Finance coming saying I cant VT

[Josheyg24]

Hi people,

I am just wondering if anyone can advise me I sent a VT to my finance company on 29th August 2019 as I have payed over 50% and met all the requirements bla bla bla and they sent me a letter back stating the I wasnt able to VT as they allegedly already terminated my agreement when I defaulted back in March 2018.

What makes this worse is that surely if they terminated my agreement back last year then why have they allowed me to pay my standard monthly payments plus arrears payments on top since last march and continued to allow me to keep the car and rang me every 3 months to check on my financial situation and sent me regular statements of what has been paid ect.

Is this them just trying to get out of the VT or are they right.

Any help will be gratefully serious answers only please please note they said that I can surrender the car and sell at auction.

Regards and many thanks

[R0b]

Once the agreement has been terminated by the creditor, your right to VT is lost.

You appear to have omitted some information because you say that you paid arrears on top of your monthly instalments and that suggests to me that you knew something was going on back in or around March 2018 so you must have known if they terminated or not.

I'm afraid if you only give half the story, you will get half an answer but either way, if they did indeed terminate the agreement in March 2018, you can't VT.

[Josheyg24]

I was never notified that my agreement was terminated back last year I have been in constant communication paying of £900 worth of arrears, but surely if they terminated my agreement I would of had the car taken by now and had letter from court or some sort of repossession but yet they set up a payment plan to clear my arrears and get back on track with them

Tha is

[Josheyg24]

And may I add my credit file account for my finance isn't in default only late payment so this makes me think there trying there luck with there response letter

[R0b]

It's very possible they could but before you walk down this path you need to be certain because if you get it wrong, it could all go tumbling down. If it's the same company I think it is, there are other stories of them suggesting they've terminated in earlier months but continued to let the debtor use the car and pay the instalments.

If they only sent you a default notice and you immediately set up a payment plan within the time required to pay the arrears, and you have some kind of evidence to prove it, that would suggest to me that they haven't actually terminated the agreement due to non-payment, they have simply agreed with you an arrangement to re-pay and the contract continues.

Sounds like you probably need to gather your evidence before deciding matters. I would suggest making a subject access request for all of the data they hold about you including any account notes or history, letters or other correspondence sent to you in relation to the finance agreement.

Once you've got that information, you can decide your next steps. Unfortunately, that might mean you having to pay another instalment before setting out your next steps. If it turns out that you could VT your agreement, then you could argue that any instalments paid past the point of giving notice, should be returned.

[Josheyg24]

Pcf That is correct they sent a default notice and I set up payment plan instantly and have been paying it since and they have mentioned on phone to keep paying until arrears are clear so that there wont be any need for further action

Regards

[Josheyg24]

R0b is this correct - Voluntary termination is a legal right to end a hire-purchase agreement early, subject to certain conditions. This right is set out in Section 99 of the Consumer Credit Act 1974 and it is a statutory right which cannot by excluded or restricted by any terms or conditions set out in the hire-purchase agreement

Is this saying that regardless if there was a default ect I still have a right.

As the finace company are saying I lost my right but if I sign this form I can voluntary surrender.

Thanks

[R0b]

You lose your right if the agreement has been terminated. If a default notice has been sent to you and are still within the period of compliance e.g. 14 days to pay the arrears, then you could still VT at that point. It's only when the agreement has been actually terminated does the right become lost (or when the final payment falls due although when the creditor terminates the agreement due to a default payment the outstanding balance then becomes the final payment)

[Josheyg24]

R0b default notice was sent back last year in march, set up a payment plan but they are trying to get me to VS but they say I still have a agreement with them I just lost my right to surrender?? I dont understand

[Josheyg24]

Also to add if there saying I can VS then clearly I still am in agreement and still have a right to VT

[R0b]

If a default notice was issued for the arrears and then you came to an arrangement, the agreement is therefore still alive and hasn't been terminated. Nothing in the CCA I can find suggests you lose the right if a default notice is issued because the arrears are not the final payment, they are just arrears.

It's a matter of interpretation but my view is that "final payment falls due" means either the final payment at the end of the contractual term or, where the creditor has in fact terminated the agreement and has demanded the remaining balance be paid.

There is some authoritative text on this point, Goode on Consumer Credit Law and Practice - see below, particularly the last few lines.

[Josheyg24]

R0b thanks , it's kind of helped more. they have confirmed I'm still in a agreement and that because the default notice was issues and I never paid anything other than set up payment plan I lost the right to VT when the default notice deadline hit

[R0b]

I would disgaree - the information above makes that clear so I think they are trying to wing it.

Ask them to point you to the specific provision that says your right is lost when a default notice is issued, because it doesn't. You entered into a payment plan and so that payment plan supersedes the default notice, agreement continues (as they have confirmed) but that also leaves in tact your right to VT since the final payment was never due.

They never invoked an accelerated payment, jsut arrears.

[Josheyg24]

Many thanks R0b

[Josheyg24]

R0b just spoke to them they have confirmed her agreement is still live and that they are correct and if she thinks they are wrong then she needs to get legal team to contact them