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

[simon.treacher]

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

Hello All

I recently returned my vehicle to Peugeot Financial Services after paying more than 50% of my original purchase figure.

The vehicle was collected by an employee of G3 remarketing.

The initial inspection before he drove the car away was 7 light scratches (very light!!), x3 scratches (2 bumper, 1 one near side passenger door) and x2 minor chips (one bonnet, 1 rear bumper). All scratches, in my opinion, could be polished out. Neither chips had exposed the underlayer of paint.

I thought, ok that's that done with and went on to purchase my next vehicle. However today I've received a Bill for £1691 worth of repairs to the car from RMS Receivables!!!! Damage to the sills neither I nor the inspector had noted, x6 Poor Previous Paint (Respray Required) & a dent with paint damage!!! The car was in good condition and at over 8 years old I'm utterly staggered that they have billed me for the best part of £2000! The car is only worth approx £3000!!!!!

Neither myself nor my wife are in a position to Pay in Full as their letter puts it and if I'm honest I don't think we owe for said repairs under Fair Wear & Tear! The car was well loved and had a good few years left in it!

Sorry to ramble, advice would be great - I'm worried sick!

[Wombats]

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

There is nothing to be worried about. The condition report was signed by you and agreed, they cannot claim further damage - one can only assume the rest was caused by them.

As for the damage you signed for I would argue it is fair wear and tear for a car of that age so you should owe nothing.

Ask for a copy of the invoice for the work (bet they can't produce one!) as usually the cars are taken straight to auction to be sold.

This part of a VT is always a little bit of a sticking point and it is really up to you to stick to your guns and say it was fair wear and tear, so nothing is owed. All they are trying to do is maximise the money they can get from you.

Certainly asking for a copy of the invoice giving a detailed breakdown of the repairs is a good starting point, along with saying that the condition report showed only fair wear and tear and thus you owe nothing, unless they can produce legislation showing otherwise.

[simon.treacher]

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

Ok, thanks Wombat. That certainly makes me feel a bit easier about things, at work now and over the weekend so will be on to it after the Bank Holiday! And stick to my guns......be sure to do that!

[simon.treacher]

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

Quick update, the vehicle has been sold with no repairs done as they are not required to carry out the repairs just claim back the costings for the vehicle being returned in unsatisfactory condition. Any further advice folks? Did get quite heated on the phone when I asked the guy for invoiced repairs carried out and for legislative information as to expected condition of 8 1/2 year old cars - apparently there are industry guidelines only. He was however quite insistent that I owe the money and they are expecting to be paid in full!

[Wombats]

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

What they expect and what they get are two different things. If you believe the vehicle was in a condition commensurate with its age, I'd stick to your guns and pay nothing further. The agreement is terminated. They are trying to claim money off you for work not carried out - is that not fraud?

The new owner will have to pay for the work to be done, so why should you pay too?

They've confirmed there is no legislation and guidelines are just that, guidelines. They are NOT law. This is always the tricky bit of a VT - stick to your guns. They won't like it, but there's not over much they can d about it either.

[Locvez]

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

Hey all,

I am planning on VTing my car and have got a letter ready to post special delivery tomorrow, but the next payment is due on the 12th.

should I make the payment or cancel my DD tomorrow?

thanks,

[Wombats]

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

If you are up to date with payments and have paid over the amount stated on the agreement, then you can cancel the payment and terminate the agreement with effect of September 10th.

If you are under the total you have to pay and are doing a VT, then you might as well make the payment as you'll have less left to pay up to the 'magic figure'.

Make sure you get photos of the car inside and out, with a copy of that days paper to prove the date. DO NOT sign anything, and ensure you get copies of anything they are wanting you to sign. The condition report is always the sticking point, so don't sign anything - rely on photographic evidence with close ups of any damage.

[Locvez]

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

Thanks wombat,

We are over the 50% threshold and I've read most of the thread so will ensure I have all photos required and will sign nothing. Should I refuse to sign the condition report? I thought I had read earlier that this was the only thing to sign

[Wombats]

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

Thanks wombat,

We are over the 50% threshold and I've read most of the thread so will ensure I have all photos required and will sign nothing. Should I refuse to sign the condition report? I thought I had read earlier that this was the only thing to sign

You can sign it if you're happy with it. If you do, make sure you get a copy. If you're unhappy with it, don't sign it.

Given the tight timescale, make sure you send guaranteed next day delivery, and phone your bank to stop the payment, as it may already be in the system. If not, it must be very close to it.

[Guest]

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

Hi all

yes as wobats says, with regards to signing a condition report, as said only if you are absolutely happy with it, also a carbon copy is best. wouldn't want them adding things after the event, if no carbon take a picture of their copy with your phone, they wont like it of course.

[Locvez]

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

Thanks guys, much appreciated!

[ryan85]

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

Hi all

I have sent the suggested letter to Honda Finance stating that I wished to VT and that they should please collect the vehicle as the nearest auction house in nearly 90 miles away (and that they shouldn't charge me as the suggested letter said).

Honda have since called to say the the letter around the VT is fine and that their collection agency will call me to arrange a time for collection. However - they said that there is a 108.00 (inc VAT) charge for collection and that this was explained in the "pre-contract credit information" under the "costs of credit" wording. when I took out the agreement.

Is there anything I can specifically point to as my reason for continuing to dispute the collection charge?

Thanks in advance for any help on this guys!

Ryan

[ryan85]

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

Hi all

I have sent the suggested letter to Honda Finance stating that I wished to VT and that they should please collect the vehicle as the nearest auction house in nearly 90 miles away (and that they shouldn't charge me as the suggested letter said).

Honda have since called to say the the letter around the VT is fine and that their collection agency will call me to arrange a time for collection. However - they said that there is a 108.00 (inc VAT) charge for collection and that this was explained in the "pre-contract credit information" under the "costs of credit" wording. when I took out the agreement.

Is there anything I can specifically point to as my reason for continuing to dispute the collection charge?

Thanks in advance for any help on this guys!

Ryan

[Guest]

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

Hi all

I have sent the suggested letter to Honda Finance stating that I wished to VT and that they should please collect the vehicle as the nearest auction house in nearly 90 miles away (and that they shouldn't charge me as the suggested letter said).

Honda have since called to say the the letter around the VT is fine and that their collection agency will call me to arrange a time for collection. However - they said that there is a 108.00 (inc VAT) charge for collection and that this was explained in the "pre-contract credit information" under the "costs of credit" wording. when I took out the agreement.

Is there anything I can specifically point to as my reason for continuing to dispute the collection charge?

Thanks in advance for any help on this guys!

Ryan

Yes you could point out the pre-contractual information does not mean that you are contractually obliged. (it is not part of the contract, and even if it was section 173 forbids the act to be circumvented by a contractual term). Also that the act states that there should be nothing more to pay other than the requirements of section 100, if they can point to the part of section 100 which states that they are allowed to make such a charge you will pay it, Otherwise, they must either arrange for a a convenient drop off point or collect free of charge.

[tomble22]

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

Hi all,

Am after some advice if possible. We're looking at VT'ing an agreement and would like some advice on excess mileage in particular!

In August 2012 we started a HP agreement for a new Renault Twingo direct from RCI Finance. Our monthly payments are £205 and the agreement was for 4 years. Unfortunately the car is no longer suitable for my working life (I now have to do around 500 business miles a month). The original agreement had a mileage limit of 6000 miles per year, the cars mileage currently stands at 22,350 so approximately 10,500 over the allowance. They indicate a charge of 6p per mile which would equate to £621.

The total amount outstanding on the agreement is £8,082.46 and the 50% figure is £6,545.55 which equals a deficit of £1,536.91. The car is worth £4,200 at trade in and £5,350 private sale (maximum). You can see the issue I have!

We have the cash to pay off the deficit so this isn't really a problem, but I don't particularly want to be hit with the £621 mileage charge on top of this if I can help it. I'm assuming that as the mileage is within reasonable parameters (11,175 per year) this may be arguable?

Thanks in advance.

Tom