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

[Bumblebees]

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

Thanks for the advice,
we've just been told that if we voluntary terminate without having paid the 50% first we will then become liable for the full amount of credit and not just the 50% plus charges of excess mileage etc that they try to pile on us, is this incorrect and according to section 99/100 we are only liable for the 50% as you previously stated?

[PaulT87]

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

It's the car finance company horrible people great at selling but after sales etc are the worst I have ever come across its also strange the car isn't even recoded on my credit file so not sure what they do as I thought any credit u take it shows on your credit report etc

[R0b]

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

S.99 states you can terminate at anytime before your final payment, there's no caveat to that, but expect the lender to say they won't accept your VT until you have paid up to the 50% mark which of course is not true.

Section 100 relates to damages for reasonable condition of the car and anything that has accrued. So this will be the remaining balance to make up the 50% plus any missed payments and any damage to the vehicle which is unreasonable. Reasonable condition of the car is subject so always advised to take plenty of of photos prior to handover and don't sign any documents from the agent if they ask.

if you are sending by recorded delivery wait until it has been received and then add an extra day to be on the safe side before cancelling your DD. Be prepared they will tell you that a missed payment might unit charges etc or you need to setup the DD.

Not sure who the lender is in your case but try to keep everything in writing and only discuss over the phone if you really have to, then send an email to summarise what was said in the call so there is a record. It's easier to argue something in writing thanks it was done verbally

If you can afford to pay it then pay it off as soon as possible, the result of doing his could land you with a CCJ which will be in your credit file for 6 years if you fail to pay up so you need to make sure this is the correct route for you

[Bumblebees]

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

Hi, was directed to this site and have spent all weekend reading up on it, thank you for the invaluable advise.
Was wondering if it were OK to ask a couple of questions to clarify a few things in mind and give me the confidence to go ahead with a vt....
A little bit of back ground info, we have a car on a hire purchase agreement and as of yet are not half way through. Agreement was taken out in August 2014.My husbands hours have been cut to part time and were expecting another baby and the payments are too high for us to afford.
The total finance including interest etc was £8215.20
As of this month we have paid off £3012.24..... A shortfall of £1095.36 to get us to the 50% mark of £4107.60.
Questions are as follows:
1) We can vt before 50% has been paid due to act 99 of the consumer credit act 1974?

2) in the letter to finance company it advices to state we will be liable for charges, using the amount calculated under formula in section 100 of the consumer credit act 1974. Would this amount be the £1095.36 to get us to the 50% mark. If that is the amount are we liable to owe this in one lump sum or can it be treated as a debt and we come to an agreement to pay the finance company off in smaller manageable amounts?

3) our next payment is due July 5th, if I send the letter to VT this week via recorded next day delivery can I cancel the direct debit as I will of served notice of the termination and therefore not have to make the payment?

Thank you you in advance for any advice I receive on the above.

[Bumblebees]

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

Hi, was directed to this site and have spent all weekend reading up on it, thank you for the invaluable advise.
Was wondering if it were OK to ask a couple of questions to clarify a few things in mind and give me the confidence to go ahead with a vt....
A little bit of back ground info, we have a car on a hire purchase agreement and as of yet are not half way through. Agreement was taken out in August 2014.My husbands hours have been cut to part time and were expecting another baby and the payments are too high for us to afford.
The total finance including interest etc was £8215.20
As of this month we have paid off £3012.24..... A shortfall of £1095.36 to get us to the 50% mark of £4107.60.
Questions are as follows:
1) We can vt before 50% has been paid due to act 99 of the consumer credit act 1974?

2) in the letter to finance company it advices to state we will be liable for charges, using the amount calculated under formula in section 100 of the consumer credit act 1974. Would this amount be the £1095.36 to get us to the 50% mark. If that is the amount are we liable to owe this in one lump sum or can it be treated as a debt and we come to an agreement to pay the finance company off in smaller manageable amounts?

3) our next payment is due July 5th, if I send the letter to VT this week via recorded next day delivery can I cancel the direct debit as I will of served notice of the termination and therefore not have to make the payment?

Thank you you in advance for any advice I receive on the above.

[R0b]

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

I guess your other option then is to take the call see what they say and follow up with a email of what was said. If it's been 4 months then you can go to the ombudsman and I would also threaten to cancel the insurance and tax and inform the DVLA of the change of registered keeper.
I think 4 months is more than long enough to collect the car and their unreasonable conduct of not responding in writing would be shown. They could have confirmed everything in writing a long time ago. Who is the lender again?

[PaulT87]

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

I have tried threatening with the ombudsman in my last email saying they had 14 days and was going to start charging them for storage and the fact the cars discs and pads are starting to rust with it not moving for 4 months which I also stated I wasn't going to be held liable for the damage to the car that's being caused cause they won't pick it up and are just refusing to reply by email and I feel they are gonna try and pressure me on the phone so that's why I want proof in writing

[R0b]

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

Hi Paul, you could talk over the phone if you wish, if your uncertain of what might be said if you have a smartphone you could download a call recording app and then email them saying that you are happy to discuss over the telephone and the call will be recorded.

Alternatively you could respond by email and question why they are not prepared to correspond in writing which you feel is completely unreasonable and if they refuse to do so then clearly they must be wanting to say something that is not above board if they will only discuss by phone. At that point you could also say the above about call being recorded if they want to talk by phone.

You could also say you will raise a complaint to the Ombudsman if they do not respond in writing within the next 7 days.

Plenty of options available they just sound a bit dodgy if they're not willing to put in writing and rather discuss by phone.

[PaulT87]

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

Hi Rob another quick question to where I stand I have been at loggerheads with the finance company for 4 months now the email that was forwarded to the management she has being trying to ring me although I have stated on numerous occasions that I wish to talk via email or post so there's a paper trail but she's refusing stating I must ring her it's like they have completely ignored my vt as she keeps on saying I must ring about my agreement asap I sent an email last week stating I had not long got out of hospital with serious pneumonia which I ended up in intensive care with so could only deal by email she rang straight away leaving a voice mail saying I had to ring her totally again disregarding what I had asked for

[Kellster]

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

Many thanks R0b and Hari, sending the dispute letter away today. You guys are so helpful

[R0b]

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

Ah ok makes more sense now.
Thanks for that I wasn't 100% sure how the settlement figure was calculated.

I have figured out that I have all in all paid around £4200 which leaves circa £1.5k outstanding to reach the 50% mark.
Where do I stand in this situation? Do you think I could still terminate and maybe pay the outstanding monies in instalments?

Who is the lender? You will certainly come up against it as they will say you have to pay the money then terminate the agreement but the law says you can terminate at any time, and if you do terminate, you will become liable for the outstanding amount which is capped at 50%. They will probably threaten to take you to court or put a default on your file etc. but if you are able to pay it, then I wouldn't see any issue. You always have the option of complaining to the Financial Ombudsman but they are not very clued up I'm afraid and simply look at the terms of the agreement and whats fair and reasonable.

[Charnewland]

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

@Charnewland, an early settlement figure wouldn't really give a true representation of how much you have paid because on early settlement you are entitled to a rebate which is a deduction of interest based on the time you settle and the end of the agreement.

The correct approach and simplest is the way Amethyst has stated and that is to work out what your monthly instalments are and multiply by the number of months paid, if it's more than £5,981 then you will have reached that point to VT. Usually if you've passed the halfway point of the term of the contract then you will have more than likely hit the required amount (subject to the type of agreement you have entered into).

Ah ok makes more sense now.
Thanks for that I wasn't 100% sure how the settlement figure was calculated.

I have figured out that I have all in all paid around £4200 which leaves circa £1.5k outstanding to reach the 50% mark.
Where do I stand in this situation? Do you think I could still terminate and maybe pay the outstanding monies in instalments?

[R0b]

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

[MENTION=86562]Kellster[/MENTION], I agree with Hari and if the agreement is terminated the you are not under an obligation to insure the vehicle until collection, the agents will have their own insurance cover and it is the job of the lender to ensure tax has been paid. Of course the lender will tell you something different however and say you need to in accordance with the terms of the agreement.

[MENTION=86567]Charnewland[/MENTION], an early settlement figure wouldn't really give a true representation of how much you have paid because on early settlement you are entitled to a rebate which is a deduction of interest based on the time you settle and the end of the agreement.

The correct approach and simplest is the way Amethyst has stated and that is to work out what your monthly instalments are and multiply by the number of months paid, if it's more than £5,981 then you will have reached that point to VT. Usually if you've passed the halfway point of the term of the contract then you will have more than likely hit the required amount (subject to the type of agreement you have entered into).

[Amethyst]

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

[MENTION=71570]R0b[/MENTION]

Wait for the expert - do you have a copy of the agreement as the figures should be spelt out on there. If your total amount payable is £11963.14 then yes if you have paid more than £5981 you should be eligible to VT as you've paid more than 50% of the amount. Can you work out how many months you have paid at £what amount plus any deposit/advance payment you paid ?

Of course you could ask Motonovo how much is owing before you can VT.

[Charnewland]

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

Hello all.

I'm new to this forum and really need some expert advise on my current situation.

I have a car which I purchased on finance through MotoNovo via car dealers in November 2014 for 4.5 years.
My financial situation has now changed and am unable to pay my monthly payments..
I asked Motonovo for a settlement figure out of interest, which they quoted to be £5695.81.

My Total amount payable is £11,963.14 which 50% of this is £5981.71. Does this mean I am able to do a Voluntary Termination seeing as my settlement figure is less than the 50% of the TAP?

Apologies if I have this wrong, I do find this very confusing!

I would really appreciate someones help

Thanks!