Voluntary termination of hire purchase

[R0b]

Re: Voluntary termination of hire purchase

Hi Michelle, you just need to put that in writing and tell them you wish to make a formal complaint. You will need to outline exactly what you have said here and that they are aware that you have VT'd which limits your liability. You consider that their grounds for seeking such sums are unfounded and consider it to be deceit and/or fraudulent misrepresentation. You require a full explanation as to why the charges have suddenly increased and why there is reference to the sale of the vehicle offset against the proceeds when you voluntarily terminated under s.99

They should in theory take off the charges but they might try their luck with you and at that point you could then report them to the FCA as well as taking it to the Financial Ombudsman.

[Michellec80]

Re: Voluntary termination of hire purchase

I'll do that today. Thanks for your help.

[Michellec80]

Re: Voluntary termination of hire purchase

Hi. I called them this morning. They said they "mistakenly" put on our file that we had gone for a "Voluntary Surrender". They said they'd amend our account and send new details of any money owed. I still think they'll be after quite a few quid, but I'm ready to fight them. Thanks for your advice [MENTION=71570]R0b[/MENTION]. You've been a massive help so far.

[R0b]

Re: Voluntary termination of hire purchase

No worries, I expect them to come back at you for more money.

[Michellec80]

Re: Voluntary termination of hire purchase

They have. Just received this via email.

"Following your recent request to Voluntary Terminate your above numbered agreement with us, the vehicle has now been returned and inspected. We are now able to determine the remaining liability (if any) in respect of this matter.
The amount outstanding is set out below:

Amount required to bring account to 50% of total amount payable calculated under Section 100 (1) of the Consumer Credit Act 1974 (plus any outstanding arrears, if applicable):


£185.25

Balance of any optional insurance still payable (not included in Voluntary Termination)


£161.29

Cost of repairs required to bring vehicle to a satisfactory standard under Section 100 (4) of the Consumer Credit Act 1974:

£72.00

Other Costs (i.e. collection etc.):


£80.00

Total amount payable:


£498.54

Since your request to voluntarily terminate your agreement, you have paid to date £0.00, which brings your balance to:

£498.54

Please call Advantage Finance Ltd as a matter of urgency, to make arrangement for payment on your account."

[R0b]

Re: Voluntary termination of hire purchase

Hi Michelle,

Have they explained what the repairs are for?
Collection fees are unenforceable, as for the optional insurance, this may be chargeable depending on how they have incorporated it into the agreement. If you have been paying one price then it is arguable that it forms part of the total amount payable.

You should know whether the other £185 charge for bringing the balance up to date is required or not.

[Michellec80]

Re: Voluntary termination of hire purchase

If the £185 is arrears I can see why that has been added. If it's to bring it up to 50% of the total to allow us to VT, I can't see why it has been added. We paid over 50% when we requested to VT.

There are no further details regarding the repairs. I'm going to email them to ask for more info.

We were paying one price of £188 p/m.

The £80 is unenforceable but if it is included in the total how do we make them agree to remove it or do we just not pay that? Thanks.

[Michellec80]

Re: Voluntary termination of hire purchase

I emailed them and this is the reply:

"With regards to your correspondence following your decision to Voluntary Terminate your agreement and hand back your car.

It would appear that you remain confused as to why there is an outstanding balance still to pay to complete your account.

At the point of voluntary termination you are required to be at the half way mark of your agreement should you choose to proceed before this point or if there are any arrears on your account payment is required to bring your account to this point

At the point you decided to proceed with the voluntary termination the account was in arrears, this figure was provided to you before you opted to continue with the voluntary termination and would be liable by yourself.

If you purchased any insurance products, other than GAP Insurance, at the same time as your motor finance, these will remain payable. In the case of GAP Insurance the policy will be cancelled upon the termination of the agreement and a pro-rata
refund will be applied, which will mean that no further sums will be payable (other than arrears) in respect of the policy.

With regards to the repairs requires to the vehicle please refer to section 100 of the consumer credit act (4) If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have the effect accordingly.

Should you also be in receipt of an original condition report of the vehicle when purchased this can also be produced to show that the vehicle has been kept in original condition.

With regards to the collection of the vehicle we were able to offer a local drop off point for you to deliver the vehicle to as this offer was not taken up we are able to charge a reduced collection fee for our service.

I hope this clarifies matters for you this time, if you have any further issues please refer to the Asset Recovery Team"
—————————————————
We are certain that we paid over 50%. When we first enquired about VT they themselves said we had. I'm not sure why they are saying we have not. I knew they'd be difficult but didn't realise they'd be this bad!

[Michellec80]

Re: Voluntary termination of hire purchase

Further to my previous post.

I've emailed the lady back basically telling her I'm not done yet. I took the final few lines in her email as "you owe us money and I am not willing to discuss it with you so contact debt recovery and don't contact me again!".

This isn't over.

[R0b]

Re: Voluntary termination of hire purchase

Hi Michelle, I'll get back to you on this later but the easiest thing to do is work out how many months you have paid and whether this meets the 50% total amount payable.

You should ask for an email address for the asset recovery team as you are not willing to discuss this in person and only correspond in writing or alternatively give an address so you can write a letter to them.

[Michellec80]

Re: Voluntary termination of hire purchase

Hi R0b. Thanks for your reply. I'll do anything you suggest. I have already requested a print out of all payments made by us as I am 100% certain we've reached 50% at least. I'll sit down with my paperwork and go through it all again to double check. I can remember talking to a lady on the phone back in December when we were first thinking about a VT and she confirmed it. I'm hoping that conversation was recorded and is still on file somewhere. I will request an email address. I have a feeling that the lady I have been emailing may not be willing to help me any further.

Thanks.

[Michellec80]

Re: Voluntary termination of hire purchase

Hi. Just had a look. I've made 31 payments of £173.25. That is a total of £5370.75. On the contract it states that half of the total amount payable is £4333.00. Unless I am being being very stupid, that means we have paid over 50%. They have made an error. Accidental or otherwise.

[dutta007]

Re: Voluntary termination of hire purchase

Hi,

I am wondering if you can help me? I have a car finance agreement with Renault finance. Unfortunately I have got myself in a financial mess and cannot keep up with payments. it is a 48 month agreement I have 32 payments to go. I contacted Renault they said that I can terminate my contract. they will send me a default notice and then collect the car they will sell it in auction and then I will have to make up the difference of the settlement figure. the settlement is way over what the car is worth. Having read up on this I understand I can serve voluntary termination. I was going to wait until novemeber when I will be half way through but even with help I will struggle. I understand from further reading I don't have to wait until half way through but will be liable for 50% costs of the total aount.

my concerns are that I have missed three payments Renault had agreed to spread these cost over the next three payments. if I serve VT will this be void due to the arrears? or o I need to wait until payments are up to date before I submit my VT?

any advice would be appreciated.

thanks

[R0b]

Re: Voluntary termination of hire purchase

Dear Sir/Madam,

Thank you for your email, your comments are noted.

It is disputed that the account at the time of terminating the agreement was in arrears. I have made 31 monthly payments totaling around £5,370.75 whereas half the total amount payable is £4,333.00 which means that the threshold has been met and I owe no further sums under the agreement. If you believe this to be incorrect, please clarify which month before termination that you believe I have missed.


You have also referred to s.100 of the Consumer Credit Act in respect of the cost for the repairs carried out but you have so far failed to show that (a) the repairs were in fact carried out and (b) what the repairs were for. Whilst it is acknowledged that creditors may recover sums under s.100 I must remind you that the onus is on you to prove that the repairs to the car were required as the car was less than a reasonable condition but also evidence that the repairs were actually carried out. Creditors cannot simply demand a sum of money without any evidence to show that the vehicle was in an unreasonable condition as specified in the Act.

You are unable to levy collection charges as they incur further liability which is contrary to s.99 of the Act and is therefore void.

I also note that you say that I should contact the Asset Recovery Team however I am only willing to correspond in writing so please could you supply me with an email address or an address which they can be contacted on. To clarify, I do not wish to deal with this matter over the telephone but in writing only.

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Michelle, do you have any comments on the point below? To me it sounds like they are saying that a inspection took place at the time of entering into the agreement which you have a copy of - is this true?

Should you also be in receipt of an original condition report of the vehicle when purchased this can also be produced to show that the vehicle has been kept in original condition.

[Michellec80]

Re: Voluntary termination of hire purchase

Hi R0b. Thanks for the letter/email template. I'll send that soon.

I can confirm that no inspection took place when entering the agreement other than me looking around the car and taking it on a test drive. I have no paperwork that says an inspection took place and I didn't sign anything other than the HP agreement. Other than the usual wear and tear and maybe in need of a good was and polish, the car was in the same condition as it was when we entered the agreement. The mechanical fault I thought had occurred turned out to be nothing.