Voluntary Termination

[Garyhovis]

Hi,i have informed my finance company that i wish to voluntary terminate,do i still need to make payments until they sort it out.

[Matts89]

I'm on the same boat, I passed the 50% on the repayments and formally requested the VT via email which was confirmed as received by an operater when I phoned shortly after.

But when I asked when can I cancel the direct debit, they said they "recommend the payments are met until the process is complete". I asked when this would be and he said "your request is in a queue and will be dealt with shortly" also that "someone would be in contact to send out a termination pack"

From reading on here and the CCA it has been made explicitly clear I don't need to sign anything so I told him that and he didn't argue. Anyway I digress.


From reading the CCA 1974 section 99 and section 100 there doesn't seem to be anything about a legal obligation to carry on payments once the process is started, in fact it says more or less the opposite, that the agreement is ended once the 50% is paid and the request is made in writing. Also that the debtor no longer has legal right to posses the car and its should be returned to the creditor.

So once you request the VT and pay the 50% it seems as though your hands are washed and you're good to go as long as there is no excessive damage or excessive unmaintained wear and tear. Although the finance companies seem to try and pull the wool over peoples eyes, draw the process out, scaremongering them into paying more installments and silly damages and milage charges.

I would advise to do what I'm going to do tomorrow, phone the creditor up and ask them what legal obligation you have to keep up payments given that you have met the criteria of a VT and legally the agreement has ended.

I would also ask for a date the car will be collected as it is no longer your responsibility given the agreement has ended. You are liable for any damage caused to the car during the agreement but not for damages caused after the agreement so make sure you take traceable pictures on a phone or digital camera to prove the condition of the car after you formally requested the VT.

Again DO NOT sign anything. Not even a collection lorry recipt...you don't own the car so have no legal reason to sign anything over or what ever paper work they flash in your face.

I've harped on long enough, good luck and keep us posted.

[TINY TOTS]

i have just been through the process. the day i got proof that they had recieved my letter i cancelled the direct debit. you have paid your 50% so dont give them any more payments