Car Finance - Voluntary Termination (Moneyway)

[JamPickleP]

Hi Everyone.

First post so if I do anything incorrect, I apologise.

I have just tried to VT my vehicle with moneyway as I have paid over the 50% required (I used the template letter from here) but they have rejected it because I missed two payments and defaulted on my account 25 months ago.

I called them today and was advised that my agreement was cancelled back in July 2017 and had been moved to an 'Informal Payment Arrangement' something which for the past 25 months I had no idea about, I haven't been notified through any form of communication.

Whilst on the phone to the advisor he ran through the documents that they have sent to me and not once did they inform me that I was under this 'IPA' and that I had lost all contract rights. What gets me is that they never notified me about the change so I have been using the contract as a means of checking over what rights I had, etc. They have offered me the voluntary surrender option or to sell to a dealer and make up the rest required.

Is the above legal as they didn't notify me about the change, etc.? And would I have any form of legal backing if they tried to recoup the rest of the amount owed (6K) if they went through the courts, etc.

Sorry if a bit vague, I'm a bit baffled by this at the moment, as I don't know what contract/terms of agreement I have been paying towards, if they cancelled it.

Thank you in advance
James

[R0b]

Difficult to say whether what Moneyway is telling you is above board and legal. In order to terminate the agreement, they must have sent you a default notice so did you receive that at any point?

It might be worth exploring that if no communication was sent to them or agreed by you about this IPA, then a new agreement on the same terms could have been entered into by continuing to make the repayments.

I have seen on several occasions Moneyway use this argument but part of me suspects they are trying to use it as a way to prevent consumers from exercising their right that they're entitled to.

Your best best of understanding all of this is to continue making your repayments, send a subject access request for the agreement, any updated T&Cs, other correspondence, account notes and summary of account. You can then decipher whether they actually sent a default notice but of course if you remember this and did nothing, then it may be the case that you have no recours except for the point mentioned above about whether this was in fact a new credit arrangement.

[JamPickleP]

Hi Rob,

Thanks for the feedback and information. I was going through paperwork last night and they sent me a statement summary at the start of this year, with an overview of what I had paid throughout 2018. On the back of this documentation was another sheet of A4 telling me that I still had my termination rights, I'm going to raise this with them today as a complaint stating that they are trying to force me in to a VS and not VT, I am also going to contact the FOS as well.

They did send me a default notice but surely if they have sent me this documentation I am well within my right to believe a VT is still applicable for me.

Thanks again

[R0b]

You have a right to exercise VT but only in so far as the agreement remains alive, including when a default notice has been served on you - the DN normally requires finance companies to include as part of the prescribed information, your legal right to exercise the VT.

Once the agreement is terminated, that right is lost. If you received no further information, demand for the repayment of the full balance of the remaining amount or any other similar correspondence might indicate that Moneyway didn't actually terminate the agreement, although it would normally say in the DN how they intend to terminate the agreement e.g. immediately upon failure to pay the arrears.

Otherwise, the lack of correspondence may imply a new credit agreement based on the outstanding balance, in which case Moneyway would be required to supply you with fresh documentation and failure to do so means the agreement has been improperly executed.

I think to avoid complications or Moneyway trying to do anything underhand, make a subject access request and see what information they can provide, you can then formulate your complaint starting with Moneyway and moving on to the FOS. Failing that, your only other option is to try your hand in court.