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

[svkl]

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

thanks, have just replied to them quoting 14 days, will let you know what happens next, thanks again

[R0b]

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

* Which you will pay within the next 14 days, ask for them to confirm the amount outstanding to bring the total amount up to the 50% mark.

[svkl]

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

i will reply back telling them the agreement has been terminated from today but with the understating that there will be further liability for the outstanding balance to take it to 50%

[R0b]

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

If you terminate the agreement earlier than the 50% mark, you are liable for the remaining amount which brings it up to that mark. If you pay now or have already paid up to the 50% mark then there is nothing further to pay and you are not liable, subject to the car being in a reasonable condition which any damages can only be claimed by an order of the court.

[svkl]

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

thanks, do you think they are trying this because they are saying We cannot complete the voluntary termination with no further liability until its brought over a half . So from your reply i will have further liability for outstanding balance to take it to 50%, meaning it does not need to be paid upfront, i can still VT with the further liability,they are saying i should pay the balance up front so i do not have any further liability?

[R0b]

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

Hi Rob, have just received this reply from them, does this mean i have to pay the balance to get to 50% before i can VT, i thought i should be given a reasonable time scale to pay eg 2-4 weeks

Are you calling to pay the remaining amount over the phone to bring you over a half paid?

We cannot complete the voluntary termination with no further liability until its brought over a half.

Also as stated previously – your car is subject to inspection and you will be advised of this at the time of the collection if you are liable for anything regarding damage.

I've had to double check the law on this and I think i've said something different in a similar situation but after reading it a few times it is quite clear that you you have a right to terminate the agreement at any time. Here is the relevant part:

(1) 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.

(2)

(2) Termination of an agreement under subsection (1) does not affect any liability under the agreement which has accrued before the termination.

Therefore, this says you have the right to terminate the agreement anytime without reason before the final payment has been made. There is no condition attached which says that before the agreement is terminated then you must bring the account up to the half way point otherwise that would defeat the purpose of having this section in the first place.

s.100 of the act says that you are liable for to pay up to one half of the amount and any sums accrued before the termination of the agreement. It does not state that you must pay one half before the agreement can be terminated.

So from their email they are basically preventing termination of the agreement which is a statutory right given to the consumer and they are in breach. Yes you are liable for any amount to make up the to the halfway stage does not prevent the agreement from being terminated. Regardless of what they think I would tell them that the agreement has been terminated and if they believe it has not please specify the particular section that states before the agreement can be terminated, the debtor must pay one half of the amount (there is none by the way just says liable which is not the same thing). It would be reasonable to make any outstanding payment within 14 days of the agreement being terminated.

If you haven't done so already you could tell them you have given notice and expect the car to be collected within 14 days. Failure to do so you will return the V5C and inform the DVLA that they are now the registered keeper and liability rests with them along with cancelling the tax and insurance.

I would also send them a reminder 7 days later also so that there is no argument that they did not receive any notice.

If you need help with it let me know

[svkl]

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

Hi Rob, have just received this reply from them, does this mean i have to pay the balance to get to 50% before i can VT, i thought i should be given a reasonable time scale to pay eg 2-4 weeks

Are you calling to pay the remaining amount over the phone to bring you over a half paid?

We cannot complete the voluntary termination with no further liability until its brought over a half.

Also as stated previously – your car is subject to inspection and you will be advised of this at the time of the collection if you are liable for anything regarding damage.

[svkl]

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

Thanks for you help, will mail tonight and let you know how it goes

[R0b]

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

Yes send by email is fine, you don't need to give any reasons for VT and they cannot refuse provided you've satisfied the one half rule which you say you have. So if your more comfortable doing it by email then go ahead.

[svkl]

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

Hello Rob, the actually wording on the email is:
Yes you can send the letter in to the address below or we can accept this through email.

As long as you can state your reasoning for voluntary termination in the email and you are aware of your liability then through email is fine if that’s better for you.

Thank you

take it it should still be ok to email and liability part does not amount to much

[R0b]

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

That should be fine then

[svkl]

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

Thanks R0b, i'm sure all the agreement states is to contact them but will check when i get home.
Their reply to my email asking for the address to sent Vt letter so looks as if email will be fine and also means i have a copy aswell

Yes you can send the letter in to the address below or we can accept this through email.

[R0b]

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

hello,

looking to Vt my car this week, have contacted finance company through email for the address to send vt letter to and ask for a balance to get to 50%, have received the balance and they have said i can Vt through email stating why i want to VT, has anyone heard of doing it this way or would it be better sending letter special delivery and i take it i also do not need to give them a reason, any help appreciated

If they have accepted that you can VT by email that should be fine, I would double check your agreement as well just in case there is a formal way to do it such as in writing by post.

There is no obligation to give a reason why you want to VT and they cannot prevent a VT from happening if you choose not to give any reasons.

[svkl]

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

hello,

looking to Vt my car this week, have contacted finance company through email for the address to send vt letter to and ask for a balance to get to 50%, have received the balance and they have said i can Vt through email stating why i want to VT, has anyone heard of doing it this way or would it be better sending letter special delivery and i take it i also do not need to give them a reason, any help appreciated

[R0b]

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

Hello Rob.

the report - Damage Assessment

Document - Service history - incomplete - recharge £300 (last stamped in October 2008)
Right Rear Door - dent - PDR up to 75mm £48 (chip) wear and tear?
Rear Seat - soiled - valet £50 (it is just a very little bit of paint on it, it was there before I bought it - however don't have proof for that - will pay for it)
Load Compartment - missing - £50 (I never got this when I bought the car)
Left Rear Door - dent - PDR up to 75mm £48 (chip) wear and tear?
Left front Door - dent - Repair and refinish 1 - £213.50 (very small dent) - maybe liability for that despite it was there before when I bought the car
Left front wing- dent - PDR up to 75mm £48 (chip) wear and tear?
Front bumper scratched - through paint - £70 (it was an accident which I am happy to pay)

the total for above are £827.50

I didn't sign on the device until the person wrote on the back of the report sheet "ONLY SIGN TO SAY WE HAVE GAVE YOU REPORT NOT (not got two underlines) AGREE TO COSTS ON REPORT"... When the man wrote, I had a witness, a friend who was with me saw him writing on it and I felt this part may be in my favour?

The only thing I felt I agree with is Valet, Repair and Refinish1 and Front bumper which would cost in the region of £330?

Hi Marty,

I would say everything on there could be disputed and the ball would be in the court of the lender to argue this. Even if you want to pay £70 for the front bumper everything else would amount to fair wear and tear. The vehicle is 12 years old and would be completely unreasonable not to expect a car of that age to have had some bumps and scratches along the way. You do not need to pay for valet and certainly not the load compartment they will need to prove it was not there in the first place when the vehicle was first taken out.

Bear in mind, if the lender wants to recover any of these charges, they would need to go to court and get a court order - something they are unlikely to do as it would end up in small claims court and more than likely not commercially viable to recover. Plus they will sell the vehicle at auction and not even repair it so there is no loss to them.

Personally dispute it or at least everything but the bumper. Did you take any photos of the vehicle before it was handed over?

A VT does not affect your credit rating and their threat of a default is all puff. In fact if they attempted to default your credit report then you would arguably have a case of incorrect information, defamation and/or malicious falsehood enabling you to claim compensation through the court if you chose to do so.

I'm hoping to put some information up on VT tomorrow so may be worth a read if you get the chance.