Voluntary Termination

[watherton]

Re: Voluntary Termination

labman,

was there a specific reason, info you wanted to share regarding the fee?

[labman]

Re: Voluntary Termination

Yes. I didn't post it immediately as I wanted a bit of time to think. I'd be very grateful for other peoples' thoughts on this, but if the £2658 was to take the figure up to the magic 50% so you could do a VT, have you actually reached that figure yet?

The way I read Sections 99 and 100 is that the termination cannot take place until the 50% figure has been paid. This makes me very suspicious now of what Audi are playing at. At present they have a vehicle returned to them, you've informed them you want to VT, but you have not paid the 50% required to do so. If my assumptions are correct and this is the case (I hope I'm wrong - I was initially reading it as though you had already paid the 50%), I wonder how long Audi will let this go before trying to reclaim the entire outstanding balance as a debt.

That is my worry, and I hope I'm way off the mark. All views very welcome, or just tell me you've paid the 50% and I've got it wrong. That would be good! :beagle:

[Guest]

Re: Voluntary Termination

The way it works is that in order to terminate(and have nothing to pay) you have had to have accrued one half of the totall repayment price.
This can include anything paid on the contract and any arrears up to the date of termination as long as no default as been issued.


This is why it is possible to VT when you have arrears on your account.

It is difficult to understand i know but the act doesnt say you have to pay half the total due under the contract, it says you have to pay the differnce between half the total due under the contract and the agregate on the sums paid and the sums due if any.

Peter

[labman]

Re: Voluntary Termination

I understand that Peter (I think! lol)

What concerns me here is that they have not yet paid that 50% sum. I know they don't have to have paid it yet in order to VT, but they do have to pay it, "on termination." It stands to reason that termination takes place when the 50% figure is paid as it cannot do otherwise.

If, as I think may be the case here, they are £2658 short of the 50% figure, even after payments made, deposit etc... are taken into account, those monies remain owing before termination can take place.

How long will Audi leave things in this situation before they say, "We told you what you needed to pay to terminate, but you haven't paid it. Therefore we're going to demand the remaining amount from you."

My understanding is, if the figure is short of the 50%, they are then entitled to pursue the full outstanding balance. It might therefore be in the OP's interest to pay the £2658 to ensure the account is indeed terminated, rather than risk Audi pursuing them for the entire remainder owing under the agreement.

I don't know how long things can be left 'in limbo' where the OP has initiated, but not completed, the VT process.

[watherton]

Re: Voluntary Termination

That's exactly what i'm trying to get to the bottom of for my friend.

She phoned Audi, and told them that she'd like to organise the VT, they then sent her a letter with the the figure 2658, which would be the outstanding balance to take her to the magical 50%.

Audi, informed her that the collection company would be in contact to pick the car up, and that all payments must be made prior to the car being taken away.

However, the car has been taken away, and nothing from Audi, no telephone, no letter.

[labman]

Re: Voluntary Termination

Does your friend have, or can they get hold of, the £2658?

My view of this, though it will be interesting to see Peter's take, is that as there is a shortfall, the account is not yet terminated - it can't be as you have not paid 50%.

If you don't pay the 50%, there must come a point when Audi try to pursue for the total remaining balance.

How long was the gap between the letter and the collection of the vehicle roughly, was it a matter of a few days or a couple of weeks or more? What I'm trying to ascertain is did they leave a reasonable length of time for your friend to make the payment requested.

[Guest]

Re: Voluntary Termination

Hi

Yes trhey will certainly pursue the sums due under the terminated agreement, but they will only be able to pursue the sum that takes the total paid up to the 50% value and not the full agreement amount.

Peter

[labman]

Re: Voluntary Termination

Yes - agree there Peter, they are likely at some stage to pursue for the £2658 in order to terminate the agreement. Section 100 clearly states that they only pursue the amount up to termination (-ie- the 50% amount).

So, back to what we were saying earlier, it's probably best to keep quiet for the moment, unless you've actually got the money to repay the debt, and see what Audi do. They are highly unlikely to let it go on for too long, but could well farm it out to a DCA first.

The other question which needs answering now is their entitlement or otherwise to charge interest up to the point of termination, and at what rate?

Peter? Over to you!

[labman]

Re: Voluntary Termination

Another thought has just occurred to me here, which may be good news.

When the vehicle is taken back, it would then be either resold or auctioned off. Given the value of the vehicle, even at an auction I suspect it would have raised more than £2658. Would this money not be put towards the account, thus taking it over the 50% mark, or does it not work like this?

[Guest]

Re: Voluntary Termination

Hi

The thing to remember is that there is no magic figure where the debtor can terminate. He can terminate at any time(section99).
All that section100 does is say that if he terminates (and not the creditor) the maximum he will have to pay is 50% of the totall agreement.

Unless of course the term of the agreement as gone past its halfway point then he will also owe any monthly payments due under the agreement whilst he is in posesson of the car.

Peter

[labman]

Re: Voluntary Termination

Sorry, I'm obviously not expressing myself clearly here. I understand all the above, that's not a problem.

The issue here is that the vehicle is not in the OP's possession anymore, but remains technically under an agreement as the account has not yet been terminated.

As the car has gone back to the garage, they will either sell it or auction it. Do the monies raised from the sale go to the garage, or will they go to the OP's account, thus taking it over the 50% mark and terminating the agreement?

Hope this is clearer!

[watherton]

Re: Voluntary Termination

the letter was received on the 1st March, the collection from BCA Logistics was on the 13th March.


She, has had no other communication from Audi / DVLA / BCA Logistics.
------------------------------- merged -------------------------------
forgot to mention, the outstanding balance is tucked away.

[Guest]

Re: Voluntary Termination

HI

If the car has been taken away and the OP has told them that the account is terminated, then it is terminated.

99 Right to terminate hire-purchase etc agreements
(1) 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.

All he owes now is the difference between what he has paid and fifty percent of the totall agreement price.

100 Liability of debtor on termination of hire-purchase etc agreement
(1) Where a regulated hire-purchase or regulated conditional sale agreement is terminated

under section 99

Peter

[watherton]

Re: Voluntary Termination

ok, i think we may of drifted off the subject from my original post.

My friend, totally understands that there is money owing, but was trying to find out, why or when Audi are likely to chase her for the outstanding balance?

The car has gone, the direct debit mandate cancelled, yet NOTHING from Audi. She has the money, and definitely doesn't want to call chase them, interested etc.

Have either of you ever come across this situation before?

[labman]

Re: Voluntary Termination

Right, got it - crystal clear now. Thanks for your patience! All straightforward then - £2658 is owed and will be pursued at some stage by Audi. If you have it tucked away, it's probably best to pay it and get it all sorted and out of the way.