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

I think that a court would consider the vehicle was still under hire, where the hirer had not given the creditor the opportunity to regain possession of his goods.

[TheBoomerang]

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

I think that a court would consider the vehicle was still under hire, where the hirer had not given the creditor the opportunity to regain possession of his goods.

I see, that's great, thanks.

[TheBoomerang]

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

I would say that two weeks notice is sufficient then, i.e letter in by middle of april

[Guest]

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

I would say that two weeks notice is sufficient then, i.e letter in by middle of april

Yes that is usually what I recommend. If your total annual repayments are less than 1500 you have to give one months notice however.

[TheBoomerang]

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

Mine are 175/m, thanks again!

[Furryhobnob]

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

Hi guys, have just came across this thread and joined up and would appreciate some help, my partner had a 207 with Peugeot under pcp which she vt last month after paying £8400.20 of which the total amount to pay was £14797.80 so she's above the 50 percent, she told them she needed 12000pa as her work is 20 miles away but her contract says 6000pa, at the time of them picking the car up the mileage was 37055 so according to rms receivables she owes £1372.57 for excess mileage, I did a little digging around and got her to email them quoting she owes nothing under the cca 1974 but they have replied saying she's got 10 days to pay or they will report her to the fraud department who will likely take her to court, they originally said she also owed £120 for damage to 2 alloys which wasn't on their inspection report when they collected the car, they wavered this but now say because she's refusing to pay the excess mileage she now has to pay for the alloys too, any advice on what we do next would be great

[ncf355]

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

Hi,

you just need to stick to your guns

Obviously, in using 'fraud department' they are attempting to intimidate you - this is not fraud in any way, shape or form and they damn well know it!

You are entitled, having paid in excess of 50% of the total sums due under the agreement, to VT without further cost.

[Furryhobnob]

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

Thanks ncf, so even though her contract stated 6000 miles per year,this doesn't come into effect when vt'ing?

[ncf355]

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

They have no grounds whatsoever for court action, tell them Section 100 of the CCA 1974 only requires that you take reasonable care of the vehicle, alloy wheel damage in particular is very likely to be regarded as 'fair wear and tear' - how many cars out there have scratched alloys?

Did they 'waiver' the alloy charge in writing?

If so, they are on extremely dodgy ground attempting to reinstate that charge as a threat to require payment for the mileage

How long had she owned the car when it was returned?

[Furryhobnob]

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

I'm not sure if she had it in writing, in fact I think she has an email with just the charges for the excess mileage with no mention of the damage to the alloys, like I said though it's not on the report/receipt when they collected the car, for some reason her contract was for 37 months and she gave it back after 34-35 months

[Furryhobnob]

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

Also another thing, it states in her contract with Peugeot that she must sign an inspection report when giving the car back, well she was in a meeting at work and she told the guy if there were any issues with the car and he needed a signature to call her and she would come out of her meeting, he didn't do this, instead he got a work colleague to sign the inspection report instead, by doing this has he breached the contract?

[ncf355]

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

OK,
So given that the general average mileage is 12k PA, there is no way they can take this too court as excessive and the car in fact would be considered average mileage for the purposes of sale (be that retail or auction).


So,

I'd say just send them this:



Dear Sir/Madam,

As you are aware, the Consumer Credit Act 1974 allows for me to voluntarily terminate our agreement without further cost, providing the vehicle agreement has had in excess of 50% of the total sums due paid.

I have paid in excess of 50% of the total sums due under this agreement and the vehicle has been returned in a reasonable condition, as again required by the act to effect a VT.

Accordingly, I believe that you are attempting to circumvent the clear legal statute within CCA 1974 via a unlawful term in your agreements.

Due to the above, I hereby state that no further payments will be forthcoming, and any legal action you unwisely decide to take against me will be vigorously defended via the points stated above.

Should you continue attempts to gain funds not legally due, I shall make complaints to the appropriate bodies questioning your fitness to hold a credit license due to your apparent lack of understanding of the act that governs such transactions.

Yours faithfully,

X

[Furryhobnob]

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

Thanks ncf, this is pretty much what I told her to email them apart from reporting them, and they have still called her and said that she's got 10 days to pay

[Furryhobnob]

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

This is a copy and paste of his reply
Claire

Your contract was for 37 months. Because you paid over 50% of the amount payable does not mean to say you have exceeded your payments. The consumer credit act 1974 allows you to terminate your contract at an earlier point without being liable for further rentals or shortfall following the sale of the vehicle. You are still liable for excess mileage charges - End of contract charges.

You read, signed and understood the contract and terms and conditions when purchased the vehicle, regardless of the signature being on a separate page. You are legally liable to the costs of the excess mileage.

Please call me on 0113 201 4440.

Regards,

Wayne

[wales01man]

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

Why are do many Contracts include extra mileage costs if its not legally enforceable are all these companies getting it wrong?