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

[HariSeldon]

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

I see others had the fee waived after refusing.

I'm right in thinking I don't complete their form but send a letter advising they will have to collect for free?

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.

Also it mentions that the goods must be fully insured when collecting, is this true?

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.

[Kellster]

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

I've had a look through the thread and have taken on board some excellent advice, many thanks for your work against these vultures. I sent off my letter last Monday giving Black Horse 14 days notice as advised and today received my letter.

Just want to double check a few things, they've asked me to deliver car to an auction house 38 miles away or pay collection. I see others had the fee waived after refusing.

I'm right in thinking I don't complete their form but send a letter advising they will have to collect for free? Also it mentions that the goods must be fully insured when collecting, is this true? The car is currently parked in my mum's drive as I had to cancel insurance after being hit with a healthy quote for insuring two cars. We bought a second hand seven seater after finding out were expecting twins!

[julieh12]

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

I had posted this in the welcome section so thought I'd repost here. Please be kind to me about the service.

Vt with motonovo - advice needed

I have had my 55 plate Honda crv with motonovo since May 2014. Since that time I have lost my job but my partner has helped me cover the finance. We have now just split up and I am only just managing the payments. I would like to vt the car but I haven't had a service over the two years. I have borrowed money so I can get a full 71 point service at halfords on Monday. The car was motd on 30th April with two advisories. The drivers window motor I think has gone. I understand motonovo will probably charge for the non service but I'm also a bit wary of the advisories and window. My brother in law could possibly do the window motor but my insurance needs renewed in 14th and I'm unsure if he can do it before then. There are also a couple of scuffs on the bumper. I was wondering how much motonovo will try and shaft me and if anyone has any other ideas how I can get out of this as I will technically be homeless in four weeks also. Thank you

[stevepen]

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

Just about to VT my car. What do I do with the V5 Registration Document? Do I have to send it with the VT letter and fill it in as sold to the finance company?

[Lynne]

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

Peter, thank you for this. Please may I get some urgent help? I followed this advice to instigate a VT. The finance company have just phoned, they say the optional balloon payment at the end of the pcp is part of the contract and that, despite me being over the half way mark on the actual 3 years, if I VT, they include the four thousand odd in their calculation and that effecting a VT will therefore cost me fifteen hundred odd quid. I argued with them and said that they cannot charge me on a sum I have not borrowed. I told them that my legal advice was that they would try this tac. My first step is to ask on here whether they are correct? Can they include the balloon payment in their 50% calculation and charge me fifteen hundred quid? I hope someone can help. Thanks in advance

[R0b]

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

If you want to keep the plates, that is going to cause some delay so you should have done that before writing to them to VT or you need to notify them and arrange a time to collect once the plates have been changed and the DVLA has updated the details. They will need to send out a new V5C if your private number is on the current one.

Not sure whether you can do that online or over the phone, worth calling the DVLA to find out and how fast the turn around is. Which may be a case of you going on holiday by the time it has been updated and a new V5C sent out.

As for charges, I would expect them to charge you at the very least for any scratches or dents not in accordance with the BVRLA guidelines. If you want to have a look at what those guidelines are see this link where the guide is at the bottom of the page http://www.hitachicapitalvehiclesolu...-wear-and-tear

I would also expect GMAC to charge for the excess mileage too, there will more than likely be a clause within your agreement which says any excess mileage will be charged at a rate of X pence per mile.

If the agent refused to take it away without a signature, then suggest to the agent to contact GMAC first and see what they say. Otherwise before you decide to park it on the road, I would notify GMAC straight away and explain that because the agent was unreasonable and they refused to collect without a signature on GMAC's instructions despite there being no legal obligation to do so, you will not be parking it on the road and absolve yourself of all liability. Give them maybe 72 hours from the date of notification to before you actually park it on the road.

You have to bear in mind if it goes to court (highly unlikely) or if you make a complaint to the Financial Ombudsman, you want to be seen as being as reasonable as you can and show that GMAC is the one who is being unreasonable.

[Markywdog]

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

First thing to note is not to trust what GMAC says. All well and good saying the high mileage isn't going to be charged but they've carefully said this over the phone and not in writing which is something they can deny at a later stage.

You are under no obligation to sign and I would strongly suggest not to sign anything - it causes far too many problems later down the line trust me. Manheim will inspect the car according to BVRLA guidelines which is a standard used for commercial fleet and leasing of vehicles, not second hand vehicles for private consumer use. The agent from Manheim may say that they won't take it away unless you sign the documents but I would then counter this by saying that is fine and explain to them that you will notify the DVLA that GMAC is now the registered keeper and park the vehicle on the road as it is no longer your responsibility and liability will fall with them - I think at that point they will just take it off your hands. Don't be bullied or pressured into signing the documents whatever they say, you will regret it and there is no reason to sign something which makes you liable when you are not obliged to do so.

Take plenty of photographs of the vehicle inside and out so you have the evidence you need in the event of a dispute, which is likely to be something at least.

Expect some kind of charges from GMAC or Shoosmiths once the car has been taken away and/or sold at auction - we can deal with that if or when it happens.

In the meantime if you have not read it already, I suggest you take a skim through this link which should give you an idea on your rights -> http://www.legalbeagles.info/forums/...ry-Termination

Hi Rob

Thanks again - Your points have been noted and I will stand my ground.
What charges from GMAC or Shoosmiths can I expect - what for and how much ?
The car will be on the driveway when its due to be inspected - if I refused to sign the paperwork and he refused to take it even after pointing out that GMAC are now the legal owners of the vehicle do I just park it on the roadway and leave it ?

I have personal plates on the car so need them changed over at same time as declaring it as SORN. The V5C that I have has my personal plates on it so I need to get that sent to DVLA too ???
Which way round should I do it with the reg number, SORN and V5C ?

[R0b]

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

First thing to note is not to trust what GMAC says. All well and good saying the high mileage isn't going to be charged but they've carefully said this over the phone and not in writing which is something they can deny at a later stage.

You are under no obligation to sign and I would strongly suggest not to sign anything - it causes far too many problems later down the line trust me. Manheim will inspect the car according to BVRLA guidelines which is a standard used for commercial fleet and leasing of vehicles, not second hand vehicles for private consumer use. The agent from Manheim may say that they won't take it away unless you sign the documents but I would then counter this by saying that is fine and explain to them that you will notify the DVLA that GMAC is now the registered keeper and park the vehicle on the road as it is no longer your responsibility and liability will fall with them - I think at that point they will just take it off your hands. Don't be bullied or pressured into signing the documents whatever they say, you will regret it and there is no reason to sign something which makes you liable when you are not obliged to do so.

Take plenty of photographs of the vehicle inside and out so you have the evidence you need in the event of a dispute, which is likely to be something at least.

Expect some kind of charges from GMAC or Shoosmiths once the car has been taken away and/or sold at auction - we can deal with that if or when it happens.

In the meantime if you have not read it already, I suggest you take a skim through this link which should give you an idea on your rights -> http://www.legalbeagles.info/forums/...ry-Termination

[Markywdog]

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

Hi Mark,

Apologies for the late response.

In terms of cancelling the DD I would wait a couple of days after sending the letter so that they have time to receive it. Make sure you keep proof of postage. I would suggest keeping the insurance for a minimum of 14 days and taxed too as you need to be seen as reasonable, if you don't then they may refuse to pickup and there will be a lengthy battle no doubt.

As you have given 14 days to collect, I would send them a reminder after 7 and put them on notice that you are on holiday for 2 weeks if it not collected by then, you will cancel the insurance and notify the DVLA that the registered keep is now the finance company ad is now their responsibility. Alternatively you could cancel insurance and SORN it instead and arrange collection after you are back.

Keep receipts of valet and polish if you still have them in case they argue, which given that it is GMAC I would expect so, especially the mileage but we shall not worry about that.

I have seen some threads in which GMAC do not respond until the following month when payment is next due so you need to keep on top of this. Try to keep everything in email/letter as evidence if they act unreasonably - Also expect a possible letter from Shoosmiths as I have also become aware they do this straight away rather than contacting you direct regarding the charges.

Hi Rob

Many thanks for your reply

I contacted GMAC first thing this morning through their online page under "complaints" section saying no one has bother to acknowledge my email ( I've not sent the letter by post only via email) - GMAC called me just now and they are processing the VT. They have cancelled the DD and I've done the same with my bank. I've said Insurance is cancelled and the car secure and I've told them it will be declared as SORN. They say the process now is collection company will contact me (most likely Manheim) to arrange viewing and disposal of the car upon my return from holiday. I mentioned the high mileage but she said that shouldn't be an issue as HP isn't covered by any mileage declaration.
I understand the guy who will come to view the car will assess it and ask me to sign his report - should I sign this ? What is he is picky and notes stone chips and small scratches and tries to bill me for them ( Fair Wear and Tear especially after 67,000 miles )

At the moment it sounds like it should go through OK....

Is there anything I should now be prepared for ?

[R0b]

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

Hello and Good Morning.

I have just paid the 30th payment of my 60month HP. I have drafted the letter from page 1 and I am just about to email it to the Finance Company but I have some questions I wish to have answered first :
1. Upon writing the letter and emailing am I legally allowed to cancel the Direct Debit with my Bank ?
2. Can I also cancel the insurance for the vehicle and declare it as SORN ?
3. I've given them 14 days to respond to the VT Letter and to arrange collection but from 15th day I'm on holiday for 2 weeks so they wont be able to collect until I return (Could this be a problem?)
4. Could I get the car transported to the Dealership where I purchased the car from and make them visually inspect it and take it until the Finance Company pick it up (from them) ?

I have had the car professionally valeted (inc 2 stage machine polish) but I think they my fight back as the car has just over 67,000 miles on the ODM in 30months

I have a Vauxhall Astra and the HP was done through GMAC.

Many thanks in advance, Mark

Hi Mark,

Apologies for the late response.

In terms of cancelling the DD I would wait a couple of days after sending the letter so that they have time to receive it. Make sure you keep proof of postage. I would suggest keeping the insurance for a minimum of 14 days and taxed too as you need to be seen as reasonable, if you don't then they may refuse to pickup and there will be a lengthy battle no doubt.

As you have given 14 days to collect, I would send them a reminder after 7 and put them on notice that you are on holiday for 2 weeks if it not collected by then, you will cancel the insurance and notify the DVLA that the registered keep is now the finance company ad is now their responsibility. Alternatively you could cancel insurance and SORN it instead and arrange collection after you are back.

Keep receipts of valet and polish if you still have them in case they argue, which given that it is GMAC I would expect so, especially the mileage but we shall not worry about that.

I have seen some threads in which GMAC do not respond until the following month when payment is next due so you need to keep on top of this. Try to keep everything in email/letter as evidence if they act unreasonably - Also expect a possible letter from Shoosmiths as I have also become aware they do this straight away rather than contacting you direct regarding the charges.

[Markywdog]

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

Hello and Good Morning.

I have just paid the 30th payment of my 60month HP. I have drafted the letter from page 1 and I am just about to email it to the Finance Company but I have some questions I wish to have answered first :
1. Upon writing the letter and emailing am I legally allowed to cancel the Direct Debit with my Bank ?
2. Can I also cancel the insurance for the vehicle and declare it as SORN ?
3. I've given them 14 days to respond to the VT Letter and to arrange collection but from 15th day I'm on holiday for 2 weeks so they wont be able to collect until I return (Could this be a problem?)
4. Could I get the car transported to the Dealership where I purchased the car from and make them visually inspect it and take it until the Finance Company pick it up (from them) ?

I have had the car professionally valeted (inc 2 stage machine polish) but I think they my fight back as the car has just over 67,000 miles on the ODM in 30months

I have a Vauxhall Astra and the HP was done through GMAC.

Many thanks in advance, Mark

[bangerdemon]

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

They need to prove at the time that the damage to the vehicle was not there when you purchased it which I am guessing that they cant unless they carried out an initial inspection prior to you purchasing it? Otherwise you can simply maintain the damage was there already at the time of purchase and it is up to them to prove that it was not. s.100 is not a free pass to claim damages beyond reasonable. The car is 10 years old and is expected to have some damage to it, but as long as you have maintained it whilst in your possession it is up to them to provide the evidence - only way they can enforce that amount is through a court order as it is nothing more than an alleged debt, until a court agrees with them it then becomes a recognised debt hence why they cannot report you to the credit reference agencies because it is not a recognised debt unlike your monthly payments.


Satisfactory condition is a term used by them but is not the term used by the consumer credit act which is reasonable condition. They are not judge, jury and executioner on whether or not they are owed damages for repairs.


The car was sold at auction wasn't it? So why are they now claiming it must be minimal refurbishment for retail sale?

You want proof that the sums were actually paid for, if they did not pay for them then they cannot claim to be owed anything as they have not mitigated their loss. The second point to note is that given the age/mileage of the car, is the vehicle likely to fetch more at auction if it did have the repairs done? not likely.

All smoke and mirrors I believe, less the collection charges you allegedly owe £150 for the repairs to the vehicle. I know where I would tell them where to go and see them in court but it is of course up to you. If they would want any remote chance of winning this then they would need to hire an expensive lawyer/barrister but for the sake of £150, does not make commercial sense. They can instruct debt collectors all they want you could just ignore them because it is not a recognised debt until it goes to court they get judgment. Round and round in circles really.

Your alternative is to complain to the Financial Ombudsman, ask them for a final decision and then make a complaint, they are hit and miss but they might be a bit more reasonable than the lender. You are not obliged to accept the Ombudsman's decision but if you do then it is binding on both parties. If you refuse to accept they still need to take you to court.

Hi Rob,

After receiving a phone call earlier in the week, where I continued to dispute owing any money to the finance company, even after being told it was negotiable, I have today received the following letter from them

"Despite our numerous attempts to remedy the arrears on the above numbered account, I am disappointed that we have not succeeded in resolving this matter amicably.

Due to a lack of co-operation on your part, we may have little alternative than to recover monies due to us via County Court Proceedings.

Unless we hear from you in the next seven days it is likely that we will instruct a claim against you in the County Court to obtain Judgement for the full value of debt outstanding. Your outstanding balance is £230.00, although additional charges for legal costs may also be applied.

If at this point you still fail to make payments under the Judgement Order, we may also apply to the Court for an Attachment of Earnings Order. This may result in the deduction of regular amounts directly from your wage or salary until the judgement debt has been satisfied.

If there is a genuine financial problem we will endeavour to assist you, however it is essential you contact this office on the number below so that we may prevent any unnecessary legal action and additional charges.

We look forward to your urgent response."

I still have no intention of paying, because I still believe the damage is fair wear and tear on a ten year old car, but was wondering if it is worth me considering a counterclaim if I am taken to court.

The reason I ask is because the day after I collected the car from the dealer, it turned out that it had a faulty gearbox. The finance company flatly refused me taking the car back to the dealer for a refund, saying that I had to give them a chance to fix the car. Well, in the first two months of owning the car, it was at the dealer's mechanic for a month. Then, after about 10 months of ownership, I had to pay almost £1600 to get the gearbox rebuilt, and the car was off the road for another month, so was wondering if it would be worth trying to counterclaim for the cost of the rebuild, two months payments to the finance company, two months tax and two months insurance seeing as I had no use of the car for the two months.

Your advice would be greatly appreciated.

Alan

[R0b]

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

Well no, they may mark your report as saying you VT'd but the outstanding balance will become a debt, which they can enforce by going to court and obtaining a judgment against you, resulting in a CCJ on your credit report for the next 6 years. It means you will find it difficult to obtain credit such as a mortgage.

[conorg1991]

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

So the 50% I still owe them, would that just be put against my name and on my credit score?
I purchased the car from arnold clark and tried returning it on many occasions, but was not successful.

Thanks,
C

You can terminate the agreement at any time under s.99 of the CCA but you will still owe them 50% of the total amount payable so they are correct in that sense. If you have had problems with it since day one, what was the purpose of keeping the car, shouldn't you have thought about returning it?

[R0b]

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

You can terminate the agreement at any time under s.99 of the CCA but you will still owe them 50% of the total amount payable so they are correct in that sense. If you have had problems with it since day one, what was the purpose of keeping the car, shouldn't you have thought about returning it?