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

[conorg1991]

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

Hi all, I'm new to this forum
I have been searching endlessly for a solution to hand my car back to the finance company under the CCA 1974. I have paid 1/3 of the car off to date and would love to get rid of it as I've nothing but problems since the day I purchased it.

I emailed citreon finance and they replied saying I have to pay 50% of Total Amount Payable if I wanted to hand it back. I was just wondering if anyone knew if this was true or if there was anything under the CCA that would mean I could hand it back if I've paid over 1/3. I'd love to get rid ASAP.

Thanks,
C

[R0b]

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

Hi Jellid, see this link http://www.legalbeagles.info/forums/...ry-Termination

[Jellid]

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

Hi I'm new to the thread and would greatly appreciate some help.

I called Peugeot to request a VT and they wrote to me saying that I need to pay £724.70 (451.29) VT liability and (273.41) early settlement of Gap Insurance.

Which I should pay into their account or send a cheque and sign a form to send back to them confirming I want the VT.

I don't know how to respond as the form they want me to sign has "I may have to pay an additional sim in respect of any damage to the ge hole or any excess mileage charge. I will be contacted separately by your agent. RMS Recievables regarding this."

The only damage to my car is a slight dent on the front passenger side door where someone has parked too close to and opened the door which hit my car and also some scratches to the alloys.

The car is just over 2 yrs old and the mileage 8005

As I don't want to sign anything they have sent how do I respond?

[R0b]

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

Don't suppose they told you over the phone it will affect your credit rating as opposed to email? Either way they are wrong on that point so you can VT at any time, just be aware they may charge you excess mileage and charges for unreasonable damage if any. All of this is explained in the guide I wrote so may be worth a read before you VT so you are aware of any underhand tactics they may use.

[gordonmw]

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

Hi Gordon, what is the finance company called? No your credit score will not be affected for the next 6 years you are legally entitled to terminate and giving misleading information about the law is a claim in itself. So long as you have paid 50% you do not need to pay anymore. If you want more information click on the link below in my signature regarding voluntary termination

Hi Rob,

It is Mercedes Benz Finance. I took out the agreement on a 36 month plan in October 2013 for a new car. I've paid all installments on time and only have 6 payments left to make. As I said, I am now working away for the next 6 months (Monday-Friday) so the car will be just sat on my drive for most of the week and not worth me paying £400 a month for.

[R0b]

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

Hi Gordon, what is the finance company called? No your credit score will not be affected for the next 6 years you are legally entitled to terminate and giving misleading information about the law is a claim in itself. So long as you have paid 50% you do not need to pay anymore. If you want more information click on the link below in my signature regarding voluntary termination

[gordonmw]

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

I have a HP contract due to terminate October 25 2016. As a contractor I now find myself working away from home between now and the end of October 2016. I have contacted the finance company and been advised that if I voluntary terminate now I will have a mark on my credit score for the next 6 years and it could affect any future credit offered. Is this true please? I have paid 30 monthly payments on time and don't see why I should be penalised in such a way?

[R0b]

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.

Should the goods not be in satisfactory condition when returned to us you will be required to pay to us the amount required to return the goods to a satisfactory condition.

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.

II. Must require minimal refurbishment to be ready for retail resale

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.

[bangerdemon]

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

Well, This is the reply I got from them!!! (including a vehicle condition report which I have no idea as to how to upload to the forum)

"In reference to your email regarding your voluntary termination the points of which have been noted.

We are aware the vehicle is a 10 year old and this is taken into account when the inspection is carried out. However the refurbishment required to the vehicle are not commensurate with the age of the vehicle

The original voluntary termination letter which you received states, “Should the goods not be in satisfactory condition when returned to us you will be required to pay to us the amount required to return the goods to a satisfactory condition. These points were also explained in a recorded call before the vehicle was handed back and we also advised to obtain an independent report from a VAT registered garage.

Our definition of good repair and condition is that the vehicle must:
I. Have a current MOT certificate and require little or no work for the issue of a
new certificate
II. Must require minimal refurbishment to be ready for retail resale
III. Be free from mechanical or body damage, and in a condition commensurate
with its age / mileage
IV. Be in its original paintwork, trim and specification (as at the time of purchase)

As you have raised section 99 of the Consumer Credit Act please also refer to section 100 of the consumer credit act (4) If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have the effect accordingly.


Please refer to section 100 of the consumer credit act (4) If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have the effect accordingly.

Should you require any further assistance please contact directly on "

How should I proceed?

Alan

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http://i1060.photobucket.com/albums/...pspdmd2yet.jpg

[bangerdemon]

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

Hello, something below should suffice

Dear Sir/Madam,

The car was returned in a reasonable condition and as I am sure you can appreciate, the vehicle was circa 10 years old and was therefore returned to you in a reasonable condition given its age. Damage to the vehicle was already sustained prior to entering into the agreement and I must remind you that the onus is on you to prove that the vehicle was in an unreasonable condition. If you believe otherwise, please provide me with an independent expert report confirming that the vehicle was not in a reasonable condition, with full explanations as to why, otherwise, you are not entitled to such sums. The collection fees charges you purport are owed, cannot be claimed under the Consumer Credit Act. Might I suggest you read the relevant sections of the Act in particular, ss.99,100, 173 and 189.

Furthermore, the sums you allege do not fall within the scope of being reported to credit reference agencies and may only be recovered by an order of the court. The sums you are seeking did not form part of the monthly payments under the agreement and so I put you on notice that any attempt to report such alleged debt to credit reference agencies you will then be in breach of Principle 4 of the Data Protection Act 1998. Such breaches I might add, are actionable by way of damages.

Yours faithfully,

[NAME]

Thanks Rob, have sent it by email, and will see what response I get.

[R0b]

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

Hello, something below should suffice

Dear Sir/Madam,

The car was returned in a reasonable condition and as I am sure you can appreciate, the vehicle was circa 10 years old and was therefore returned to you in a reasonable condition given its age. Damage to the vehicle was already sustained prior to entering into the agreement and I must remind you that the onus is on you to prove that the vehicle was in an unreasonable condition. If you believe otherwise, please provide me with an independent expert report confirming that the vehicle was not in a reasonable condition, with full explanations as to why, otherwise, you are not entitled to such sums. The collection fees charges you purport are owed, cannot be claimed under the Consumer Credit Act. Might I suggest you read the relevant sections of the Act in particular, ss.99,100, 173 and 189.

Furthermore, the sums you allege do not fall within the scope of being reported to credit reference agencies and may only be recovered by an order of the court. The sums you are seeking did not form part of the monthly payments under the agreement and so I put you on notice that any attempt to report such alleged debt to credit reference agencies you will then be in breach of Principle 4 of the Data Protection Act 1998. Such breaches I might add, are actionable by way of damages.

Yours faithfully,

[NAME]

[bangerdemon]

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

Hi.

My car was collected on 31st March as arranged with the finance company when I VT'd it.

It was collected by Newark Motor Auctions, after I refused to deliver the car to either Bristol or Bath (I live in Plymouth - at least two hours drive from either). I had already been in contact with the finance company to refuse paying the £80 collection fee they demanded for collecting the car, and they wouldn't let me deliver it to anywhere within a reasonable distance of where I live.

The car was subsequently sold on 19th April by the aforementioned Newark Motor Auctions.

Today, I received a letter from the finance company, dated 21st April, which states I owe them "£150 for the cost of repairs to bring the vehicle to a satisfactory standard under section 100 (4) of the Consumer Credit Act 1974". I feel that any damage was either already there, or should be classed as fair wear and tear (the car was 10 years old when it was collected).

They have also added the £80 collection fee to what they say I owe, making a total of £230.

At the bottom of the letter, they state "Please be aware your payment information of the above sums will be reported to Credit Reference Agencies. If you do not make your payments on time this may affect your credit rating."

Any advice on how I should proceed would be greatly appreciated.

[JP77]

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

B3NNL - this is what I have always understood and I believe the very early posts on this thread confirms this i.e. you can VT at any time, but you would need to pay 50% of the total amount owed.

[JP77]

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

In addition to my last thread if it's helpful to anyone - some years ago I VT'd a PCP deal without fully understanding my rights.

On that occasion they came to our home to inspect the car at the guy identified a number of bumps and scrapes that were barely visible. I didn't even know most were there as they were so hard to see. I did sign his paperwork not knowing any better, but I signed to say I did not agree with their assessment. A week or so later I received confirmation in the post from the finance company (BMW Finance) that the agreement had been terminated. At the time I remember thinking that they had just been trying to get more money out of us.

[JP77]

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

We are almost at the overall 50% mark of the total amount owed under our HP contract. However, we have a separate issue in that our car is currently off-road and in need of some major repairs. The dealership have already carried out one 'repair' to the car but insist it requires yet more work which we have not yet agreed to.

We have exhausted all avenues which has included a complaint to the finance company. They rejected our complaint stating that the faults are unlikely to have been present at the time of purchase. This is despite their admission that they were unable to inspect the original defective parts as they had already been returned to the manufacturer. They also advised that their inspection of the vehicle was limited. Given the age and mileage on the car we still believe that we should not have to pay for the repairs as the parts which have failed should not fail under normal driving conditions (so we've been advised from different sources).

So, the condition of the bodywork and interior of the car is fine commensurate with its age; what I'd like to understand is the likelihood of being able to VT whilst it still requires engine work. The dealership and finance company have not been able to provide a cause for the breakdown so I do not see why they could say that we have not taken "reasonable care of the goods"

Any input would be appreciated. Thanks