VT Help

[Shaundv2]

Hi
I have car finance at the moment , I missed 2 payments and they have sent a default notice . I am £600 in arrears in total and the default notice states I can do VT but have to do it by end of the month and pay £2400 which brings me to 50% it also states if I may lose the right to VT if action is not taken before 23rd

can I request VT and then pay the £2400 on a payment plan or do I have to pay the £2400 up front ?

can they refuse the VT because they have sent the default notice or is it just worded to make me think this ?

The car is in great condition so is there any reason they could refuse the VT ?

I am in a position if they agree to the VT to pay £900 of the £2400 at the end of this month which would leave £1500 which I could do on a payment plan

Any help would be great thank you

[TINY TOTS]

hi there.. as far as im aware you can only vt if you are at or passed the 50% mark (with no monies outstanding) so in order to do it you would need to bring your account up to date. I just had to keep paying until I reached that 50%
good luck

[R0b]

hi there.. as far as im aware you can only vt if you are at or passed the 50% mark (with no monies outstanding) so in order to do it you would need to bring your account up to date. I just had to keep paying until I reached that 50%
good luck

Not true, you can terminate at any point before the final payment becomes due which will either be at the end of the contract or when the creditor has terminated the agreement. A default notice does not terminate the agreement and in fact the notice itself should say that you have a right to terminate the contract, if it doesn't the default notice would be invalid.

The lender can't refuse to let you VT and if they do that would be a fundamental breach of contract which would entitle you to terminate yourself with immediate effect. Even if you can't rely on this, you could rely on the fact you gave notice to terminate before the expiry of the notice and your VT letter of termination would be valid, though I would expect the lender to dispute this especially if they're a sub-prime lender.

As for a repayment plan, again the lender would be in breach of their regulatory obligations if they expected you to pay the £2,400 upfront because tey have to give forbearance to those who are struggling, and the fact that you have missed 2 payments would indicate that you might be struggling to make the repayments.