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

[MissFM]

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

Hi all, so glad i have found this forum.
Over the past year our finances have took a massive hit due to my wife having breast cancer, she was obviously off work for her operation and treatment which meant she only had half pay for 6 months, then SSP, for the remainder.
This had a huge impact on our finances and we fell behind with some monthly payments, one of them being our car which was on a 5 year agreement with a national company, the agreement finishes next February 2015, so is way over this halfway mark mentioned on other posts.
However due to what we are going through, the contract has now been passed over to a car recovery firm who are insisting we make 6 payments of a much higher figure than the contracted £200 per month, they are looking for around £500 which is ludicrous considering the place we are in at the moment.
We have enough stress and worry to cope with in life at the moment without having sleepless nights worrying about this, so my question is, can I still contact my original borrower and state that I want VT on my car ?, it would solve a lot for us if I could, if I was aware of this get out clause a wee while back I would have used it, but under stress and moods of depression I tended to ignore any correspondence due to our circumstances. Thanks for bearing with long winded post, but at our wits end, wish I had seen this forum earlier.

Mr.Peterbard

VIP Working Groups Member



Join DateFeb 2012Posts565Thanks (Given)54Thanks (Received)162

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

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

The intention of this piece is to clarify the situation regarding VT’s. There is much misinformation given from various sources, some of it well-meaning and some perpetuated by dealers who fully know that the provisions give the debtor an effective tool to mitigate losses on an unwise purchase.

It is true to say that this particular piece of legislation survived the recent consumer credit reforms by the skin of its teeth, there were many lobbying for it to be rescinded.

First some basic facts:

1) Contrary to popular belief, the debtor is fully entitled to terminate the agreement at any time. It does not matter if he is in arrears or if he has paid half of the total amount on the contract.

2) The debtor does not have to fill in a form provided by the creditor in order to voluntary terminate the vehicle. It is quite acceptable for the debtor to just write a letter giving the creditor reasonable notice. (We will include some template letters later in the thread for you to use.)

3) The creditor cannot charge a fee of any kind for this; he is compelled to provide this service by statute.

4) You do not have to make any special arrangement to return the car; they must arrange either a local drop off point, or free collection.

5) If no arrangements can be made for return of the vehicle, it must be made clear that a charge will be made against them to cover storage.

6) The vehicle does not have to be in pristine condition when you return it. They cannot refuse the Termntation whatever the condition. All that is required by statute is that the goods were” reasonably well” looked after.

7) It is true that they are entitled to charge for any work needed to return the vehicle to a reasonable standard. To this end they may ask you to witness a condition report on termination.
You do not have to attend anything although it may be in your interests to do so. Sometimes these are carried out by an independent agency such as the RAC other times it is one of the dealer’s employees. At the end of the inspection they will ask you to sign the report. Do not sign unless you totally agree with what is on it and it is properly particularised. “A slight indentation on rear off side”, could land you with a bill for a new wing.

8) To repeat you do not have to sign anything, they are compelled by statute to accept the car back the agreement is terminated.

Peter

Hi Highlander,

Firstly I'm so sorry for your situation and hope that your wife is improving.

I've taken the liberty of copying the first post from this thread in case it's helpful to you and I'm confident that a more knowledgeable beagle will come by to give you specific advice soon.

Don't panic!

[Guest]

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

HI Highlander.
Has the creditor issued you with a default notice and terminated your hire purchase agreement. If he has not you have the unequivocal right to voluntary terminate and should send the letter at the start of this thread straight away and get the process going. If you wait and let them terminate the agreement you lose the opportunity.

You should e-,mail the letter to them also, when they get back to you with the claim that you have to pay first anyway. (which they undoubtedly will) come back on here and we will tell you what to say. As MsFM says don't worry, it is nothing that has not been done on here many many times before. It is yor legal right to VT and they have no choice in the end but to comply.

[Guest]

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

Incidentally, they have not taken the car have they without your consent ? If so they have made a grave error.
Let me know if they have , but in the morning

[highlander]

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

Hi Folks, thanks for the prompt replies, my position at the moment is this : I rceived a letter from a car recovery firm saying they were working on behalf of the creditor and are now looking for large amounts for monthly payments to cover the arrears, money we don't have.
Can I still contact the creditor and state I want to apply VT, ?

[Guest]

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

Hi Folks, thanks for the prompt replies, my position at the moment is this : I rceived a letter from a car recovery firm saying they were working on behalf of the creditor and are now looking for large amounts for monthly payments to cover the arrears, money we don't have.
Can I still contact the creditor and state I want to apply VT, ?

Did you see my previous post ?

[highlander]

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

Sorry, missed that part, so am I now in a position where I cannot request this ?.
Also, I would like to do the same with my contract for my touring caravan, it has fell behind 4 payments and I am just over halfway through contract. If I can, do I phone them first to see if they can come to some payment plan I can afford, and if not tell them I am going to request VT, or do I not mention VT during phone call and proceed with sending in letter, thanks in advance.

[Guest]

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

Have you recieved a default notice under section 87 of the consumer credit act warning you that if you do not pay the arrears within 14 days the agreement will be terminated.

[highlander]

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

Hi, yes unfortunately we have, I am thinking of doing this with my caravan but would like to see if they can come to some payment plan first.
Question is, while I'm phoning to find out, do I mention about VT if the payments are not suitable, or is it best just to send in the letter ?.

[Guest]

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

You can mention that you are thinking of doing a VT, they will undoubtedly question the condition of the goods, but as long as it is either a HP or conditional sale agreement you can VT.

[highlander]

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

Thanks, spoke with them today and they were very understanding on my circumstances, have to call back to see what they can do to help.
My biggest worry is my car agreement which is now in the hands of a recovery company who want me to pay off all the arrears and the rest of my agreement in a 6 month period, which would mean monthly payments of over £500 ( in place of the normal £200).
Do I have any bargaining rights with them to arrange something which is feasable, they don't come across to me as being very sympathetic in carrying out their business , once again many thanks for the help in here .

[Guest]

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

Thanks, spoke with them today and they were very understanding on my circumstances, have to call back to see what they can do to help.
My biggest worry is my car agreement which is now in the hands of a recovery company who want me to pay off all the arrears and the rest of my agreement in a 6 month period, which would mean monthly payments of over £500 ( in place of the normal £200).
Do I have any bargaining rights with them to arrange something which is feasable, they don't come across to me as being very sympathetic in carrying out their business , once again many thanks for the help in here .

Sure, it depends on what you want to do with the vehicle rely. If the take it back under a voluntary surrender, they will auction it and knock it off the total balance, they should also give early settlement discount if the term of the agreement has not expired, then chase you for the rest. You can then offer them a repayment plan based on an income and expenditure breakdown, if they do not accept it you can offer the same thing to the court, odds are that they will and the creditor will know this.

Otherwise if they pursue you through he court you could apply for a time order, which is a formal request for the court to instruct the creditor to give you more time to pay, perhaps if you mentioned that you were exploring this option it may make them more amenable.

[Furryhobnob]

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

My partner received something from rms again, are they still trying it on? And should I tell her her to ignore it?

End of Contract Charges



We write in connection with the above agreement and our clients claim for Damage and Excess Mileage relating to vehicle registration BK11YRC, and note that despite repeated requests for payment the sum of £1,498.57 still remains outstanding.



In order to reach an early commercial settlement our client Peugeot Financial Services agree to negotiate and settle the debt under the following terms.



Peugeot Financial Services and you agree that the current outstanding sum is £1,498.57.



Our client Peugeot Financial Services agrees to accept less than the full amount of the debt, provided that you make payment on or before 30/06/2014. Peugeot Financial Services agreed to accept the sum of £750.00, in Full and Final settlement of this Claim.



Failure to comply with this request will result in our client immediately demanding the payment of the original amount and reserve the right to issue legal proceedings against you for that amount should payment not be forthcoming.



We therefore politely request that you call our office on 0113 2014440 to make payment by debit or credit card. Alternatively please pay into the following bank account on or before the date specified above.



RMS Receivables:

Sort Code: 20-11-81

Account Number: 13500314

(Our reference must be quoted with all payments)



We look forward to receiving your payment within the next few days. Please note that all further communications in respect of this matter should be addressed to us and quote the above reference.



Yours faithfully

RMS SIGNATURE

RMS Receivables

[Guest]

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

You could ignore or send.


Dear sir Thank you for you letter dated.

I must remind you that the agreement mentioned was voluntarily terminated, and under the statute there were no further sums due.

I must warn you that demanding payments of moneys not due is contrary to OFT guidelines and may constitute an offense, and any further harassment will result you being reported to the relevant authorities.

[FluffySheep]

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

Whilst I'm aware that this sub-forum is focused on car finance, it was this thread that highlights what S99 offered. But my question(s) refer to a static caravan...

http://www.legalbeagles.info/forums/...tatic-Caravans

I don't want to derail the sound advice being provided but a small bump feels in order, given that the sub-forum I used is a lot less active. MTIA

[Wombats]

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

Replied on original thread:

http://www.legalbeagles.info/forums/...tatic-Caravans