VT

[Grimexpert85]

Voluntary Termination of a PCP
Hi all,

I currently have a PCP agreement with Mobilize that I have just started the process of VT. I meet all the criteria so no issues there. First off, I have read online (legal beagles and one other website) that I should NOT sign any paperwork as this can strip me of rights etc. Is this correct? Secondly, my monthly payment is due to be taken early next week but the person I spoke to said I can cancel the DD (it will be refunded if not) but again is this correct? I'd rather not end up with a missed payment on my credit.

Any advice on this or on the whole process would be much appreciated.

[HariSeldon]

I should NOT sign any paperwork as this can strip me of rights etc. Is this correct? Secondly, my monthly payment is due to be taken early next week but the person I spoke to said I can cancel the DD (it will be refunded if not) but again is this correct?

Yes, absolutely correct, do not sign any paperwork (or digital tablet etc. when they collect the car). VT is a statutory right and so your only obligations are to 1) give them notice of termination, 2) pay at least 50% of the total payable and 3) to have taken reasonable care of the vehicle. By signing anything you may be inadvertently agreeing to pay for minor scuffs and marks and/or mileage and/or collection costs and who knows what else.

If Mobilize kick up a fuss simply remind them politely that you have invoked your statutory right to terminate the agreement and that on such and such a day you will be cancelling the insurance on the vehicle and informing DVLA that you are no longer the registered keeper.

Assuming the next payment is due after the termination date you specified in your termination notice I would cancel the DD as you may have a fight on your hands for a refund unless you have it in writing that a refund will be given. I would write to them confirming the DD has been cancelled due to the agreement being terminated on such and such date as that will give you a paper trail.

[Grimexpert85]

Thank you for your response. I don't want to sound dense but does that include not signing the return slip they have sent me as part of the VT? Also, by not signing paperwork when it gets collected, does that give me more wiggle room to contest any charges outside of wear and tear that they may try to apply?

[HariSeldon]

Thank you for your response. I don't want to sound dense but does that include not signing the return slip they have sent me as part of the VT? Also, by not signing paperwork when it gets collected, does that give me more wiggle room to contest any charges outside of wear and tear that they may try to apply?

Yes and yes. Your only obligations are as already stated so personally I would not sign anything that could potentially add additional onerous obligations.

Of course if you are 100% certain that the "return slip" simply confirms you have returned the car and nothing else then you may wish to sign rather than cause awkwardness on the day.

Regarding wear and tear, the bottom line is that the law only says you have to have taken "reasonable care" so depending on the age of the car even scuffs, scratches and small dents may be challengeable if they try to charge you. This is why you shouldn't sign anything; if you sign a piece of paper saying, for example, you will return the vehicle in "good condition" then you've gone and shot yourself in the foot as scratches and small dents may well then be legitimately chargeable.

[Grimexpert85]

I've attached what appears to be the most relevant so it would seem that by signing it I am potentially asking for trouble.

[HariSeldon]

I've attached what appears to be the most relevant so it would seem that by signing it I am potentially asking for trouble.

Most definitely yes. Anyone signing that is agreeing to pay for any "damage" they invoice you for and is essentially signing away their statutory rights.

In any further correspondence just keep politely repeating that "you have invoked your statutory right to terminate the agreement and that on such and such a date you will be cancelling the insurance on the vehicle and informing DVLA that you are no longer the registered keeper."

[Grimexpert85]

Thank you. Much appreciated!

[Grimexpert85]

hariseldon I hope you see this. They are claiming a letter with signature will suffice. Will it be ok if I write a letter along the lines of "I am VTing, kept the car in good condition and remained under the milage etc" or stick firm with i don't need to sign anything?

[HariSeldon]

Have you already actually "given notice" (verbally or in writing) that you wish to VT the PCP contract and if so did you state how much notice you were giving (e.g. one week or whatever) or did you just ask them what you needed to do to VT?

It sounds like they've already sent you their Voluntary Termination Pack so it's important to understand what you did or said to cause them to send that out. It doesn't change your legal rights but it does affect how you respond to their message.

[Grimexpert85]

I have given notice via email with a date of Nov 14th.

Yes, received their own VT pack. I informed them that I will not sign anything that may affect my rights. They came back with a similar response to what I have posted. I, again, said I would not sign anything and stated that I would be cancelling DD, insurance etc on Nov 14th (for a second time). They responded with the attached.

[HariSeldon]

I'd reply something along the lines of

Dear Sir or Madam,

On *date* I gave notice that I would be terminating PCP contract *reference number* on 14th November 2025. To satisfy your internal requirements this letter confirms my signature as requested.

I do not agree to any additional terms you may wish to impose in your Voluntary Termination Pack but am aware that I am bound by Section 100 of the Consumer Credit Act 1974.

As previously advised, on or after 14th November I will be advising DVLA that I am no longer the registered keeper and will be cancelling the insurance on the vehicle.

Regards,

This shows you being polite and reasonable and re-iterates the important points.

I'd be wary of mentioning "car in good condition", the law simply says you have to take "reasonable care of the goods" so in my view there's no reason to up the ante and give them anything to argue if they have a different view on what is "good" condition. Make sure to take loads of photos (ideally with that day's newspaper in some of the shots) on collection day just in case they decide to play silly buggers.

[Grimexpert85]

Thank you very much!