Payments after voluntary termination

[mac385]

Hi all
I need a little help with a payment issue. I did a VT on the 14th March but payment for the car was taken on the 19th March. Should i still have had that payment taken out of my account or should they have stopped taking money from me due to the VT. The company Marsh finance are saying because i am still in possession of the car i am still liable for the payment, which i think is ridiculous. So if they decide to collect the vehicle in 6 months will i still have to pay them for the next 6 months? Any help will be appreciated. Thanks in advance

[Kati]

Personally I'd be cancelling the direct debit

tagging R0b xx

[mac385]

Hi Kati
Thanks for getting back. I am going to request the payment back from the bank through a direct debit indemnity. I have cancelled any further direct debits though. Was a bit naive thinking they would stop the payment once i did the VT.

[R0b]

Hello

How did you communicate your notice to VT? If you gave notice by telephone then that would not be correct notice of termination and strictly speaking the agreement continues until you provide them with valid notice. In this scenario, they would be entitled to retain the payment.

If you gave notice by post, assuming it was first class (and you obtained proof of postage) then they should have received the letter in accordance with the usual Royal Mail postal times. If it was by email, then notice would have probably been effected on the same day (if before 4pm) or the next working day if after that.

[mac385]

Hi Rob
I gave them the VT by email on the 14th March and they confirmed that they received it on the15th March. Don't understand why they are refusing to reimburse me the funds. My fault for not cancelling earlier. It looks like they are sticking to their guns about me having to pay them but will be chatting with my bank to get direct debit reversed. Just wanted to check that i am right in getting DD reversed.
Thanks again

[R0b]

If they confirmed receipt on 15 March and providing you have already paid at least 50% of the total amount payable, then I would be confident in saying that you don't owe them any further money. Just make sure the bank does reimburse you as they will sometimes try to fob you off and suggest they can't do it or you should speak to the finance company in the first instance which as you have said, you have a direct debit indemnity guarantee for unauthorised payments.

Just be aware that there may be a risk that the finance company might pursue you for that reversal either by marking your credit file or by using debt collectors or commencing legal proceedings.

There is of course nothing within the CCA that says you must continue paying them until the car is collected (I doubt there is anything in the agreement to that effect either) and I would like to see them point to the relevant provision that says that. In fact, as is widely discussed on this forum n a regular basis, your liability is limited to 50% of the total amount payable - anything they try to impose on you financially (other than compensation for failing to take reasonable care) is void and unenforceable.

[mac385]

Thanks Rob, thats what i thought. I am willing to go all the way if they start sending debt collectors or go the legal route. I don't want to just let them fob me off. I sent them an email notifying them that i had asked the bank to reverse the payment and also that i am seeking advise on the issue and they have just gone cold.
Thanks again