• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

Voluntary Termination Question

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Voluntary Termination Question

    I am looking to carry out my right for early termination of my HP car finance, but wanted a little advice on how I go about it. I know that I need to send a letter once my payments have exceeded 50% of the cars value. What I wanted to know it whether I could apply with one more payment to go? My goal is to apply at the beginning of Feb19 with one more payment due on the 17th of that month which makes it 50%. Would you recommend I wait and avoid showing my hand, or would this offer be acceptable? Thanks I’m advance. Rob.
    Tags: None

  • #2
    I know that I need to send a letter once my payments have exceeded 50% of the cars value.
    A common misconception which both debtors and finance companies get wrong. VT is not conditional on paying 50% of the total price, rather you can terminate at any time i.e. 6 months' into the contract but if you haven't paid 50% then you will be liable for the remaining balance (as a debt).

    I see a lot of finance companies refusing to process or accept a termination notice on the premise that debtors have not yet reached the 50% mark. That should be a real concern for them because they run the risk that they are in repudiatory breach with the result that debtors are entitled to accept (usually by giving notice) and then are discharged from all obligations and entitled to claim damages as if the contract had been performed - for example, the car transferred into your name or the value of it.

    I haven't really suggested going down the route of repudiatory breach on the forum but it seems to become more appropriate with certain companies who (appear to) have a policy of refusing to accept a VT letter unless certain conditions apply.
    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

    View our Terms and Conditions

    LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

    If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


    If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.
    Working...
    X