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

[Guest]

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

What an excellent informative thread, I think it should be stickied

D

[crooky777]

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

Mr.Peterbard,

An excellent piece of information. I currently have a post on another forum, under Loan/Debt, where I'm currently in a similar situation. I VT'd my vehicle as I lost my job and couldnt afford it. The finance company sent a vehicle to collect my car, I wasnt in at the time, I was called on my mobile and was asked if someone else was in the house, I explined yes but at that time but not when you arrive. I was simply told to put the documents in the vehicle and leave a key in a plant pot! My first mistake. The car was removed and everything seemed fine. Three weeks later I receive a bill for £1200 for damage to the car. The estimate is from the company who collected the car and who have now auctioned it on. I have tried to explain the situation to the finance company that I have no job and therefore no income as well as I disagree with all the damage they are claiming. The finance compnay have simply sent me an Income and Expenditure form, which goes into great detail.
Not sure where I stand, any suggestions.

cheers


Crooky777

[bazzler]

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

Hi, Many thanks for the VT information. I'm currently going through this with Fortis Lease (Not sure if I can name the company?).

Penultimate payment was 27th November for around £154. Rang up the same day to pay off the remaining £150 in order to reach the 50% of contract mark in order to do a VT.

I sent the template letter with my details in via Special delivery to inform them that I was proceeding with the VT and to organise collection of the vehicle. This was last Thursday they would have received my letter (Sent via SD). I rang up today as nobody had been in touch to confirm receipt of letter (as requested in my letter/template) to be informed that they had sent out the VT documents (via 2nd class post which hey, I wonder if they get 'lost' in the post, hence dragging the process out further) to be read, signed and returned before the collection company would be in touch.

They have warned that I shouldn't cancel the direct debit for Decembers payment as that would be voiding/defaulting on my contract and I get the impression that they're going to drag this out for as long as possible and take a payment at the end of December.

Also, they claim that I MUST be there at the time of collection/inspection and that I cannot leave the car at the dealer where I'm buying my new car, despite the dealer saying they do this nearly every week for customers, and they're quite happy to transport my car to a designated auction site if needs be.

They appear to be putting obstacles in my way in contradiction to the first post of this helpful thread.

I get nowhere when talking to the generic call handler, would I be better off asking to speak to a manager next time I ring as it appears they're not taking my initial letter as completion of the VT.... and I presume the paperwork they're sending for me to sign will include new terms that weren't on my original finance agreement that will tie me into paying extra money that I shouldn't need to?

Many thanks for any help and opinions forthcoming

[labman]

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

I hope you don't mind - I've answered your points by writing in your post. My comments are in red. Hope they help!:beagle:


Hi, Many thanks for the VT information. I'm currently going through this with Fortis Lease (Not sure if I can name the company?).

Penultimate payment was 27th November for around £154. Rang up the same day to pay off the remaining £150 in order to reach the 50% of contract mark in order to do a VT.

I sent the template letter with my details in via Special delivery to inform them that I was proceeding with the VT and to organise collection of the vehicle. This was last Thursday they would have received my letter (Sent via SD). I rang up today as nobody had been in touch to confirm receipt of letter (as requested in my letter/template) to be informed that they had sent out the VT documents (via 2nd class post which hey, I wonder if they get 'lost' in the post, hence dragging the process out further) to be read, signed and returned before the collection company would be in touch.
You do not have to sign anything and should not complete or sign any forms other than the condition report - they will almost certainly try to make money on this.


They have warned that I shouldn't cancel the direct debit for Decembers payment as that would be voiding/defaulting on my contract and I get the impression that they're going to drag this out for as long as possible and take a payment at the end of December. You have terminated the contract already. You are entitled to cancel the next payment - they're just trying to get more money out of you.

Also, they claim that I MUST be there at the time of collection/inspection and that I cannot leave the car at the dealer where I'm buying my new car, despite the dealer saying they do this nearly every week for customers, and they're quite happy to transport my car to a designated auction site if needs be. This is untrue, but you might want to be there because of the condition report. Normal advice is to take detailed pictures of the vehicle on the day of collection, with a copy of that days newspaper in each photo as proof of the date. This way there can be no argument over the condition of the vehicle.

They appear to be putting obstacles in my way in contradiction to the first post of this helpful thread.

I get nowhere when talking to the generic call handler, would I be better off asking to speak to a manager next time I ring as it appears they're not taking my initial letter as completion of the VT.... and I presume the paperwork they're sending for me to sign will include new terms that weren't on my original finance agreement that will tie me into paying extra money that I shouldn't need to? As above - you shouldn't sign anything other than the condition report. You have terminated the agreement full stop. They cannot argue with that, they just don't like people doing it, especially if they know their rights.

Many thanks for any help and opinions forthcoming

[bazzler]

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

Many thanks for taking the time to answer my queries, it has put my mind at rest that I just need to be firm with the company in question. It just feels like you're getting nowhere when arguing with a call handler that won't go off script... it would be ideal to leave my car with the dealer I'm buying from as it's half an hour away and would require somebody to give me a lift. I can always drive there on the day of inspection and collection. It would also be good to have a semi-independent witness to it, i.e. the dealer.

[bazzler]

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

A quick update:

Rang back this morning and again, got the same answer about the paperwork needing to be signed and returned first and that I shouldn't stop my direct debit.... I quoted some points from this thread about not having to sign any other paperwork from them and that my letter is enough to inform of the VT and she said, "er... who told you that?" I just said I'd had some legal advice on the matter so she said wait a minute, I'll just ask a manager...

She returned 5 minutes later "Yes sir, he says you are infact correct.... however, this paperwork gives yourself and ourselves further clarification" also I told her that I would be cancelling my direct debit as the VT was active and she said that is fine.

They still refuse to collect the car or do an inspection at my new car dealership, and insist I need to get the car to manheim auction house for the inspection to be done there.

[miliitant]

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

manheim auction house for the inspection to be done there.

how far away is the aution house to where you live

[bazzler]

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

About 30 miles (35 minutes) according to google maps... Washington, Tyne & Wear is the closest

[miliitant]

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

to be honest that is a reasonable distance for you to take the vehicle

at the end of the day, the vehicle belongs to the finance company, not you

i am surprised though at the attitude of the finance company, i would have thought they would get better value through a trade in rather than an auction after auction costs are put into the equation

you now cant be seen to be unreasonable

take the car to the auction house as directed by the auction house

take photos of the vehicle inside and out from every angle

as soon as you have surendered the car to the auction house, then you cancel the direct debit

[bazzler]

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

Thanks for the replies... So am I now at the point when I can begin to arrange dropping the car off at Manheim? (regardless of whether I do or don't sign this mysterious paperwork they are sending me).

Edit: Received the 'paperwork' today. Basically, it look like they want me to sign this to agree to new terms they've invented in order to proceed with the VT. i.e. Lots of charges heading my way for parts, re-tests if parts need fitting etc etc.

Has anyone any experience of doing the VT and not signing the extra paperwork they send?

Cheers

[miliitant]

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

what they are saying is crap

sign nothing as you will be signing away your rights under the consumer credit act

they have told you to take it to the auction house

take that letter with you and drop it off at the auction house and get the vehicle condition report

if they keep this up i would be charging them storage charges

[bazzler]

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

The car did not come with a service book/log book when I bought it from the dealership. I presume this should not matter when I hand the car back as they were quite willing to lend the money on a car without one?

[miliitant]

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

when you purchase a second hand car, it is without doubt been purchased from an auction, that is why no service book etc

your only duty is to hand the car back to the finance company or take it to an auction house as directed.

they may send a bill for excessive damage, say the front wing has been caved it but the condition of the vehicle goes on its age

so a five year old car would expect to have stone chips, a few nicks

that is why i said get the vehicle condition report from the auction house and take losts of photographs at the auction house for evidence if needed

[bazzler]

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

when you purchase a second hand car, it is without doubt been purchased from an auction, that is why no service book etc

your only duty is to hand the car back to the finance company or take it to an auction house as directed.

they may send a bill for excessive damage, say the front wing has been caved it but the condition of the vehicle goes on its age

so a five year old car would expect to have stone chips, a few nicks

that is why i said get the vehicle condition report from the auction house and take losts of photographs at the auction house for evidence if needed

Thanks for all your advice!

The car has been extremely well looked after by myself and have only done 6,000 miles in 2.5 years! bringing the mileage up to 23,000 in total for an 07 reg car. There are a few slight, and I mean slight marks on the car/alloys as you'd expect, but no bodywork damage at all.

I presume now I just ring them back up, say I'm not going to sign the additional paperwork and ask to organise a time to take the car for inspection and dropoff...then cancel DD?

[miliitant]

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

just phone up the finance company and ask when is the best time to take it to the auction house so they will be expecting you to do a vehicle condition report

dont mention about the added paperwork as it is irrelevant to your request to vt

when they have taken delivery of the vehicle, then you cancel the direct debit

keep me updated when you speak to the finance company