Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

[lambyy]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi,

I am VTing my current agreement with Fiat. I have paid over 50% of the amount oweing and sent my letter off today. I am over my allowed mileage for the year(s) so I accept I will have to pay for this. However, I also took out SmartRepair through them (something with I will never do again - learn from your mistakes!), and they are telling me I will need to repay the outstanding amount of that which is about £180. However, nowhere does it state this in my contract. I have queried this with them and they have said they can't disagree with what I am saying about it not being stated in my contract, however I still have to pay it under the CCA. I have asked them to point out exactly which section of the CCA relates to this and they are getting a manager to ring me back tomorrow. Does anyone know if I have to pay the remaining amount back? I have no problem paying it if they can show me written proof I have too.

The SmartRepair loan is with a separate company, not FCA which is why they are saying I have to pay the remaining amount back - but my signed contract is with FCA, not FCA plus a third party company. So even though it isn't in my contract apparently I have to pay the remaining balance? If someone can clarify it would be extremely helpful.

Thank you.

[jaw1985]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

If I were you, this is how I would word it and I know you are happy with paying repair costs but you can at least try to bring the price down - amend the wording as you wish.

Dear Sir / Madam,

LETTER BEFORE ACTION: BREACH OF DATA PROTECTION UNDER A HIRE-PURCHASE ARGREEMENT NUMBER [NUMBER] (the “Agreement”)

I am writing to you in response to your letter dated XX XX XXX concerning the above Agreement in which you appear to be claiming repair costs of the vehicle amount to £1,750. I believe that the costs you are claiming in relation to the condition of the car are unreasonably high for several reasons. On receipt of the car at the time of entering into the Agreement, it had already sustained some damage such as [DESCRIBE ANY DAMAGE ON THE CAR ALREADY]. You should be aware that I can only be reliable for damage to the vehicle whilst it was in my possession and it would be unjust for you to claim monies for something which i was not responsible for. Furthermore, you have not yet provided any proof that the repairs to the car was in fact carried out and as I understand it the car was sold at auction without any repair work being performed. Finally, you are under a duty to mitigate your losses and where no such mitigation takes place, this precludes the recovery of such losses that have incurred as you have did not make reasonable efforts to avoid such losses. In the case of the repair bill, the Consumer Credit Act 1974 states that the car only need to be in a reasonable condition and so any repairs should be brought up to a reasonable standard and nothing more. Again, where such repairs have caused the vehicle to be in a state beyond a reasonable condition, this is not recoverable.

It has also come to my attention that you are currently reporting a [default or marker] on my credit file equivalent to the costs of the repair bill. You will be aware that I gave notice to you on [DATE] in which I terminated the Agreement. Moneyway does not have any legal right or authority to place a default or outstanding balance tied to the Agreement for the sum of £1,750 and this is because:

1. the repair bill did not form any part of the total amount payable or any of the monthly instalments under the credit agreement;

2. the Agreement is already terminated and has been since [DATE]; and

3. the repair bill costs are not a recognised debt but an alleged debt which can only become recognised a by the Courts of England and Wales.

By the fact that you are continuing to report this repair bill as something which is owed, you are in breach of Principle 4 of the Data Protection Act 1998 (reporting inaccurate data) in that you continue to report that the Agreement has not expired when it has and that the repair bill is a debt that I owe yet it is not recognised by the court as being something which you are owed. Such breaches are actionable through the civil courts in which damages can be sought due to the negative effect it has on my credit file, which has been highlighted in the Supreme Court case of Durkin v DSG Retail Ltd.

In the circumstances and in the interest of avoiding further costs by both parties, I am prepared to take no further action provided that within the next 14 days, you remove the default from my credit report. Should you fail to update my credit file accordingly, I reserve the right to issue proceedings against you without further notice for an order to remove the default and damages as the court sees fit, including any costs incidental to the proceedings. I shall also notify the Information Commissioners Office as regards to your conduct and failure to comply with the Data Protection Act.

I look forward to hearing from you within the next 14 days.

Yours faithfully,

[NAME]

Absolutely outstanding I will amend accordingly. Thank You.

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi R0b,

Do you have any recommendations of how I outline this which would eliminate the chance of them interpreting what I'm saying to them? I don't mean a full letter but a statement of intent if you will.

If I were you, this is how I would word it and I know you are happy with paying repair costs but you can at least try to bring the price down - amend the wording as you wish.

Dear Sir / Madam,

LETTER BEFORE ACTION: BREACH OF DATA PROTECTION UNDER A HIRE-PURCHASE ARGREEMENT NUMBER [NUMBER] (the “Agreement”)

I am writing to you in response to your letter dated XX XX XXX concerning the above Agreement in which you appear to be claiming repair costs of the vehicle amount to £1,750. I believe that the costs you are claiming in relation to the condition of the car are unreasonably high for several reasons. On receipt of the car at the time of entering into the Agreement, it had already sustained some damage such as [DESCRIBE ANY DAMAGE ON THE CAR ALREADY]. You should be aware that I can only be reliable for damage to the vehicle whilst it was in my possession and it would be unjust for you to claim monies for something which i was not responsible for. Furthermore, you have not yet provided any proof that the repairs to the car was in fact carried out and as I understand it the car was sold at auction without any repair work being performed. Finally, you are under a duty to mitigate your losses and where no such mitigation takes place, this precludes the recovery of such losses that have incurred as you have did not make reasonable efforts to avoid such losses. In the case of the repair bill, the Consumer Credit Act 1974 states that the car only need to be in a reasonable condition and so any repairs should be brought up to a reasonable standard and nothing more. Again, where such repairs have caused the vehicle to be in a state beyond a reasonable condition, this is not recoverable.

It has also come to my attention that you are currently reporting a [default or marker] on my credit file equivalent to the costs of the repair bill. You will be aware that I gave notice to you on [DATE] in which I terminated the Agreement. Moneyway does not have any legal right or authority to place a default or outstanding balance tied to the Agreement for the sum of £1,750 and this is because:

1. the repair bill did not form any part of the total amount payable or any of the monthly instalments under the credit agreement;

2. the Agreement is already terminated and has been since [DATE]; and

3. the repair bill costs are not a recognised debt but an alleged debt which can only become recognised a by the Courts of England and Wales.

By the fact that you are continuing to report this repair bill as something which is owed, you are in breach of Principle 4 of the Data Protection Act 1998 (reporting inaccurate data) in that you continue to report that the Agreement has not expired when it has and that the repair bill is a debt that I owe yet it is not recognised by the court as being something which you are owed. Such breaches are actionable through the civil courts in which damages can be sought due to the negative effect it has on my credit file, which has been highlighted in the Supreme Court case of Durkin v DSG Retail Ltd.

In the circumstances and in the interest of avoiding further costs by both parties, I am prepared to take no further action provided that within the next 14 days, you remove the default from my credit report. Should you fail to update my credit file accordingly, I reserve the right to issue proceedings against you without further notice for an order to remove the default and damages as the court sees fit, including any costs incidental to the proceedings. I shall also notify the Information Commissioners Office as regards to your conduct and failure to comply with the Data Protection Act.

I look forward to hearing from you within the next 14 days.

Yours faithfully,

[NAME]

[jaw1985]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

If you are writing to them then it might be best to spell out exactly why they cannot default you and if they choose to do so then you will consider bringing proceedings against them for breach of data protection (principle 4, reporting inaccurate data) and reserve the right to claim damages as a result.

Hi R0b,

Do you have any recommendations of how I outline this which would eliminate the chance of them interpreting what I'm saying to them? I don't mean a full letter but a statement of intent if you will.

[malnik]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hello all.....
I am about to voluntarily terminate a PCP with Fiat. I did call them and ask options and it was them that said the option to do so as I had paid over 50%. Nice of them!
They said all i had to do was make a time for them to pick it up and they will notify me within 14 days of pick up that its finalised, after seeing the car. They told me that I would be liable for excess mileage, which will be about 1000 miles at 6p a mile.

This all sounds too easy......

I didnt do it at that time as I was gobsmacked I could do this. Now I see what its all about I will do so. Should I still confirm in writing? Is the letter at the front of the forum still valid?
Or do I trust them to do the right thing? No letters, no pictures etc?
Anyone any experience with Fiat?

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi
I'm not sure if my comments are visible as I never seem to get a response. But please, I stand corrected on the BVRLA information I posted. I have gone back as far as the very first post and clicked on the link pertaining to further information and template letters and found the correct information.
Apologies for my incorrect post earlier in this thread.

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

The usual will be compensation for damage to the car beyond reasonable condition given age and mileage and charges for excess mileage i.e. going over your annual quota

[markw1981]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi Rob,

many thanks for the reply.

Do Advantage Finance try anything on once you hand the vehicle back

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi Mark, read this link http://www.legalbeagles.info/forums/...ry-Termination

Take plenty of photos before hand over and don't sign anything that says you agree to be liable for damages.

[markw1981]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Afternoon All,

I VT my car with Advantage Finance and are due to take it to Stoneacre tomorrow to drop off, can you advise of anything I need to know in my benefit or tips on making sure I do not get stitched up at a later date?

Thank you

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

If you are writing to them then it might be best to spell out exactly why they cannot default you and if they choose to do so then you will consider bringing proceedings against them for breach of data protection (principle 4, reporting inaccurate data) and reserve the right to claim damages as a result.

[jaw1985]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

You should argue that because they are putting the amount on your credit file when it did not form part of the monthly instalments they are in breach of data protection, the amount is an alleged amount (even if you agree to pay it). If they have said you owe that much money, there's no harm in challenging it as they might have inflated the costs to incorporate recovering additional monies because you VT'd.

Either way they shouldn't be reporting it as the agreement has ended and that should be reflected accurately on your credit file. The same goes for defaults, they cannot apply a default on your credit file because the repair costs did not form part of the credit agreement so you actually haven't defaulted on anything. You should be able to take action for inaccurate data and claim damages if they refuse to amend the credit file as at the moment it is alleged and the only way of having it recognised is through the courts. Until that point occurs, they are in breach.

However, if you are happy to pay the repair costs then pay and tell them to remove it from your credit file.

Hi Rob,

I was plan on challenging the amount they reported anyway, I was just wanting to check that I was on the correct track and what they are currently doing is in fact illegal. I intend on sending a letter highlighting this because at the moment i am getting nowhere with them. I've had a multitude of conversations with analysts on the phone and they all sing from the same hymn sheet and the conversation normally ends with them sending me a letter about a payment plan and if i don't agree to one they will default me.

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi All,

Firstly kind thanks for the amount of effort a number of people have put into this thread. Thanks to this thread I managed to VT a car I no longer required. Without it i'd likely be stuck in an agreement I no longer required for a few years.

Now, I'm looking for some further assistance on how I deal with the Company now chasing me repair costs.

Firstly I acknowledge that I am responsible for paying the repair costs of the car, I have no issues paying the fee's or the amount involved. The car wasn't in the best condition when it was handed back and I expected a higher bill to be perfectly honest.

What I am looking for clarification on is are they allowed ( Legally ) to claim these costs are still part of the HP Agreement? At present on my credit file it states that I owe the Money Way £1,750 ( Repair Bill ) and this is tied to my HP Agreement. I've had several verbal conversations and they have confirmed the only payment that remains is the repair bill to the car. I had paid 60% of my HP Agreement and from what i'm reading here that agreement with Moneyway should be satisfied on my credit file and then they can make alternative arrangement's to collect the repair costs. Is this correct?

If so, how do I approach Money way about satisfying this on my credit file? What route should I take?

If I've read this wrong then that's fine, I've no issues paying the repair bill but i'd much rather them not using my Credit file and the threat of defaults as a weapon to ensure i do so.

Any advice would be appreciated

You should argue that because they are putting the amount on your credit file when it did not form part of the monthly instalments they are in breach of data protection, the amount is an alleged amount (even if you agree to pay it). If they have said you owe that much money, there's no harm in challenging it as they might have inflated the costs to incorporate recovering additional monies because you VT'd.

Either way they shouldn't be reporting it as the agreement has ended and that should be reflected accurately on your credit file. The same goes for defaults, they cannot apply a default on your credit file because the repair costs did not form part of the credit agreement so you actually haven't defaulted on anything. You should be able to take action for inaccurate data and claim damages if they refuse to amend the credit file as at the moment it is alleged and the only way of having it recognised is through the courts. Until that point occurs, they are in breach.

However, if you are happy to pay the repair costs then pay and tell them to remove it from your credit file.

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi
I did some research last night. If the car is on a lease plan which I'm assuming it is if it's a PCP agreement ( ie you don't own the vehicle until you have made the last payment) the BVRLA have set out clear guidelines as to what is acceptable wear and tear when returning lease vehicles. They have even gone to the lengths of posting pictures to give you a better idea of what's acceptable and what isn't.
It's a real eye opener. Definitely worth checking out. It's pretty much the same as if you went to a vehicle hire company and rented a car for the weekend. Dents no bigger that 5mm in diameter etc are acceptable.
I am VTing my car this week with a small dent in the wing and will be going by the guidelines set out by the BVLA.
I googled BRVLA fair wear and tear
Good luck

Here's a link the the BVRLA Guide:

http://www.hitachicapitalvehiclesolu...-wear-and-tear

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi
I did some research last night. If the car is on a lease plan which I'm assuming it is if it's a PCP agreement ( ie you don't own the vehicle until you have made the last payment) the BVLA have set out clear guidelines as to what is acceptable wear and tear when returning lease vehicles. They have even gone to the lengths of posting pictures to give you a better idea of what's acceptable and what isn't.
It's a real eye opener. Definitely worth checking out. It's pretty much the same as if you went to a vehicle hire company and rented a car for the weekend. Dents no bigger that 5mm in diameter etc are acceptable.
I am VTing my car this week with a small dent in the wing and will be going by the guidelines set out by the BVLA.
I googled BVLA fair wear and tear
Good luck