VT help needed advantage finance

[Sl234]

Hi
so I recently sent a notice of voluntary termination with immediate effect to advantage finance on 04/2/22. We had a payment holiday during coronavirus this was agreed but never missed a payment. I worked out i had paid over half of the agreement despite the holiday. Advantage replied to my letter and i delivered the car. Today I had a phone call saying that I hadn't paid my instalment on the 07/02/22 i cancelled the direct debit as I had paid more than half. Am I liable for this payment? I don't feel like this is fair to pursue me for arrears due after i had already told them i was terminating the agreement? Any advice?

[echat11]

Hi SL

Here's an excellent guide by ROB,

https://legalbeagles.info/forums/for...on-your-rights

[Sl234]

Thanks I have read the document but it is not clear on when the voluntary termination comes into effect. Is it from when I send notice? When the car is collected?
My issue with advantage is as follows
1) they are saying I am liable for a £330 instalment payment due on the 07/02/22 when I notified them on the 04/2/22 that I was terminating
2) They said on there vt response that I needed to pay a card payment for £73 which I did their reason was that I hadn't paid 50%. upon viewing my statement after making the payment I had paid more than 50%
I have received a response from them informing me that the VT is not finalised until they have received the car and inspected it. Is this factual I have trawled through posts forums etc... and still can't find the answer I have contacted citizens advice and they dont know either.
they have offered to reduce the liability payment from 330 to 150 and have said if I pay this they will close the account. So am i liable to pay it or should I take it to the financial ombudsman?

[R0b]

You need to make a formal complaint to Advantage first and wait at least 8 weeks or their final response whichever is sooner before you can go to the FOS.

Termination of the agreement takes effect when you say so in your VT letter because you have a right to terminate at any time. So depending on what termination date you gave in your notice depends on whether you are liable for the payment.

[Sl234]

Hi rob
I said in the email I sent with immediate effect and the date was 04/02/22. I have made a formal complaint this is there response....
Good Afternoon Sarah,

Your email has been escalated to myself in the hope the we can come to a resolution with the points that you have raised.

I have taken into account the points which you have made and will instantly elude to the part which gives a balance outstanding – you have copied this section in your email too.

"You have a right to end this agreement. To do so you should write to the person you make payments to. They will then be entitled to the return of the goods and half the total amount payable under this agreement that is, £7727.76. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay anymore."

Please take careful note of the small section I have underlined and put in bold above.

The Voluntary Termination is not finalised until the vehicle has been returned to Advantage Finance and has undergone it’s independent inspection to confirm whether or not any repairs will be added to your Voluntary Termination balance. Confirmation the Voluntary Termination is finalised is sent to you in the post shortly after the above inspection.

As you had a Direct Debit of £330.00 return before the vehicle was returned, this then became an ‘overdue instalment’ in line with the specific T&C you listed above, meaning the balance is owed. Should this Direct Debit have gone through, then there would have been no overdue payments, meaning the outstanding balance under Voluntary Termination would have stayed at £0.00.

I would like to get this resolved however to close your account in full. I am happy today to offer over a 50% reduction this amount, and would be prepared to accept a payment of £150.00 to short settle the above outstanding balance, and close your account with Advantage Finance in full.

If you wish to close the account by paying the above sum, please do not hesitate to call me direct on 01472 503183. I will allow this offer to stand for 28 days.

[R0b]

Typical rubbish spouted by finance companies who don't have a legal understanding of the voluntary termination process and make it up as they go along. You could respond using something along the lines of below as an example but feel free to modify as you wish.

Dear XXXX,

I am writing in response to your email of XX XX 2022.

In the email you claim that there is an overdue instalment of £330.00 because my right to exercise a voluntary termination is conditional upon the vehicle being returned to Advantage Finance and it has undergone an independent inspection to allow for you to issue an invoice for any damage to the vehicle that supposedly occurred whilst in my possession.

Please can you direct me to the relevant section in the hire purchase agreement or anywhere in the Consumer Credit Act 1974 that says termination of the agreement does not take effect until these conditions have been met and that I must continue to pay the instalments. I am confident there is nothing to support what you have said but since you have made this statement, I would like you to provide me with some evidence to back this up.

I also find it curious that despite you insisting that there is an overdue instalment of £330.00 that remains outstanding, you are immediately prepared to wipe out half of that amount if I agree to pay the other half. If you are so adamant that the instalment is overdue then I wouldn't see why you are willing to accept anything other than the full amount.

Finally, if your position does not change, please confirm that it is the final position of Advantage so that I am able to take the matter up with the Financial Ombudsman. In the meantime, I wish to make clear that the alleged overdue instalment is disputed and I would ask that you refrain from taking any steps that may impact on my financial standing until the complaints process has been exhausted. Should I become aware that my financial standing has been affected as a result of Advantage's actions, then I reserve the right to commence legal proceedings and seek compensation for breach of the Data Protection Act 2018 and/or the UK GDPR for failing to ensure that the data recorded by Advantage is accurate, up to date and not misleading.

[Sl234]

Thanks rob ill send that over and see what they say

[Sl234]

Hi rob
they are still saying the same unfortunately do you have any references or case law i could refer to for my own peace of mind that I am right in what I am fighting for i can't find anything on line or in the act that specifically states when the vt comes into effect

[R0b]

Section 99(1) of the CCA is as clear as day - you can terminate at any time. Just follow the complaints process to the FOS, the onus is on them to prove that VT is subject to the car being returned and payment out any outstanding balance.

Consumer Credit Act 1974 (legislation.gov.uk)

[Sl234]

What about this section of the CCA? Does this not apply?

If the agreement provides for the making of payments by the hirer to the owner at equal intervals, the minimum period of notice is the length of one interval or three months, whichever is less.

[R0b]

No, that applies to hire agreements only not hire purchase. The two are not the same.

[Sl234]

Hi
just wanted to update you on my case. I submitted a complaint to the ombudsman service and advantage have since made an offer to write off the final payment and close the account. This is such a relief for me and thanks so much for your support and advice it's been incredibly helpful
many thanks

[R0b]

Well done, just make sure that write off includes removal of any adverse entries on your credit files before you accept the offer. I'd be inclined to ask for a cheeky compensation sum for them refusing to do anything and then all of a sudden as soon as you make a complaint to the Ombudsman they now feel like they can write the amount off and close the account, putting you through unnecessary stress and inconvenience, but that's up to you.