Voluntary Termination - Query around timescales

[R0b]

Well the DVLA are certainly doing the rounds in the West Midlands so if they find a car on a public road that is untaxed or uninsured, then they will swipe it and yes the debtor will be responsible because they have a duty to take reasonable care and I think that would fall under it.

Unless you disclaimed liability and said to the creditor that if the car isn't going to be collected by a certain date, you will consider the car to have been abandoned and you will take steps to sell it yourself. Or you could instead say that you will leave it on a public road as it is no longer your responsibility and liability rests with them. That's assuming you've transferred the registered keeper into the creditor's name, which you can do online.

[jackmarak]

Thank you R0b , I think you answered my second question there.
You would only leave it on the public road untaxed and uninsured AFTER they have refused to pick it up for an unreasonable length of time AND the V5 book has transferred ownership back to the Finance Co.

Is that correct?

[jackmarak]

Hi R0b

Say it's been a month and the vehicle has not been collected.
The intention to sell notice is served.

Can the car be sold to a local dealer?

Say the car sells for £15, the remaining balance was only £10.

Does the whole £15 go to finance co or only what is owed?

Kind regards.

[R0b]

All proceeds belong to the finance co. less reasonable costs and expenses incurred.

[jackmarak]

Hi R0b

Barclays Partner Finance is a trading style of Clydesdale Financial Services Limited. A wholly-owned subsidiary of Barclays Bank PLC. Registered in England. Registered No: 2901725. Registered Office: 1 Churchill Place, London E14 5HP

Trading Address: Barclays Partner Finance, PO Box 2501, Cardiff CF23 0FP.

From the above addresses, would you serve a VT notice to the Trading address?

Kind regards.

[R0b]

I would send it to the address as shown on your contract.

If in doubt, send it by email and post to those two addresses to cover your own back. It might cost a little more to do it this way but better than getting it wrong which could end up being costly to you.

[jackmarak]

Thanks for the reply.

They're both on the contract, I'll ring up and ask them where I should send any letters.
If I don't get a straight answer, sending to both addresses will be the best idea.

When does the transference of V5 occur? When the inspector comes to collect the vehicle?

[R0b]

If both addresses are shown on the contract and there's no notice clause that states the address which notices should be sent, then I think it's reasonable to send the notice to one or the other since they are both included.

I would have probably sent it to the Clydesdale address rather than the PO Box but best to clarify.

V5C can happen on a paper basis when the agent comes to collect, or you can go online to https://www.gov.uk/sold-bought-vehicle and update the information once notice has been given.

[jackmarak]

Thank you for the reply R0b


To be included in the letter:

14 days (from date of letter) given to arrange pick up of vehicle (with contact number).

Advised the insurance and tax will expire 21 days after the date of letter.

Would you agree the above is reasonable?



If the V5 is transferred online, the day the car is VT'd (date of letter). Is the debtor legally allowed to carry on paying tax and insurance as advised in letter for those 21 days?

Or would the debtor have to wait until the tax and insurance expires before transference of V5?

Kind regards.

[jackmarak]

Hi R0b

Turns out if you transfer V5C, tax is no longer transferred to the new owner.

No tax = No insurance.

So If you were to transfer the V5C the day you gave your VT notice, you'd have to SORN the vehicle the same day.

This means leaving the insurance and tax running for 3 weeks as courtesy, would not be possible if you wanted to transfer V5C before that time is up.


Is it reasonable to add to the letter that after the 3 weeks of insurance and tax is up, the debtor will be transferring the V5C to the Finance Company?
After the 3 weeks, would the debtor declare the car SORN AND THEN transfer it over to the finance company?

[jackmarak]

Hi R0b I've got a conundrum you may be able to help me with here...

Finance Co are sending someone to pick vehicle up on the 19th.
Car insurance runs from the 18th to 18th each month and payment comes out on the 18th.

I'd be paying a full months insurance the day the car gets taken away, it costs £35 to cancel. So I'd get a tenner back.

Could I ask for the insurance to be cancelled for the 18th to avoid paying?
Would the car not technically be insured on the 19th by the collector anyway?

Kind regards.

[R0b]

Well typically the agents who collect the vehicle e.g. the likes of Manheim and British Car Actuion are already insured by their policies when driving the car. I can only imagine maintaining the insurance is for your benefit because those agents aren't insured on your policy to drive the car anyway so if something went wrong, you couldn't claim against it.

That said, you still need to ensure it is insured whilst the V5C is in your name unless . Might be sensible to cover your back and write to the finance company and say that the insurance will be cancelled on 18 July so their agents will need to ensure they have adequate insurance coverage to drive the car away.

You could alternatively pay for one day's worth of insurance but that tends to cost at least £20+ so might not be worth it.

Could get away with it if your car is on private driveway hidden away or in a garage out of sight from the police who might seize the car for no insurance.

[jackmarak]

The dates were hypothetical and a letter probably wouldn't get there in time now.
I may just have to bite the bullet with this one.

However I do have the number for the person who is collecting the car, I could ask if they are insured on the vehicle from midnight onwards.
The car would then remain insured throughout.