Vehicle Contract Hire early termination

[davidebt]

Hi, just over 12 months ago I entered a vehicle contract hire agreement (service included) for a three year term with 3 payments up font followed by 35 payments. In early June of this year I was diagnosed with and inoperable and incurable Lung Cancer and was forced to give up self employment.
Being concerned that I would not be able to keep up payments on the vehicle, I contacted the Finance Company at the earliest convenience to establish how I should proceed.

The person I spoke to was very sympathetic and told me to send proof of my diagnosis and they would arrange early voluntary termination of the contract. I offered other option such as perhaps shifting the contract to a cheaper or older vehicle but was advised that it was not necessary as "I had enough on my plate to worry about". The person I spoke to (name withheld) sent me a blank email for me to to respond to which I did straight away with a copy of my Hospital Diagnosis Report and thanking them for their sympathy with early termination. I immediately receive an automated response telling me how important my email was and that I would receive a reply within 3 working days. I received no reply. A week later sent a follow up email stating that I had not received a response to my first email and confirming that I had booked the vehicle in for its 12 months service as per contract and that I would be making my final payment on 15th August, and also that the vehicle would be available for collection at a date as advised by them after 3rd August. Again I received an automated response advising me how important my email was and that I would receive a reply within 3 working days. I received no response.!

Today I made a telephone call to the Finance Company asking to speak with the person who I had been dealing with. I was advised that he was at his desk but on another call but my message would be passed on and he would call me straight back. I have received no call.

The conclusion I have arrived at as a result of the Finance Company's failure to respond is that I believe the person I spoke with had "overstepped his authority" by agreeing an early termination and that they are now trying yo avoid any contact with me as this would be seen as acknowledging their agreement to early termination for medical reasons.

Any advice on how to proceed from here would be extremely welcome. I know that under the Consumer Credit Act that I have the right to Voluntarily Terminate my Hire Agreement after I have paid more than 50% of the sum owed but this still leave me with waiting and making a further 6 payments before I get to this stage and I also understand that VT's are full of other problems such as normal wear and tear etc.


Any help or advice would be gratefully received.

David

ADMIN: I have posted this under motoring and court. Please delete one as necesary

[TrevorJ]

Hi David,

In a nutshell, Contract Hire is NOT a Consumer Credit Agreement which in many cases has a Voluntary Termination rights/clauses in it, Contract Hire is exactly what it says on the tin, 'Contract Hire' (No half's & thirds rules) contracted for an agreed period of time, with an agreed terminal mileage, also optional servicing element at extra cost.

You will need to engage with the lender/finance provider (evidenced in writing), they can not avoid you, you still have rights, and they still have an obligation to treat you fairy under the FCA's TCF policy.

You will need to start the evidencing process off and allow proportionate time to respond, with their final response, Hope this helps

[davidebt]

Hi David,

In a nutshell, Contract Hire is NOT a Consumer Credit Agreement which in many cases has a Voluntary Termination rights/clauses in it, Contract Hire is exactly what it says on the tin, 'Contract Hire' (No half's & thirds rules) contracted for an agreed period of time, with an agreed terminal mileage, also optional servicing element at extra cost.

You will need to engage with the lender/finance provider (evidenced in writing), they can not avoid you, you still have rights, and they still have an obligation to treat you fairy under the FCA's TCF policy.

You will need to start the evidencing process off and allow proportionate time to respond, with their final response, Hope this helps

Hi Trevor the Contract very clearly States "Hire Agreement Regulated by the Consumer Credit Act 1974'

[Amethyst]

I Think it confused things calling it contract hire as you also mentioned being self employed it could have been a business lease vehicle.

Im sorry to hear of your health issues, its good you are trying to get this sorted out when you must have so much more to deal with. It sounded like it started off so well and then the company have just gone silent on you. Do you have any insurances which might be able to cover the amount up to the half way point ?
Are the termination figures listed in the agreement ?


I'll tag R0b in to have a look - can you say who the finance is with ? ( they have different foibles which might assist )

[R0b]

Consumer hire agreements are regulated by the Consumer Credit Act and I believe this extends to sole traders.

Strictly speaking, there is a right to terminate under a hire agreement although it is more restricted than the provisions for hire-purchase agreements. You can only terminate the hire agreement after 18 months - this does not mean that you have to give notice after 18 months but the agreement cannot expire until 18 months has elapsed from the date of the agreement.

However, the right to terminate is only available provided that the total payments in any 12 month period does not exceed £1,500.