VT problems

[pt2537]

Its also potentially an unfair relationship to deny you the right to rely on statutory rights.

[Yadman]

Dear Mr
Thanks for your recent email.
Unfortunately the reasons we wont be able to process the voluntary termination is because the vehicle isn't currently
in a roadworthy condition.
Further investigation has shown that after speaking to someone at the garage which is next to the dealership we have
had confirmation that the head gasket on the car has gone due to rusty radiator. He also advised that this is to do
with no coolant or water being put into the car. With these issues not being there since point of sale and are not due
to general wear and tear then we won't be able to get this processed.
Any further questions we encourage you to speak on the phone to get this resolved

Response to my email reiterating that cars roadworthiness has no bearing on VT.

I don't actually think they are reading what they're being sent tbh.

[R0b]

Like I said above, your position hasn't changed - claim repudiatory breach or argue with them until the cows come home. There's a rough and ready example below that gives you an idea of how you might claim repudiatory breach by First Response - if you do use it, you will need to adapt it to suit your current position based on what's been said already.

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

Dear X,

It appears to me that you do not seem to be recognising the fact that I have a statutory right to terminate the agreement. I've already explained to you that section 99(1) of the Consumer Credit Act 1974 (the Act) confirms that I can terminate the agreement at any time provided I give notice in writing, which I have already done. Indeed, this is further confirmed at the beginning of the contract in the box titled "Termination: Your Rights".

Nothing within the Act says that my right to terminate the agreement is subject to the vehicle being in a reasonable condition at the time of giving notice. Nor have you provided any specific reference to the legislation that supports your position that you may reject the termination exercised under section 99(1).

I have already explained that it is my understanding that due to the vehicle's age, the damage caused was one of wear and tear and, if you are able to prove that I have not taken reasonable care of the vehicle, then I will agree to pay the difference based on the market value of the vehicle less any proceeds from the sale of it.

In my view, your rejection of termination notice pursuant to section 99(1) constitutes not only an unfair relationship contracry to section 140 of the Act, but a repudiation of the agreement. By refusing to accept the notice, First Response is depriving me of the benefit of terminating the agreement and limiting my liability to one half of the total price payable (subject to taking reasonable care of the vehicle). In law, this type of breach is sufficiently serious so as to enable me to accept the breach and terminate the agreement.

Accordingly, this email serves as notice to First Response that I am choosing to accept the breach and terminate the agreement with immediate effect. In terminating the agreement for repudiatory breach, I am released from all future obligations (including any requirement to pay any further instalments).

I trust the above clarifies my position and I expect First Response to update its records of the same as well as notifying all credit reference agencies that the agreement has now terminated. If I do not hear back by X date that this has been done, I will consider my next steps which may include taking legal action for breach of data protection, namely a failure to keep records accurate and up to date.

[Yadman]

Thanks Rob, that's much more elucidated than I could've done.
I'll adapt to suit and send tomorrow and see what kind of response I get and then update.
Cheers

[R0b]

Be aware, once you terminate via this route there is no going back.

[Yadman]

That's fine. It seems to be the best course of action in the circumstances.

[Yadman]

So now they won't 'allow' me to VT until the car is returned at my expense despite the letter I emailed to them.

[R0b]

When you say the letter you emailed is that the one claiming repudiatory breach?

Can you post their response?

[Yadman]

Haven't sent that yet.
Is asked them to clarify that I'd satisfied 50% and asked if they were refusing my right to VT.
They said they weren't refusing it but they I had to return the vehicle at my exoense though I'd had an email from them last week where they said they'd collect the vehicle.
I pointed this out and got this

It is stipulated in your signed legal agreement that the vehicle must be returned at your own expense. I can provide you with the details of where the vehicle needs to be returned to.

Once this is returned to us, the voluntary termination can be completed. The vehicle will then be assessed by the auction company and if it doesn’t achieve the CAP average than you will be liable for the shortfall. If the vehicle is not running, it would not achieve CAP average and therefore liabilities would be added on to the agreement.

If you cannot return the vehicle to ourselves, we could allow you to 4voluntary terminate the agreement without returning the vehicle however the £780 CAP average valuation of your vehicle would need to be paid in full.

[Yadman]

Deleted duplicate post

[R0b]

They can take steps to come and collect it themselves, your liability is limited anyway to 50% which doesn't include dropping it off at your own expense because that means you incur further losses. That said, since the car is not roadworthy, I don't think you can complain if they charge you for putting it on a flatbed assuming the failure to take reasonable care is proven - however, that doesn't prevent them from collecting it.

Their email is suggesting that they haven't accepted the VT notice yet they have. I think that needs to be simplied to a one-line question:

You've given notice of termination of the agreement effective X date. Can they confirm with a yes or no answer as to whether that termination notice has been accepted.

Failing to answer or avoiding the question would mean you are entitled to assume that they haven't.

Anyway, I'm going to stop replying now unless there is something more substantial - you have everything you need and you know what options you have but there's no point in me replying to every piece of ping pong correspondence because it doesn't take anything further forward.

[Yadman]

Yeah I probably shouldn't have entertained them further but I've sent the repudiation letter after theybe just asked me how I intend to pay the rest of the instalments on the agreement.
Had enough going round in circles


Thanks for all your help Rob. You're a diamond.

[R0b]

If they are still asking how you intend to pay the remainder of the instalments, that's indicative of them not accepting your termination notice. Otherwise the only focus should be on the collection of the car.

Be prepared for any backlash from them and threats of defaults etc.

[Yadman]

R0b
Response received today, 2 days since I sent repudiatory breach letter

In light of all of the information provided I would like to make you an offer.

We would be prepared to process the voluntary termination and collect the vehicle, however as the vehicle is not running we would agree to take £300 as compensation towards the liability rather than the full £780 CAP average which we would normally apply.

If you are happy to proceed with this and accept our offer, please confirm via email and we can make arrangements to take the payment

[R0b]

I don't know why they are trying to make you an offer to process the VT because they don't have a leg to stand on since you have indicated repudiatory breach on their part and, having accepted the breach and terminated the agreement, you are now discharged from all future obligations. Whether they choose to collect the car is neither here nor there because its no longer your problem.

As an aside, even though the car is in need of repair, they can't just say you are liable for the market value because you can say the car has some residual value attached to it even if it's £100.

A simple response such as the one below would suffice.

Dear X,

I would refer you to my email of [date].

In that email I explained that First Response's refusal to accept my termination notice without lawful justification in accordance with the Consumer Credit Act 1974, constituted a repudiation of the agreement, namely the refusal to process the termination unless I complied with conditions not required by Section 99(1).

In the same email, I communicated to you that I was accepting the breach and terminating the agreement with immediate effect. The consequences of accepting the repudiation are that I am entitled to seek compensatory damages from First Response, which I should make clear that I am reserving that right.

Therefore, you are in no position to make any offers to process the voluntary termination. I had given you every opportunity to accept my termination notice but you insisted on subjecting me to certain conditions not required by the CCA. Accordingly, I was entitled to terminate the agreement for repudiatory breach.

I do not feel the need to explain myself any further and would suggest you consult your legal department as to your conduct in this matter. In the event that I intend to make a claim against First Response, which I am considering, I will be in touch.