VT - paying final finance payment

[dbryant85]

Hi everyone.

I wrote to my finance company on the 28th June advising them that I wanted to VT my car finance agreement. They have agreed to and I had to contact a company they appointed to arrange inspection and collection which is taking place next Wednesday.
The car finance payment was due today however I cancelled the DD because I didn't want to pay when they are taking the car back on the 6th. They are now saying that as the invoice for the DD was raised on the 25th and I didn't terminate my contract until the 28th I will be liable for the payment and it will be reflected in the final invoice.

Is this correct and will they invoice me for the full monthly payment or just until the day they collect it?

Regards

Debbie

[R0b]

Re: VT - paying final finance payment

That's correct, as it was invoiced prior to your notice to terminate it has been accrued and they are entitled to payment this is providing you receive invoices each month. If you do not and your payment is setup to go out on 1st of each month with no invoice then you could argue that as payment was not due and an invoice was not raised prior to it then you are not liable. A more uncertain argument would be to say that the payment was due on 1st and you terminated on 28th prior to the payment and so the agreement terminates immediately.

[dbryant85]

Re: VT - paying final finance payment

Thanks Rob. I have never had an invoice from them in the 15 months I have had the car. I assume they mean the 25th was when they request the payment from the bank. I don't know as I'm not entirely sure how direct debits work other than they are set up and payment comes out my account.

This is what they have wrote to me in an email

Dear Mrs Bryant,

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Your account was Terminated on 29/06 and as such we would not look to take any further payments that were not invoiced. I can see that your direct debit was cancelled on 01/07 however due to the Monthly instalment being invoiced on 25/06/16 and the termination letter not being received until 28/06/16 you would still be liable for the payment and this would be reflected in the final invoice.

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Kind Regards

[R0b]

Re: VT - paying final finance payment

Well you have two options, pay up or argue that you shouldn't be obliged to make payment.

If the latter, then you simply need to re-iterate that you received no invoice for this payment, nor have you received any invoice since entering the agreement. Your payment date is 1 of each month and as you have acknowledged that termination took effect as of 29 June, the payment for the 1 July could not have accrued any sooner.

But you are probably right about the request, usually they will request it a few days in advance like a reserve, I believe is 3 days so they probably requested it on Friday to be transferred on the Monday - whether the DD cycle can be construed as being accrued/owed is an arguable point, but in your defence, you are entitled to cancel any time before the 1 July.