Voluntary termination of hire purchase

[Michellec80]

Re: Voluntary termination of hire purchase

It seems as if they've ignored that letter. I've received another letter from them today.

[R0b]

Re: Voluntary termination of hire purchase

Hi Michelle,

I would ignore them. Or respond and say you have submitted your complaint to the ombudsman and expect all letters to cease until conclusion.

You can download the Ombudsman Complaint Form here -> Complaint Form
Below is a sort of templace you can use for your complaint, I have attached the relevant sections of the CCA to this post. You will need to fill in the background about when you entered into the agreement, when the car was returned and up to the present day. Doesn't need to be extensive but key information will be useful. The form is very easy to fill in and the below information will need to go into the section that says "Please tell us about your complaint"


------------------


Background



Charges imposed by Advantage Finance Limited
Since the vehicle has been returned, Advantage Finance stated in a number of letters that I owe the following monies:

1. £185.25 to bring the account up to 50% of the total amount payable

2. £72.00 for alleged damage to the bumper

3. £161.29 for insurance policy cancellation

4. £80 collection fees

Total amount payable = £498.54

Law relating to the Consumer Credit Act 1974
Section 99: a debtor has the right to terminate the agreement by giving notice to the creditor who is owed the sum of money at any time prior to the final payment under the Agreement.

Section 100: where the debtor terminates the agreement in accordance with section 99 of the Act, the debtor’s liability is limited to one half of the total price set out in the agreement. If the goods have not been returned in a reasonable condition, the amount may be increased.

Section 189: the definition of ‘total price’ means:

the total sum payable by the debtor under a hire-purchase agreement or a conditional sale agreement, including any sum payable on the exercise of an option to purchase, but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement

Section 173: where a term in a regulated agreement which is inconsistent with any provisions of the CCA, which protects the debtor, is void. This section further clarifies that where a provision specifies a duty or liability on the debtor, the term under the agreement is void if it imposes directly or indirectly an additional duty or liability


Furthermore, in The Law of Consumer Credit and Hire textbook, it explains that a creditor is entitled to half of the total amount payable, including any monthly instalments which were due at the time of termination and the maximum liability is explicitly restricted to half the total amount payable.


Reasons why I should not pay the sums owed

£72.00 charge for damage to the bumper
As I have pointed out above, section 100 of the CCA states that the debtor may only claim compensation where the car was not returned in a reasonable condition. As I already pointed out to Advantage, the bumper already had a crack on the vehicle at the time I took possession of the vehicle. Advantage did not carry out an initial inspection prior entering the agreement and so they are not able to prove that the damage has been caused by myself. Advantage therefore cannot charge for something which did not happen whilst the car was in my possession.

£70 charge for collection of the vehicle
In relation to the collection charge, it is clear that a debtor’s liability is limited to one half of the total amount payable bit virtue of section 100 of the CCA. The definition of ‘total price’ confirms that a debtors liability is restricted to half the total amount payable but explicitly excludes any damages or compensation for breach of contract. Because the collection fee is a contractual term and did not form part of the monthly instalments, Advantages cannot lawfully charge for this. This is also confirmed in section 173 of the CCA which confirms that a contractual clause is void and unenforceable if it imposes additional liability on the debtor.

£161.29 for insurance policy cancellation
The insurance policy was incorporated into the total amount payable, and I paid one monthly sum which included the insurance. Therefore, Advantage cannot claim this insurance cancellation amount as I have already paid 50% of the total amount payable and again is contrary to section 173 of the CCA.

£185.25 to bring the account up to 50% of the total amount payable
I accept that I am liable to pay this amount which I have offered in full and final settlement but this has been refused.


Conclusion
On the existence of facts, evidence and the applicable law under the Consumer Credit Act, I ask the Ombudsman to conclude that:

1. The vehicle was in a reasonable condition at the time it was returned to Advantage and that the cracked bumper was already there when I took possession.

2. Advantage cannot enforce the charges other than £185.25 which is the outstanding payment relating to one month in arrears.

3. The Ombudsman make an award of costs against Santander, calculated as follows:

(a) £25 administration costs relating to the overall complaint pursuant to DISP 3.7.9;

(b) £40 resulting in the inconvenience of the complaint, Santander providing inadequate responses as well as taking additional unnecessary steps to pursue the complaint in accordance with DISP 3.7.2 R; and

(c) any other award as the Ombudsman sees fit.


I enclose the following evidence as part of my complaint:

1. Hire Purchase Agreement dated [DATE]

2. Consumer Credit Act 1974 sections 99, 100, 173 and 189.

3. The Law of Consumer Credit and Hire (Stephen Neville, Fred Philpott, William Hibbert, Julia Smith, Peter Sayer, Bradley Say, and Simon Popplewell), pages 378-379

[Michellec80]

Re: Voluntary termination of hire purchase

Hi R0b. Sorry for the delay in replying to you. Thank you for this. I'll complete it send it off today.
Thanks again for all your help.

[Michellec80]

Re: Voluntary termination of hire purchase

Hi. This is still ongoing. They've tried offering me a "deal" but I'm not happy with their offer. I have decided to not take their calls so, today they called my employer to asking for me! Can they do that?

[R0b]

Re: Voluntary termination of hire purchase

HI Michelle,

How have they managed to call your employer? Did you put any employer contact details on the agreement?

[Michellec80]

Re: Voluntary termination of hire purchase

hi R0b.
Yes I was requested to do so when filling out paperwork. They wanted proof of employment so I put down the address. It is a hospital ward so easy to get the number. I just think it is unfair of them contacting my place of work.

[R0b]

Re: Voluntary termination of hire purchase

Then you need to withdraw that consent from them to call you at work. Write or email them informing them that you are not happy at being called at your place of work. The details recorded were for proof of employment and not for use as an alternative contact. For the avoidance of doubt you withdraw any permission to be contacted by telephone and/or at your place of work effective immediately.

Should they wish to discuss matters with you then you will accept correspondence in writing at your address (put in your address for clarification). If they continue to contact you by any other means then you shall consider it as harassment and you reserve the right to commence legal proceedings without any further notice.

[Michellec80]

Re: Voluntary termination of hire purchase

I'll do that now. Thanks again R0b.

[Michellec80]

Re: Voluntary termination of hire purchase

Received a letter today. They are saying that if we do not contact them to settle the account within 7 days they MAY take it to court and request an attachment of earnings order. Advantage Finance are an awful company. I strongly advise people to avoid this company at all costs.

[R0b]

Re: Voluntary termination of hire purchase

Hi Michelle,

Are you able to post up the letter?

[kwillow]

Re: Voluntary termination of hire purchase

Hi guys,

Read most Of the posts on here. Sounds mayhem. Is it worth VT an HP agreement? I'm looking at doing this as mine is now on negative equity.