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

[xgsjx]

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

I found this forum after getting a nice letter from Wayne at RMS receivables asking for over £1k for damage. What an excellent thread.

I did a VT with Citroen Finance (which was easy enough) & a chap came and inspected it & collected on the 27th of June.
The Vehicle Inspection Report that I signed says there was 6 light scratches to the bodywork, none which had broken the paint. It was a clear sunny day & the vehicle had been washed so he could check it properly.

I got a letter on Monday saying there are 7 scratches & also scratch damage to 2 wheels.
I phoned & got Wayne who said if I paid it there & then, he'd knock the cost of the wheels off & I'd only have to pay £740, if not then I'd need to pay him £1068. Which he said I could spread over 3 instalments. He was claiming that there was a lot of damage to the car & that the scratches were down to the metal.

I took a walkaround video of the car on my phone just before the chap came to collect it & it shows no damage on the car as they describe or show in their supplied photos. 5 of these scratches apparently would cost £620 to fix!

The car was sold in auction yesterday & there was no repairs done to the vehicle.

Do they have a case?

[Wombats]

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

Not if things are as you describe them. The Act states along the lines of reasonable wear and tear which pretty much covers what you describe. How old is the vehicle? If only 3 weeks old they may have a case, if 6 years old less so. It comes down to the fair wear and tear which is always a sticking point and something which has to be agreed between the two parties. Personally, if things are as you describe them and the vehicle is used, then I wouldn't pay them one penny.

[Guest]

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

As Wombats says surface scratches are usually to be expected on vehicles over a year or so old, i have VTd several cars myself and seen many others over the years and almost without exception the creditor sends on of these letters, you would be surprised how many people just pay up, I would tell them that it is fair wear and tear, tell them that you have photographic proof of the actual condition of the car and see what happens.

[xgsjx]

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

Cheers guys.

The car is 5 years old (09 plate). It was 2 years old when I got it. 3 weeks prior to the guy coming to collect it, I said that there was some light scratches on the bumper & wing mirror that I was going to see if could polish out & he said that I wouldn't need to unless the paint was broken, which it wasn't, so I left it.
He marked them as light scratches on the report & other than the light mark on the rear bumper & wing mirror, you can't see them on the video (even when played back on the TV).

I think I'll send him a letter to this effect, letting him know that the report said that it was light scratches & that I have video evidence of this.

[Guest]

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

Cheers guys.

The car is 5 years old (09 plate). It was 2 years old when I got it. 3 weeks prior to the guy coming to collect it, I said that there was some light scratches on the bumper & wing mirror that I was going to see if could polish out & he said that I wouldn't need to unless the paint was broken, which it wasn't, so I left it.
He marked them as light scratches on the report & other than the light mark on the rear bumper & wing mirror, you can't see them on the video (even when played back on the TV).

I think I'll send him a letter to this effect, letting him know that the report said that it was light scratches & that I have video evidence of this.

And of course here would have been some marks on the car when you got it if it was a couple of years old, you cannot be held responsible for them

[xgsjx]

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

And of course here would have been some marks on the car when you got it if it was a couple of years old, you cannot be held responsible for them

That's a good & valid point. I've put that in the letter along with details of the inspection report carried out on the day & also of the video evidence.

[Henry19]

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

Hello. What a great site!

I have only 4 months ago taken a new van on hire purchase but only last week I was under cut on my biggest contract and I have lost a considerable amount of income.
I am worried I won't be able to keep up with the repayments £345 per month and I would like to know what I would be required to pay to do a VT?

would I have to pay 50% of the hire purchase cost still? The van is through VW.

It it really came out of the blue losing the job we have been doing for 4 years to a new starter company and now I have to really tighten the purse strings and a brand new van the last thing I can afford to keep paying now.

All advice gratefully welcomed

kind regards

Henry

[Guest]

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

HI Henry
probably best reading the first post on this thread and then getting back with any queries.

[Henry19]

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

HI Henry
probably best reading the first post on this thread and then getting back with any queries.

Thanks,

ok so I can quit it at anytime but I am responsible to pay upto 50% to the creditor but that can be via a reduced payment?

Sorry if I'm being dumb.

Henry

[Guest]

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

HI Henry

No your not being dumb a All

Vt is generally the bet option but not always it depends o the agreement and the value of the vehicle. If you VT you only have to pay up to 50% of the total ageement price, this does not have to be pai until after the car has gone back(although they will undoubtedly tell you otherwise).

Alternatively you can voluntarily surrender the vehicle, if you do this you have to pay the full amount outstanding on the agreement less some early settlement discount and less the value of the car( or whatever it brings in auction usually.
If you put up your details on here i can calculate the different sums owing for you if you like.

[Henry19]

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

The total amount is for £24,882.04

I paid a deposit of £444 and my first payment was for £1020 and I have since been paying £340 per month for the last 4 months.

[Henry19]

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

Any one?

[JENNAB123]

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

Hi
I have VT'd my car with Peugot, after much debate of them wanting me to sign the VT documents they finally gave in and contacted the people to collect the car.
The day my car got collected they did as inspection to which i was happy with and signed.
Since then, RMS receivables have sent me an invoice for damages that were not on my inspection report and also for excess mileage. I phoned them instantly stating the damages were not on my inspection report and they said they would write off the damages.

I told them also about the excess milage, saying my contract stateds the 'once 50% of the balance as been paid, and reasonable care as ben taken of the goods, then there is nothing further pay', they argued saying it was an end of contract bill.

Can they charge this? my mileage allowance in my contract is 6000 per year although I thought it was 12000 as that is what i wanted, but they put it in the small print.... silly me.

Jenna

[mwilliams]

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

Hi,

I've been reading up on here but registered today after Manheim auctions refused to take our car. It was for a rip in the tyre which made it unroadworthy so thats fair enough, we hadn't noticed this rip.
So the car has had a new tyre put on, and we also have to pay the fine for them not being able to take the car.

My question is, what is regarded as fair wear and tear? they also highlighted a small dint on the rear passenger door which they said they would charge for, how enforcable is this charge? can i refuse to pay it? as we hadnt even noticed the dint till the inspection guy pointed it out.

We now have to wait another week for them to collect the car again.
we only have tax till the end of the month and they said it is a £250 charge to take the car without tax? surely this isnt right?
Its a 2008 Nissan Qashqai, 75000 miles, full service history and MOT till september.

Pics of the dint






Thanks for any help

[nikista1]

Re: 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 Peter,

I am after me advice and you seem very knowledgeable in this area. I have a HP agreement with a company, whereby I am one month in arrears with at present. Total being around £375. I sent the VT letter detailed below, as its my understanding from reading these threads that I can do this at any point and is my right, arrears or not. I have only had the car since March this year but due to my business now going under I can no longer afford to be making these payments.

I run the finance company, to see firstly if received the email last night. The lady was very cagey and skirted round the issue, but just kept saying I have to pay the arrears before I can VT. I advised I will be taking advice on this matter before I discussed any further with her.

Could you please advise me on the best route to proceed with this?

Thanks

Nikista1