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

[billydane9]

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

Hi

I have recently VT'd my 6 year old Audi A6. The finance company was Northridge and the vehicle was returned to Manheim.

2 week after returning the vehicle, I have had a letter requesting £290 due to rippled finishes on the bumpers. The letter enclosed photographs, which actually do not show a lot. I took plenty of photographs when I returned the vehicle. The letter also confirmed that the vehicle had been sold.

I'd had the front and rear bumpers repaired prior to the vehicle being returned by a mobile bumper repair company.

The vehicle was in very good condition for a 6 year old car.

My intention is to write back refusing to pay the amount, as I'd kept the vehicle in good repair and condition as required, and to point out that BVLRA guidelines are not applicable to consumer credit agreements.

Would this be the most appropriate course of action for me to take?

Thanks

[R0b]

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

It depends, you could argue that the car is in a reasonable condition given its age and I guess there is no requirement other than perhaps in your agreement to service the car but you would need proof yourself that it is in a reasonable condition in case it is raised by the other side. For example, if you don't service your car for 3 years and you are running extremely low on oil and this causes problems with the engine that is likely to cause further damage then that is a result of you and the potential argument that the car is not in a reasonable condition as the likelihood is that the car will need repairing earlier than expected.

Of course they would need an expert to prove that but can still pose a problem.

decent arguments that prove servicing has been carried out in or around expected timescales will help to disprove that the car is not in an unreasonable state and could be difficult for them to argue otherwise.

[NorthwestKev]

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

Can anybody advise me regarding the servicing responsibilities?

If I'm right in thinking as long as I've paid 50% of my credit and the car is returned in a looked after state there is nothing more to pay even if I've exceeded the mileage? But what if I haven't had the car serviced as agreed?

Thanks in advance

[Booberrie]

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

In regards to the amount due if you're terminating early, say half the agreement amount, does this need to be paid in one lump or can it be done in instalments? I can afford to fork out £8.5k in one go otherwise I would be paying my finance off!!

Help appreciated

Thanks,

Boo

[R0b]

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

Hi Henti,

You are right and this was raised in another post and thought I'd corrected it, i'll amend it now thank you

[Henti]

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

Hi Rob

Just reading your sticky, hope you dont mind me pointing something out but point one is wrong mate.

It says taht a debtor has the right to terminate after they have paid 50% of the total price. It should read, can terminate without any further sums being due etc.

A debtor can terminate an agreement at any time.

99Right 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

Hope you dnt mind me mentioning it.

[R0b]

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

If you have given them plenty of notice in advance to terminate and they decided not to process your termination until after the next due payment that is entirely their choice but that doesn't mean you have to pay them for that month.

I would tell them where to go, just make sure you hold onto that receipt which proves the time of delivery, even make a couple of copies or take a photograph of it in case you lose it.

I would suggest a letter to hat effect telling them you owe nothing.

[Bluearron]

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

Hi,

Thanks for all the Info, really useful, I do however have a question.

I VT'd my car roughly 3 months ago, having paid well over the the 50% required, and today received stating I owe a months payment.

Apparently, they received and logged my VT paperwork 3 days after my March payment date, having already cancelled my Direct Debit at the time of signing the paperwork, they didn't receive the March payment, which they are chasing for. I posted the paperwork well in advance of the date, however it appears the paperwork was sat on for 3days at their end.

Personally, I don't believe I am Liable for the March payment, but I wanted a second opinion?

Thanks

[Vjparry]

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

Yes thanks

[R0b]

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

Who is the lender? Here's a breakdown below and have highlighted the key words.

section 173
(1)A term contained in a regulated agreement or linked transaction, or in any other agreement relating to an actual or prospective regulated agreement or linked transaction, is void if, and to the extent that, it is inconsistent with a provision for the protection of the debtor or hirer or his relative or any surety contained in this Act or in any regulation made under this Act.

(2)

Where a provision specifies the duty or liability of the debtor or hirer or his relative or any surety in certain circumstances, a term is inconsistent with that provision if it purports to impose, directly or indirectly, an additional duty or liability on him in those circumstances.

section 100 limits liability to 50% of the total amount payable. The definition of total amount payable means the following:

total sum payable by the debtor under a hire-purchase agreement or a conditional sale agreement, including any sum payable on the exercise of an option to purchase, but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement

In plain English, what this means is that your liability is restricted to 50% of the total price payable. The contractual term for paying the collection fee under the agreement is inconsistent with s100 and by way of s173, it is void and unenforceable against you.

Does that make any more sense?

[Vjparry]

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

I have read that and it doesn't seem to be going into my head! (I'm blonde) 😁. I don't mind paying the £70 however I have read elsewhere they can't charge you for collection of the vehicle and they are insisting they can not go through with it unless I pay it! Thanks

[R0b]

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

Section 100 in relation to the 50% liability and section 173 is the other one you need. You read them together to understand it fully.

[Vjparry]

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

You will be aware that statute prevents you from levying a charge for the recovery of this vehicle.

Hi could you tell me what statue would prevent them from charging me as they stating there is a £70 collection fee.

Thanks

[R0b]

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

Hi I'm after some advice on our vauxhall zafira. .......

We purchased it in Sept 2015 with help from first response finance

All seemed well and just a little over 30 days we experienced the oil light and engine management lights keep going on and off. Weve attempted to take it back but the co tact numbers we were given are out of order and he doesnt use social media, but typically the lights would be iff on the days we could take to him. It passed its mot abd asked them to look at it but again all was fine and no lights showinf. We regularly check oil levels and top up when needed. During second time we had to attend our recall visits I asked vauxhall themselves what could be the problem and they wanted me to pay £150 just for a diagnostics test! £150 is a lot of money to our family and they stated they still wouldn't be able to definitely tell me what the problem was even with test.

However I am arguing with the finance company about vt'ing the car? The payments are manageable however I'm looking for a route to get rid of this hellish vehicle!

If I vt it now we still have nearly 3k to pay to get us to the 50% mark. However I'd like to argue that it's 'not fit for purpose'

(If there is another thread please direct me as I cannot find one  )

So my questions are as we've only had it since September where do we stand, do I take it back to the dealer and ask him to correct it ----- although this too may be difficult! He had the garage as shirley car sales, some paperwork is in a different name (parkway cars ) but owned by both brothers! He's changed the name of scc and I'm unsure if I should go to either - considering there technically the same company! He scribbled the mileage down in purple colouring pencil onto the official receipt as he had it written down as 54k when it was in fact 78k ! The mot certificate looks photocopied so is there a way of obtaining the original ? I don't mind a little investigation work ha ha ha
Or do I continue arguing with the finance company about it a)being fit for purpose or b) get them to exchange vehicle

Many thanks

As you will see on alot of these threads, you can VT the agreement at any time prior to the final payment becoming due. You will still have to pay the remaining balance up to the 50% mark and if you don't do so within a reaosnable time, which is usually considered 14/21 days maybe longer then the lender will have a right to take you to court over it.

That aside, how long have you actually been complaining about this problem since you received the car?
Is the name of the business a limited company or just a partnership or sole trader?

You may have a claim for misrepresentation regarding the mileage of the car because that will obviously affect whether or not you need things being replaced or repaired sooner than later. There could be counter arguments to that such as you were driving you would have known the mileage and unless you relied on the mileage being 48k then you couldn't really claim on that point.

So you do have a couple of lines of argument it depends on how much you are going to enforce this, your alternative option could be to go to the Financial Ombudsman for a decision which may or may not favour you as they do look at what's fair and reasonable but don't always look and interpret the law so strictly.

[Jcwarren]

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

Hi I'm after some advice on our vauxhall zafira. .......

We purchased it in Sept 2015 with help from first response finance

All seemed well and just a little over 30 days we experienced the oil light and engine management lights keep going on and off. Weve attempted to take it back but the co tact numbers we were given are out of order and he doesnt use social media, but typically the lights would be iff on the days we could take to him. It passed its mot abd asked them to look at it but again all was fine and no lights showinf. We regularly check oil levels and top up when needed. During second time we had to attend our recall visits I asked vauxhall themselves what could be the problem and they wanted me to pay £150 just for a diagnostics test! £150 is a lot of money to our family and they stated they still wouldn't be able to definitely tell me what the problem was even with test.

However I am arguing with the finance company about vt'ing the car? The payments are manageable however I'm looking for a route to get rid of this hellish vehicle!

If I vt it now we still have nearly 3k to pay to get us to the 50% mark. However I'd like to argue that it's 'not fit for purpose'

(If there is another thread please direct me as I cannot find one 😣 )

So my questions are as we've only had it since September where do we stand, do I take it back to the dealer and ask him to correct it ----- although this too may be difficult! He had the garage as shirley car sales, some paperwork is in a different name (parkway cars ) but owned by both brothers! He's changed the name of scc and I'm unsure if I should go to either - considering there technically the same company! He scribbled the mileage down in purple colouring pencil onto the official receipt as he had it written down as 54k when it was in fact 78k ! The mot certificate looks photocopied so is there a way of obtaining the original ? I don't mind a little investigation work ha ha ha
Or do I continue arguing with the finance company about it a)being fit for purpose or b) get them to exchange vehicle

Many thanks