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Hi,
As of Monday this week I have exercised my right to voluntary terminate my finance agreement with Moneybarn. Below is what I emailed them:
Dear Sir or Madam,
I am writing to inform you that I am exercising my right to terminate the above hire-purchase agreement with immediate effect in accordance with Section 99 of the CCA 1974. You will be aware that I have to date paid 45 installments totaling £10,305.00 which exceeds more than half the total price payable under the agreement. Accordingly, I calculate that there are no further installments to be paid.
I have also inspected the vehicle and I am of the opinion that it is in a reasonable condition given its age whilst accounting for fair wear and tear. Photographic evidence has been taken in the event of any future dispute as to the state of the vehicle.
Finally, I would remind you that as a consequence of terminating the agreement under Section 99 of the CCA 1974 and having met the relevant criteria under S.100(1) of the CCA 1974, my liability is limited to one half of the total price payable. Any additional costs, expenses, compensation or otherwise relating to a breach of the agreement are irrecoverable. The vehicle is available to collect and arrangements should be made at your own cost.
The agreement was until January of next year and regular payment amount was £229. I am exercising the VT simply because I still owe £2000 on the vehicle but it is only worth half of this amount. Not to mention the cash price at the time was £4500. I have received Moneybarn's standard response and BCA are visiting me to collect/inspect the car on Monday but I have some queries on what happens next.
I think that sums it up. Just looking to see what to expect, what I might have to pay and what I can realistically fight and have a chance of winning.
As of Monday this week I have exercised my right to voluntary terminate my finance agreement with Moneybarn. Below is what I emailed them:
Dear Sir or Madam,
I am writing to inform you that I am exercising my right to terminate the above hire-purchase agreement with immediate effect in accordance with Section 99 of the CCA 1974. You will be aware that I have to date paid 45 installments totaling £10,305.00 which exceeds more than half the total price payable under the agreement. Accordingly, I calculate that there are no further installments to be paid.
I have also inspected the vehicle and I am of the opinion that it is in a reasonable condition given its age whilst accounting for fair wear and tear. Photographic evidence has been taken in the event of any future dispute as to the state of the vehicle.
Finally, I would remind you that as a consequence of terminating the agreement under Section 99 of the CCA 1974 and having met the relevant criteria under S.100(1) of the CCA 1974, my liability is limited to one half of the total price payable. Any additional costs, expenses, compensation or otherwise relating to a breach of the agreement are irrecoverable. The vehicle is available to collect and arrangements should be made at your own cost.
The agreement was until January of next year and regular payment amount was £229. I am exercising the VT simply because I still owe £2000 on the vehicle but it is only worth half of this amount. Not to mention the cash price at the time was £4500. I have received Moneybarn's standard response and BCA are visiting me to collect/inspect the car on Monday but I have some queries on what happens next.
- At the time of VT I owed £175 in arrears for a missed payment and I had a payment plan in place. Do Moneybarn have a right to recover this or does the fact I've already paid over £10k give me any backup? If I understand the CCA correctly there is no provision for any arrears.
- I never received any service history when I bought the car and admittedly through my own negligence I've never had the car serviced. As far as I am concerned I am returning the car in the state I got it as far as service history goes. Can Moneybarn recover anything here or again does the fact I've paid over £10k give me any further support? Section 100 of the CCA seems to suggest this "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 effect accordingly." I believe subsection 1 refers to one half of the total amount payable so this would have been around £6k.
- The car has a small scratch on the drivers door from where the car got keyed and I was never able to fully buff it out. Can they recover anything here or does reasonable wear and tear cover me? Again I've paid £4k more past the half way point.
- I have taking out a new agreement for a new car with a much better interest rate. Naturally Moneybarn will see this on my credit file if they were to check. Can they use this against me? And yes I've learned my lesson re the lack of service and will ensure this is done moving forward.
I think that sums it up. Just looking to see what to expect, what I might have to pay and what I can realistically fight and have a chance of winning.
