMAC as my finance company. I have had the car coming up 3 years and I definitely qualify to VT, I have rang GMAC and they have sent me out some forms to fill in and send back (after reading other threads I will not be doing this!), in the forms it explains that I will be charged for collection, damages etc etc. However on the form it says it will cost me nothing to VT, but it does say that I need to pay £323 in 'additional charges', now the opening balance was £669 for the additional charges and I have paid £345 to date. I have checked my original invoice for the car and the only things that equal £669 together are warranty (which I believe was for a year) which was £500 and then £169 interest for the warranty. Both of these amounts have been factored into the full amount of the car.

I am just after some advice/guidance on my next step?

thanks in advance,
Adam

[R0b]

Re: Needing a bit of advice on Voluntary Termination

If the warranty is factored into the total amount payable under the agreement then you are not likely to be liable for it, since your only liable for 50%. So providing it is not a separate agreement and your not paying a separate DD on it then you should be fine.

[AdamV123]

Re: Needing a bit of advice on Voluntary Termination

Thanks for the quick reply!

Yeah ahh on the original breakdown of charges it's all added up into the overall charge for the car.

would you recommend going back to GMAC to argue this?

thanks again.

[R0b]

Re: Needing a bit of advice on Voluntary Termination

Certainly, GMAC seem to be all smoke where they try to attempt to enforce any right to an alleged debt. Their usual MO is to pass it straight to Shoosmiths for them to recover, though if you do a search of GMAC threads Shoosmiths tend to hand it back or do nothing if you robustly deny it is owed.

[AdamV123]

Re: Needing a bit of advice on Voluntary Termination

Thanks again, that's great.

Ill ll just make sure I stick to my guns, i have it in writing in front of me that it's all factored into one amount. I thought this was correct.

Also, with regards to the cost they are saying for the recovery of the vehicle, am I right in thinking that they can't charge me?

And, with regards to damages what am I obliged to pay? The car is 7 years old, it doesn't have any major damage at all, a couple of minor scratches here and there and a mark on the wheels or 2. But for a 7 year old car I think it's in fair condition and is also low mileage for its age.

sorry for the questions, I appreciate the advice,

thanks again,

Adam

[AdamV123]

Re: Needing a bit of advice on Voluntary Termination

Hi,

needing a bit of advice again,

so I sent off my letter to voluntary terminate to GMAC via tracked and recoded mail, I was notified this morning from Royal Mail to say it had been signed for by GMAC. I rang GMAC and was put through to the VT team and the letter hasn't got to them yet. I said I would cancel my direct debit but the woman advised that I waited till they have it.

My next direct debit is due to come out tonight at midnight and I was hoping that I wouldn't have to pay this.

what would be the best plan going forward?

thanks in advance

[R0b]

Re: Needing a bit of advice on Voluntary Termination

Why leave it so close to the deadline for the next payment? Is your payment date today or tomorrow? If its today, you owe them the next payment, if its tomorrow then you don't owe them anything else.

This is on the assumption that your letter said that the agreement terminates immediately. If it suggests anything longer then you will owe them the next instalment.

[AdamV123]

Re: Needing a bit of advice on Voluntary Termination

Basically I was waiting for the V5C to come back after taking a private number plate, I sent the letter late last week and it was received today. I pay the money on the 17th, so will be tomorrow. Oh the letter I sent I said to terminate with immediate affect.

like I say, GMAC have signed for the letter with Royal Mail, however it hasn't reached the forest department yet.

[R0b]

Re: Needing a bit of advice on Voluntary Termination

It is irrelevant of whether the correct department receives it on a later date or deals with it at a later time, you are only required to give notice to the lender. As soon as that lands at reception or their mailroom and signed for, that is deemed to be served.

[AdamV123]

Re: Needing a bit of advice on Voluntary Termination

Okay great. So I can cancel my direct debit now and then I won't owe tomorrow's payment?

The woman on the phone from GMAC was helpful and polite but said she wouldn't cancel until they have it but GMAC 100% have my letter somewhere

[AdamV123]

Re: Needing a bit of advice on Voluntary Termination

Sorry to message again, but if I cancel my DD now, and the correct department don't get my letter till tomorrow. Could they argue that they hadn't received it and then try to charge me anyway? Or say I've defaulted on a payment?

[R0b]

Re: Needing a bit of advice on Voluntary Termination

You only need to serve notice on the lender, not a specific department within its business. Its up to you whether you cancel tonight or tomorrow I cant give you that answer.

[AdamV123]

Re: Needing a bit of advice on Voluntary Termination

Hi,

so an update on my situation, VT has gone through fine, Mannheim are going to be In touch regarding my car. I had a phone call from GMAC today regarding what I owe.

so when I first received a letter from them I owed £0.00, but additional extras was £323.53. On my initial invoice for the car the extras were added into the overall payment. I only pay one monthly direct debit payment of £300.

the woman from GMAC today said that they paid for the Gap insurance at the start of the agreement, and that £11.50 of my monthly payment pays for that. I've never had a breakdown of my monthly payment, and I only pay the one DD.

does anyone know anything about this? Or has had the same thing?

Thanks in advance.

[R0b]

Re: Needing a bit of advice on Voluntary Termination

the GAP is usually rolled into your total amount payable on the agreement, so arguably it is not a separate agreement when you VT for which you are liable for. They would have calculated the GAP and added it to the sale value of the car and the calculated their interest on the total amount. The higher the total amount payable means the more interest is added to it so they can't have it both ways.

As I have said before on here, if it was a separate agreement then why didn't they provide you with separate documentation and set up a separate direct debit for it?

[AdamV123]

Re: Needing a bit of advice on Voluntary Termination

Thanks again Rob for the quick reply.

thats what I thought about the seperate agreement, until today I had no idea that part of my payment went towards this.

what would be the best steps for me going forward? What would be my argument back to them regarding this outstanding money they are after?

Thanks again