Voluntary termination

[Sonixtraa]

I have voluntary terminated my car finance and was told it couldn't go ahead until I had signed the documents that they sent and then they would collect the car. They wouldn't accept the voluntary termination until the car had been collected. The car has now been collected. I phoned today and asked for it to be put in writing that the contract was now ended. They said that I don't owe any money (I recorded the phone call) but that they would up date me once the car had been sold at auction. I told them that this is isn't right and that I would be speaking to the ombudsman. Is this right? Should I be worried? All I have is the form that I signed and where the fella who picked up the car signed. I don't have any other proof to say the contract is over. Is this legal? Any help and advice would be appreciated. Thanks

[Sonixtraa]

rob

I have read your booklet pdf on voluntary termination, but there does not seem to be anything on this matter that the finance company are refusing to give a final letter and that they say they will not close the account until the car has been sold at auction. I told them that's got nothing to do with me and that I have already voluntary terminated my finance agreement and the car has been returned. The advisor just said that my account is under investigation (all due to them on several occasions saying that they had sent my car's details to BCA,then BCA saying they hadn't received it.) she just went on saying when the car was sold by auction they would update me and close my account. I told her that was illegal. She said that's their procedure. I just want something in writing to say I am out of contract. P. S. THEY didn't inspect my vehicle when they picked it up either, they just took it. Luckily I had taken photos and video of my car

[R0b]

Hi

Unfortunately, your only real recourse would be to start legal proceedings but by the time you even get a date for the hearing the reality is that the car would have been sold by then.

I don't think it is unreasonable for them to have your account on their system remain open until the car has been sold and confirmation of any damage has been assessed, but I think we need to differentiate between that account and the account listed on your credit file as remaining open which I presume is the latter you have concerns with.

Strictly speaking, they should notify credit agencies that you have exercised the right to VT and that should trigger a closing of the account with a VT marker to confirm the month in which you terminated. No lender I am aware of does that and will always keep it open because I believe their systems are set up so if there is a charge they are trying to recover from you, they might report it as a late payment or a default marker - that would be unlawful and give rise to you bringing a compensation claim for breach of data protection laws.

I wouldn't worry about any suggestion that they are yet to accept the voluntary termination notice because you have already done that and they have accepted that by collecting the car. Your right to VT is not conditional upon anything other than giving notice in writing.

My only concern would be, did you sign their papers or not because usually there is something in there that says you agree to pay for any damage found beyond reasonable wear and tear, which potentially puts you in a sticky situation.

[Sonixtraa]

Yes i signed the paperwork saying that I would pay for anything outside of the fair wear and inspection report, which I was supposed to sign when they picked up the car. They sent a pdf of things deemed beyond fair wear and tear. I have photos of the car. Also due to some mess up between BCA and finance company there was no inspector. Therefore I couldn't sign anything of the state of the car when they picked it up. But I have my own photographic evidence because I knew this was happening (no-one was coming from the auctions company, it was the finance company who picked up car). Sorry this is long-winded, buts that's 'apparently' and why my account was under investigation due the mess up.
Thanks for your reply Rob and I will update the forum if anything comes up. You have sort of put my mind at rest a bit. Thanks and have a good evening.

[HariSeldon]

Yes i signed the paperwork saying that I would pay for anything outside of the fair wear and inspection report, which I was supposed to sign when they picked up the car.

There's nothing you can do about this now but that was a mistake and I only highlight this for the benefit of anyone else reading this thread who finds themselves in a similar position.

The only thing you had to do was notify them in writing of your intention to Voluntary Terminate the contract and then subject to a reasonable notice period, having taken reasonable care of the car and you having paid 50% of the contract then that would have been the end of your obligations.

The problem with signing paperwork that you didn't have to is that we don't now know what you've agreed to. For example you may have now agreed to cover any auction shortfall due to what they consider excessive wear and tear. Hopefully that won't be the case but for anyone else reading this, simply refuse to sign any additional paperwork and repeatedly advise the finance company that you have given notice to VT, you will not accept any liability after the notice period and it's entirely up to them whether they collect the car or not.

[Pezza54]

Surely an inspection of the car should have been carried out by the finance company when the car was picked up. A marked diagram of the car showing positions of dents etc agreed with OP and both the inspector and OP to sign it. As the finance company failed to undertake this inspection at the appropriate time then OP can argue that the damage to the car was caused after they handed back the car.
Since handing back the car OP has received a report listing items that the fc believe are beyond fair wear and tear. OP has not said that their photos (taken on the day of handover) prove that damage to the car must have happened after they handed the car back.
It sounds as if the fc is waiting to find out how much the car sells for before trying to charge OP for damage beyond fair wear and tear.
If OP believes the inspection report is wrong for the time the car was collected, OP should dispute the report asap