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

Thanks to the great advice in this thread we had the finance company collect our car yesterday with very little grief following our strongly worded notice of termination.

After checking the car with a fine tooth comb the only point the auction examiner could pick up on was a missing service. The car was just over 2 years old with 24,000 miles on the clock and had only had one service at 15 months and 15,000 miles. He said it should have had two services; each year and/or 10,000 miles and so the finance company may charge £100.

My thoughts would be that as it had not been 10,000 miles or 1 year since the last service then that is not unreasonable and hence would fulfil the "reasonable care of the goods" part of the CCA but I wonder what the legal beagles think of this situation?

[B3NNL]

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

I have one that I haven't seen similar so am interested in hearing what those in the know think.

I have two Nissan Leafs which I bought on a two year PCP.
The end date is Feb 2017
It was a cracking deal, £1300 deposit and £150pm for two years for each vehicle.
My job is now taking me to the other side of the country, well out of range for the Leaf so it will just be sat on the drive until next year doing nothing.
I called yesterday to enquire about VT and was informed that if I wanted to terminate before Feb, I would need to pay in excess of £6000.
Their reasoning is that the total finance is for £22,000 and they state I have to have paid £11,000 of it before I can VTC.
The GFV of the vehicle is £18,000 I was under the assumption that this would also be taken into account, therefore well over the 50%. The finance company have said that the value of the vehicle is neither here nor there, its the physical amount of money that has been paid i.e. the deposit and monthly repayments. Is this right? If so, I may as well keep paying the £150pm until Feb for it to sit on the drive rather than pay £6k!
Thanks in advance.
Benn

[R0b]

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

Well I would suggest that, they have unreasonably refused to take the vehicle away and you are not required to sign anything so its their choice. Some agents may be under strict instructions not to take it away without a signature.
You call their bluff by saying you'll cancel tax/insurance and liability rests with the lender and see what the agent says.

If they refuse to take it away say that is fine and walk away. You could then write to the lender and say you unreasonably refused to take the vehicle away and so they have 7 days to collect before you cancel the tax/insurance.

OR you could simply sign the report and potentially await the day that they argue you are liable because you signed it. Uphill struggle for you and lots of tennis sending letters back and forth.

It is your choice but as I say to many posters on here, why sign for something which makes you liable when there is no legal requirement to do so?

[JamesH]

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

Right ok. Just to clarify, So if they refuse to take it minus the signature then tell them that I am going to cancel the tax and insurance there and then and also send off the V5C?

[R0b]

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

Take plenty of photos, and remember I would advise against signing the damage report even if there's nothing on it. It will also be assessed at auction and once they have your signature they can use that argue you have agreed for damages. Don't be pressured into signing something as you are not legally obliged to even if they refuse to take it without a signature, just politely tell the agent that is fine but you will cancel the insurance and tax on the same day and send the V5C off to the DVLA - that will likely make them shift it as they wouldn't want to be liable for any charges.

I would not hand the V5C to them get the agent to sign it and you return it as its your responsibility to notify the DVLA of a change of registered keeper.

[JamesH]

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

So I had a call from the company who are coming to inspect the car and also take it away. I have been given a time between 8.30-5.30 on Friday. They have requested the keys, service documents and the registration documents. The car has been valeted and I've had a good look around. There's a few scuffs on the wheels, small scratch on the rear bumber and the 'service vehicle soon' sign on the dash. This is because it's due in 2 weeks. Is there anything I need to do or remember prior to them arriving?

[PaulT87]

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

Cheers rob I have sent an email stating that they are in breach under s99 and I wish to make a formal complaint they have replied saying they have forwarded my email to the management

[R0b]

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

HI Paul,

I would suggest writing to them and starting a formal complaint. As I said ti is your choice whether you decide to cancel or carry on the insurance and tax. If you do carry it on in the meantime you are better off stating to them that you will expect compensation for the monies being paid in respect of the tax and insurance past the date of termination.

[PaulT87]

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

Hi Rob yes I sent that letter over a month and a half ago just received that reply today stating that they won't take it back unless it's at halfway and would like to discuss liability and the account at the time of sending the letter I had made a payment the day before so account wasn't in arrears so they don't really have a leg to stand on

[R0b]

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

HI Paul,

I suggest you write back and explain that you wish to make a formal complaint, or alternatively provide you with a final decision letter. You will then forward your complaint to the Financial Ombudsman. I may also be worth quoting that they are in breach of their statutory duty under s.99 of the Agreement. Sectin 99(1) specifically states that:

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.

Remind me did you send your letter to terminate? The question you now need to make is to whether terminate the Insurance and Tax now and then fight it out in court or keep it going and then try to claim it back through the financial ombudsman or even go to court yourself to recover any costs due to their unreasonable behaviour.

[PaulT87]

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

Hi Rob I have eventually received an email back from my finance company they are refusing to budget and end the agreement stating it has to be at halfway before they will end the agreement where do I stand on this ?

[JamesH]

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

So the letter arrived with them today. Had a look around the car, usual things. Wheel scuffs. Small scratch on back end. Service vehicle soon light is on but it isn't due until next month (hence getting rid of the vehicle now)
Just sit and wait for their response I suppose.
Will keep you posted with how it all goes and no doubt use your knowledge again soon as I cannot imagine it will go as smoothly as I hope!
Thanks for all of the help.

[R0b]

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

Well I pay on the 1st of every month and if I VT officially today would there not be a small amount to pay?
I just don't want to get caught out.

What do you mean by small amount to pay? Do you mean pro rata? There could be possibly but that will amount at best to the number of days used after your previous payment. Equally, I don't think there is any provision stating that they are entitled to any further payments if VT'd halfway through the month, but that your liability is limited to one half of the amount. That to me indicates that whatever time you terminate, as long as you have paid half, then that is your liability.

[JamesH]

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

Well I pay on the 1st of every month and if I VT officially today would there not be a small amount to pay?
I just don't want to get caught out.

[R0b]

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

Well, in terms of when they receive it I would go by royal mail's delivery times. So 1st class is 1-2 working days, 2nd class 2-3 working days etc.

You are only required to notify them that you have terminated so as long as you have retained proof that you did it e.g. a proof of postage receipt then cancel your DD around the delivery times.

What are you asking when they contact you?