Black Horse VT Issues - Not accepting VT

[Greenman2020]

Hi all,

Firstly, just want to say thank you to everyone on this forum. It had helped me in the passed so just wanted to add that!

So, around 3 and a half years ago, I taken out a car which was financed by Black Horse. With Covid etc, there is very little need for me to have one so makes sense to VT it.

I have called them today and they have said that due to an insurance which was added on, they're unable to VT the car until the remaining £500 is paid (if paid monthly, this will take me to the end of the agreement.)

In terms of the car, I have payed well over the 50% mark (actually around £3k over)

What i want to know is, is this correct? Can they refuse the VT until its paid? The person I spoken to said that if I did try and push it through, it would show on my credit file as well.

Any advice is much appreciated.

Cheers

[R0b]

Absolute rubbish, seems like Black Horse are up to their old tricks again. You have the right to terminate at any time, it is a unilateral right and there are no pre-conditions attached to it.

Another recent poster was in a similar position as you with regards to refusing agreement, who went to the Financial Ombudsman and found in their favour (click here for link). You could drop that person a message and ask for their reference number to use as evidence to Black Horse. The other point is that it could be seen as a repudiatory breach and you could have a right to terminate the and claim damages that way.

Having said that, your initial post does not suggest you have complied with the VT process, so I recommend you read my VT Guide below.

A Guide to Voluntary Termination - Your Rights

[Greenman2020]

Hi Rob,

Thank you for getting back to me - In terms of the VT Process, you're right. Just to explain, I thought (clearly wrong) that they would be able to help over the phone - I feel I know a bit more about the process now so will go down the letter route etc.

In terms of BH, I expected that to be the case. It just seems a pain that they try and be awkward.

The short term worry I have is, I am in the process of getting a mortgage, so the last thing I want is for them to mark my credit file and have a negative impact on this. I am sure I am over thinking it but always better to be safe than sorry

[R0b]

This is exactly why you need to document everything in writing. Do not deal with BH over the phone unless it is absolutely necessary and if it is, follow it up with a letter or email to confirm what was discussed.

Unfortunately, BH will do what BH wants to do and you won't be able to change that. Most of their systems are automated so unless there is a built in manual override or they close the account, you are likely to get some kind of negative impact.

Either you hold off until you have completed your mortgage or you take the risk and then sue them if they do something that causes you to lose that mortgage. You should receive a late payment or default notice letter and at that point you do need to make them fully aware of your mortgage application so they are notice. You are not likely to be able to claim damages if they weren't aware of something that you should or could have told them about.

Anyway, it's all speculation as you haven't even exercised your right yet.

[Greenman2020]

So, I have a small update - I have spoken to the Financial Ombudsman - So the issue seems to be, it is warranty, not insurance. How BH has added the in payments is HP + Warranty for 60 payments = XYZ. BH is saying (as I understand it) that as the warranty still has x amount of payments, that will be outstanding.

You're right though, I will be documenting everything in email (learnt the hard way last time with a parking ticket) so will be doing that this time.

Just in terms of your guide, I noticed that on page 24, the paragraph mentions about cancelling the HP but keeping any products bought at the same time - I am assuming that is a route I can go down here with the warranty payments?