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

[thewanderer]

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

Hi,

I have a slightly different situation to most,

Im 17 months into a 42 month PCP, and have paid £2500 less than the 50%. Im relocating to another country, and don’t have the option to take the vehicle with me.
Ive contacted the finance company and advised them Im VTC’ing the vehicle which was no issue.
My first query is to confirm if I need to complete the £2500 payment for them to collect the car, (I dont believe that I do) , and if I can cancel the direct debit before making that payment without being recorded as defaulting on the PCP.
My second query is that I was told it will take 2-4 weeks to have the vehicle collected (and it will go straight to British Car Auctions). I feel this is unreasonable, and as Im leaving the country Im planning to leave the car on my drive, with docs and keys with a relative. (The vehicle is already SORN’ed and insurance cancelled).
Am I also able to leave the vehicle on the drive with no insurance with liability transferred to the finance company, on the basis they have been advised of the VTC request. I have taken extensive photos with a dated newspaper, but am concerned that I may get charges for “damages” between yesterday (when I took the photos) and the date of collection.

Thanks in advance for any help.

[R0b]

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

You could address the payment and say that you have paid over 50% of the total amount payable, you gave notice to terminate on X therefore any payments after that date are not owed.

[Kellster]

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

Best off putting it in writing, so you have evidence of them being notified. wouldn't bother sending it recorded delivery first or second class is fine and ask for certificate of postage for the letter as proof. Keep a copy of that stored away in case you need it.

If you look around the other threads here -> http://www.legalbeagles.info/forums/...nce-and-Issues

there's a few examples of letters about collection of the car and threatening to terminate the tax and notify the lender, use that as a starting point.

Perfect, I'll get that done and sent off ASAP. Should I just ignore what they say about payment etc then?

[R0b]

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

Best off putting it in writing, so you have evidence of them being notified. wouldn't bother sending it recorded delivery first or second class is fine and ask for certificate of postage for the letter as proof. Keep a copy of that stored away in case you need it.

If you look around the other threads here -> http://www.legalbeagles.info/forums/...nce-and-Issues

there's a few examples of letters about collection of the car and threatening to terminate the tax and notify the lender, use that as a starting point.

[Kellster]

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

The question now is what would you like to do? You could have a few options in relation to the car:

1. Charge them for storage at a reasonable amount £5 / £10 per day until they collect it, or provide a maximum time you will store it e.g. 30 days at £5 / £10 and then remove it from the drive. If you go down this route then any monies you want to recover then you will need to bring a claim to court.

2. Inform BH that they have had more than a reasonable amount of time to collect the car then you will notify the DVLA that they are now the registered keeper and remove it from your drive. Liability then rests with them as they have specifically chosen not to collect it and you are no longer responsible as the agreement has ended. You should also explain that all tax and insurance will be cancelled also.

You could even go further and state that because the vehicle is on the drive and you no longer give permission for it to be there, BH are actually trespassing and so that could be another avenue to bring a claim if you wished to do so.

If you are going to notify the DVLA, do it online (https://www.gov.uk/sold-bought-vehicle) and don't move it on a public road until you have received confirmation from them. It is your responsibility to notify them and if you move it then it gets picked up before the details have been amended, it could be you that is liable for the costs.

Thanks again for replying R0b. I think probably go with number 2. Just want the thing picked up now as its parked in my mums driveway and no doubt she'll be moaning about it soon enough. Should I call them or write another letter?

[R0b]

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

Hi R0b I sent the letter at beginning of June. I've definitely paid over 50% as its due to end in Feb 2017

The question now is what would you like to do? You could have a few options in relation to the car:

1. Charge them for storage at a reasonable amount £5 / £10 per day until they collect it, or provide a maximum time you will store it e.g. 30 days at £5 / £10 and then remove it from the drive. If you go down this route then any monies you want to recover then you will need to bring a claim to court.

2. Inform BH that they have had more than a reasonable amount of time to collect the car then you will notify the DVLA that they are now the registered keeper and remove it from your drive. Liability then rests with them as they have specifically chosen not to collect it and you are no longer responsible as the agreement has ended. You should also explain that all tax and insurance will be cancelled also.

You could even go further and state that because the vehicle is on the drive and you no longer give permission for it to be there, BH are actually trespassing and so that could be another avenue to bring a claim if you wished to do so.

If you are going to notify the DVLA, do it online (https://www.gov.uk/sold-bought-vehicle) and don't move it on a public road until you have received confirmation from them. It is your responsibility to notify them and if you move it then it gets picked up before the details have been amended, it could be you that is liable for the costs.

[Cookst1]

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

Hi,

I VT My agreement for car 3/5/16 with my last pyt to take it over 50 % on 07/5/16. After phoning for weekly for about 3 weeks to check they had received the car ( I dropped it off at an agreed Auction centre as advised) they could not confirm where the car was! I phoned the auction centre who advised they still had the car and asked me to ask finance company to email them to arrange collection. so that was the end of May and I received an arrears letter last weekend advising I have missed 2 payments! Phoned them straight up and they advised to ignore letter as automated from system but that they still had not got the car! they advised company that they use no t replied to email yet and to callback. I phoned yesterday and been advised I owe £357 pounds for repairs to the car! I am stunned at this as I took care of the car and was in pristine condition and also photographed the car on 3/5/16 to show how good condition it was in. Can they charge me for this? Especially if I do not know where the car has been for 2 months! I was advised to sign form as part of process of handing the car back and worried they will now use this myself agreeing to these ott charges!
Any help or advise greatly appreciated!

Thanks

[Kellster]

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

Well the first question is, do you owe the money? If so you need to pay it, if you have already paid 50% or more when terminating then you do not need to pay it provided that you gave notice to terminate before the amount was due.

When did you send the letter to terminate the agreement?

Hi R0b I sent the letter at beginning of June. I've definitely paid over 50% as its due to end in Feb 2017

[R0b]

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

Well the first question is, do you owe the money? If so you need to pay it, if you have already paid 50% or more when terminating then you do not need to pay it provided that you gave notice to terminate before the amount was due.

When did you send the letter to terminate the agreement?

[Kellster]

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

Yes, absolutely, use R0b's template and remind them that the Consumer Credit Act prohibits them from levying charges for collection of the vehicle, excess mileage or any other charges so long as reasonable care has been taken of the vehicle.



There are two issues here. Firstly unless you have declared the vehicle SORN (i.e. officially told the DVLA that it is being stored off-road) then you have a legal obligation to have insurance on the vehicle even if it is not on a public road.

However from the date of the termination of the HP agreement the vehicle is no longer your concern and so in my opinion if they are collecting on a day after the agreement termination then insurance is for them to sort out.

Hi guys, just a little update. I sent that letter off a day or so after posting and I haven't heard anything back from BH at all, until yesterday. Letter dated 13 July stating the following;

Overdue amount £200.70, including fees of £40.03
Late payment interest charged but not included in overdue amount £0.24

Dear....

This is a Notice of Default Sums and is given in compliance with the Consumer Credit Act 1974.

Date Default Sum become payable - 13/07/2016
Nature of Default Sum - 10 Day collection activity fee - £12.00

*We request that you pay this amount without delay.

This notice does not take account of default sums which we have already told you about in another default sum notice, whether or not those sums remain unpaid.

You need to pay us £200.70 to bring your agreement up to date.

etc etc etc


Just wondering if you guys can help on what to do now. Car is still sitting in my mums drive as they haven't collected it. As i said i'd received nothing since sending off Robs letter regarding collection fees.

[Kevinh]

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

Hi, I have written a letter to the car finance company, using a template from yourself, for voluntary termination, I sent via registered post, I asked them to confirm they've received my letter, by giving my mobile number, which they have, offering me more time to pay, once I told them no thankyou, they asked if the vehicle was mot'd, which ran out on the 12/07/2016, they told me they won't take the vehicle back unless it has a full mot, must I now have the vehicle mot'd?

[R0b]

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

Gordon, they cannot claim for the remaining balance left on the contract. This is clearly against the provisions of the CCA and any attempt to do so could amount to fraud/deceit/aggressive trading practices.

Are you able to upload a copy of that letter? You can take a photo of it and by clicking on the advanced post button, there is a paperclip button you can upload from if you are using a computer. Make sure to redact any personal information

[Gordon T]

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

Hi Rob,

It was Close Brothers Motor Finance.
Yes i followed the letter as described at the start of this, I only received a phone call of them trying to persuade me to sell the car privately but when i continued with i want to VT the car they agreed and confirmed they had received my letter. They didn't ask me to sign any documents etc etc. An yes i told them i was surrendering the car under section 99.
From reading the letter it basically says they got less at auction than to cover the cost of the finance so i am liable for this, however it doesn't say that in such just it has a value of the sale minus the amount left to pay then that amount is due from me.
It also says that this notice is being issued to you because you are behind with your payments under the above credit agreement. this is a serious matter and we urge you to call us to reach a mutually satisfactory arrangement.
If that was the case surely if they sold the car for more money they would be refund me the money which i know they wouldn't do this.

I'm unsure what to do next they have asked me to phone them if i want to talk about it however in my eyes i have done everything correct and i feel they are trying to pull a fast one to get more money out of me.

[R0b]

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

Hi Gordon,

Who is the finance company? they shouldn't be issuing any sums in arrears or default notices as the agreement is now terminated. The purpose of voluntary termination is to limit your liability and if they are trying to claim further monies from you then that will be considered as fraud/deceit.

Have you evidence of them accepting your termination or at least acknowledging? Did you write to them saying you wanted to surrender the car or terminate under section 99?

[Gordon T]

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

Hi

I have recently VT my car following your advice and used the letter at the start of the thread. The car was picked up by the auction house with a quick inspection carried out and no faults found to the car.

Today i received a letter from the finance company saying i owe them £2077. They have basically said because the sale of the vehicle was lower than the payments left i am due them this figure. I done everything correct i had paid more than 50% etc.
Do i have to pay this? They are stating i do under 86B of the consumer credit act.

Thanks in advance