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

[jaw1985]

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

[Kellster]

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

So this morning I received another notice letter from BH saying that agreement balance is £5039.98 with arrears of £389.40!?

This is seriously stressing me out now, which I assume is what they intend to do but being pregnant I do not need the undue stress. I am tempted to call them as I need this resolved.

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

Hi I just wanted some clarification on the excess mileage.

Is excess mileage chargeable? I am in the process of VTing my car, it is being picked up in 3 days. It states on my agreement that the finance company have the right to charge 10ppm for excess mileage but I have read somewhere that actually they are not allowed to do this and excess mileage charges are not enforceable.

Can someone please clarify.

Thanks

[mizzmjm]

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

I have sent a copy of the above letter to the finance company, and they have been in touch to say that I have to pay a £70 fee for them to pick the car up from me or I can take it to bristol which is at least 2 hours drive from where I live. They say I signed the agreement which included this clause so I have to pay or deliver. This is the only bone of contention with them. In your template you refer to 'statute' preventing them from levying this charge. Can you tell me which statute please so that I can get back to them. thank you
Please send me/us details of how the vehicle can be returned to you.
You will be aware that statute prevents you from levying a charge for the recovery of this vehicle; guidelines also state that if you require me to deliver this vehicle it must be no more than a short (reasonable distance) from my registered address.

[R0b]

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

Yes I can see that you have paid more than enough there.

When was the date of the original letter sent?

As I suggest, a further letter to BH enclosing copies of the letter explaining that you have retained proof of the letters being sent and you consider that the agreement has been terminated for some time. The default notice no longer applies as you have complied with the requirements, no further monies are owed (provided you terminated before the payment was due, if it was after then you do owe the money but is considered a debt as the agreement has been terminated).

I would also suggest to put them on notice that any attempt to place a default on your credit file will be deemed a breach of data protection and you reserve the right to commence legal proceedings against BH for inaccurate data and damages as a result. You could also do one of two things about the car:

1. tell them that the car is currently parked on a drive and consent is no longer given for the car to remain there. Therefore you require them to contact you within the next 7 days (put a contact number in here) to arrange collection. If they fail to do so then they will be trespassing and you will have the car removed from the drive and put onto the public highway and also make them aware that the tax and insurance has already been cancelled.

2. Instead of removing the car you could suggest bringing proceedings for trespass, although if it is at your mother's house on the drive, she is likely to be part of the claim with you as an interested party.

I'm not sure if you have informed the DVLA of a change of registered keeper but if not, then you would be wise to do this first and wait for confirmation that it has been updated. If you choose option 1 and move the car before it has been updated and the car is picked up for no insurance or tax then it will be you not the finance co. who is liable. You can do this online at https://www.gov.uk/sold-bought-vehicle


I am happy to look at a draft letter before you send it off if you like.

[Kellster]

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

Hi Kellster,

Have you retained proof of your letters being sent to them i.e. certificates of postage from the post office?

Perhaps the next stage is to write a further letter, attaching copies of the previous letters you sent to them informing them that the agreement is already terminated, they have failed to acknowledge it at all and have failed to collect the car.

Is the car on a drive or on the public road?

Hi R0b thanks for replying.

Yes I've retained all receipts and copies of letters so I can copy them and send to BH.

The car is in my mothers driveway at the moment as I've had to cancel insurance. Couldn't afford to pay insurance for two cars (we've had to buy a 7 seater as twins on the way).

I don't know where they have got £160.67 arrears from. That worries me in case I am due them something but I paid £188.70 to them on 3rd June and I VT'd end of May, also as you can see I've paid 8 grand so over 50%

[R0b]

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

Hi Kellster,

Have you retained proof of your letters being sent to them i.e. certificates of postage from the post office?

Perhaps the next stage is to write a further letter, attaching copies of the previous letters you sent to them informing them that the agreement is already terminated, they have failed to acknowledge it at all and have failed to collect the car.

Is the car on a drive or on the public road?

[Kellster]

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

[Kellster]

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

Hi R0b,

just wondered if this response sounded ok? Im a bit nervous sending a letter with legal jargon in it and sounding a bit silly, or quoting incorrect things.

Dear Sir/Madam,

Re: Voluntary Termination

Agreement Number: ****
Vehicle Registration: ****

I am writing further to your letter dated 20 July 2016.
You will be aware that the Consumer Credit Act limits my liability to half of the total amount payable under the agreement but excludes any sum payable as a penalty, compensation or damages for a breach of the terms of the agreement. Such terms imposed are inconsistent with my rights under the Act and are therefore deemed void and unenforceable.

I have receipts of letters that I sent to you, firstly 31/05/2016 to advise that I wished to terminate my agreement with immediate effect. Then following your letter dated 3/06/2016 I wrote to you (13/06/2016) to advise that I am under no obligation to pay any fees for the collection of the vehicle. The Consumer Credit Act 1974 explicitly states that, my liability under the agreement is limited to half the total amount payable and any terms under the agreement which imposes additional liability directly or indirectly is strictly prohibited by the Act. As such, I shall not be paying any collection fees.

May I remind you that I wrote to you on 25/05/2016 confirming termination of the vehicle, allowing 14 days for you to collect the vehicle. This period has since expired and I shall therefore cancel the remaining tax and insurance and return the V5C document to the DVLA informing them that you are now the registered keeper of the vehicle, and any subsequent liability shall rest with you.

I would therefore urge you to arrange collection of the vehicle at the earliest opportunity to avoid any issues with the vehicle. Alternatively, I am happy to deliver the vehicle to a specific location provided that you confirm in writing to agree to pay all reasonable fees in doing so.

Yours faithfully,

So i sent that letter on 27/7 and have received a letter dated 28/7. Not sure if this is a cross over but they still haven't acknowledged any letter apart from my first one stating i wished to VT.

I have attached an image of the letter received, not sure what to do now.

[stdjmax]

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

Can I ask if you have any good ideas how you can delay paying the settlement fee after collecting the vehicle ?

[alanstitch]

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

Hi,

I want to VT my Nissan financed using MotoNovo.

The car has several scratches, some hairline and one major scratch (panel and bumper) near to boot where my wife reversed off our drive too closely to a brick pillar. The rest of the vehicle is in good condition for it's age etc.

My question is I have yet to get a quote to fix the major scratch, but I am assuming that I can't hand it back with this damage as they can pursue me for costs to fix this, which I assume would be inflated?

The other scratches I have zero clue how they have occurred - I personally believe the paint finish is poor as for example where the handles are there is several scratches here - which have never occurred before in previous vehicles.

I obviously don't want to pay to have it put right if it's not absolutely necessary and have read elsewhere you don't have to fix issues like this?

Matt

[R0b]

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

Your choice, I've not known anyone to explain why they are VT'ing because there is no obligation to explain your reasons but that you are terminating. I cannot see any harm in telling them if you want to though

[stdjmax]

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

Oh I see
One more thing regarding the letter you have listed here!!!
It is a bad idea to say the reason for voluntarily terminating the aggreament ?
(for example seat is very uncomfotable )

[R0b]

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

Why do you believe the dealership is obligated to address the seat issue? Are they also the finance company too?
The dealer more than likely is there to sell the car to the finance company and therefore the finance company then hires it out to you. I don't understand their liability to you in that respect.

As for the HP form, I would advise against it but entirely your choice. Just be aware if you sign it then you might cause yourself much bigger problems down the line if you do.

As for the actual VT, have you written to the finance company to officially terminate the agreement? Termination of the agreement happens regardless of whether or not the car is collected, VT does not happen on the condition that the car must be collected first. So if they choose not to collect it then it is simply their choice, but if you own a drive and its sitting there, and you don't consent to it being there then they are trespassing effectively. Equally, you can't be obliged to continue the tax and insurance beyond the date of termination.

They will probably insist that you pay up before collection but I would ask them to point out specifically where in the Consumer Credit Act does it say that termination is only effected once 50% of the total amount payable is made. It says you are liable but does not mean that it must be paid before the agreement is terminated.

[stdjmax]

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

Hey I am new to this ....

I had to VT my HP (before the half of the price) because I had severe lower back pain and that was keeping off from working. I could not drive the car any more. It costed already so many visits to the chiropactor.

The dealeship failed to addresss this problem and also there was not option to remove the car seat and install another one because of the seats airbags.

The dealeship said ok to VT but there are asking to sign their HP form (which it seems here you are suggesting no) and pay the remain half agreement to collect.

I can delay this ... right? CAn I ask compensation because they have fail to address the issue with the chair?