Voluntary Termination - Mobilize Financial Services

[Polar]

Hi all,

I have paid more than 50% of the total amount due under the PCP so understand I can terminate the agreement without paying any extra fees. I have written to Mobilize using the template from the guide asking to terminate the agreement from 30/11 (date chosen because it's a couple of days before the monthly payment is due so it won't need to be paid).

Mobilize have told me that I can't choose a date to terminate the agreement and they will terminate it once I have returned the paperwork they have sent and the vehicle is collected by them. Until that point I am liable for the monthly finance payment.

Are they correct?

[R0b]

What Mobilize is telling you is a false misrepresentation of the law.

The Consumer Credit Act 1974 which the agreement is regulated by, does not state that termination of the agreement is subject to certain conditions or that you the agreement will only terminate once you have signed their paperwork and the vehicle has been collected. Section 99(1) actually says:

At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement.

As per my highlights above, you can terminate at any time as long as you have given written notice to Mobilize. The date of termination can be immediate or it can be some future date as long as it is before the final payment becomes due.

Sounds like they are playing hard ball so rather than play ping pong correspondence, I would suggest you initiate the formal complaints procedure with Mobilize so that you can refer this to the Financial Ombudsman within the next 8 weeks. If you are confident you have met the VT requirements, you do not need to pay them a further penny in as far as the monthly instalments. You should include a request for them to explain, by way of reference to legislation where it says that termination of the agreement only occurs when they have collected the vehicle and signed their paperwork - do be careful about signing anything as it is common ground the paperwork will try to waive your rights by saying you agree to pay for any damage recorded when it comes to inspection. I would always recommend not to sign paperwork but you do so at your own risk and I have little sympathy for those who do sign and then it doesn't turn out well for them when further demands are being made for additional costs.

So you could cancel your direct debit if you haven't done so already but be aware that they might threaten to place adverse entries on your credit file and if they do, the only real way of resolving that would be to start legal proceedings for breach of data protection laws by failing to ensure the data reported to credit agencies are accurate and up to date.

Alternatively, you could continue to pay them the monthly instalments but you should make it clear in written correspondence that you do not agree that you have to continue paying them, and are doing so under duress and for fear that they may tarnish your credit file with adverse entries. Therefore, following collection of the vehicle, it is your intention to start legal proceedings to recover the overpaid sums after the date of termination you had given them.

[Polar]

Thank you. They have sent me a statement which shows that I have met all the requirements to VT the agreement. I have now replied reiterating that I am continuing to decline to sign their return slip as there is no legal basis for them to require me to and that I wish to end the agreement under Section 99(1) as of the date I gave. If they are unable to process my request I have asked for it to be raised as a formal complaint.

So we will see what they reply with I guess.

[Polar]

They have simply replied stating that as the form isn't signed they can't proceed. I have raised a formal complaint.

[Polar]

Haven't heard anything further from RCI but Mannheim have contacted me this morning to arrange collection of the vehicle, so I'm assuming they have decided they're willing to proceed without their signed slip after all...

[R0b]

If I were you, I wouldn't be handing the car over to Mannheim until you have written confirmation from RCI that they will make arrangements for the collection of the car. You want to be dotting the i's and crossing the t's on this one and not give RCI any room to say you were not authorised to hand the car over without their permission.

Entirely up to you if you want to hand it over but only yourself to blame if something goes pear shaped as you will only have yourself to blame.