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

[Wombats]

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

Reasonable wear and tear is allowed for. You shouldn't be charged for the brake pads as long as it's been serviced.

[nobodysdriving]

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

Reasonable wear and tear is allowed for. You shouldn't be charged for the brake pads as long as it's been serviced.

it's been serviced, thank you, I will definitely post here an update as and when I have news (well first after I have handed in the car...this is due to be done monday, then a few weeks later if I have a letter or not...but at this stage am kind of 'expecting' a request for payment from these sharks).

I have looked at my car properly today, I see NO DAMAGE anywhere, not one scratch. the only scratch is on ONE of the plastic wheel covers. NOTHING ELSE at all. Hopefully all will be ok.

[Wombats]

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

It sounds like it should be strightforward. Get the photos and remember the newspaper as proof of date. Scratches on wheel trims - fair wear and tear, but possibly not worth arguing about. Good luck!

[Talljams]

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

Hi guys I'm looking for some advice. I recently started the process to VT my peugeot but i seem to have lost the service/manual book, will i still be able to return the car and will i be charged for the loss of the book?... Also there is some damage to the alloys will i also be charged for this bearing in mind that the car is six years old
many thanks

[nobodysdriving]

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

It sounds like it should be strightforward. Get the photos and remember the newspaper as proof of date. Scratches on wheel trims - fair wear and tear, but possibly not worth arguing about. Good luck!

Hi Wombats

At the end I decided to 'go with the flow' so:

I did not bring with me my 'damage list' to record anything, after all my car is free of any damage apart from a few small scratched on just ONE of the plastic wheel hubs.

But: I have recorded the conversion with sales man and I have taken photos of the car (which are dated by my camera).

the sales man accepting my car did not have ANY damage check list himself, and did not ask me to sign for anyting

he said there was nothing wrong with the car apart from the light scratches on one wheel hub which he said would be 'normal wear and tear' and I should not be charged for that. He noted the mileage 5565 miles from new (car is 22 months old from registration)

I said to him I am very worried and am expecting a letter from RMS asking for damage to be paid, he said 'well, if such letter arrives they have nothing to stand on as the car is perfect apart from a lightly scratched wheel hub'

we signed section 9 of the log book which I have to post to DVLA tomorrow

now's the 'waiting'!

I will update you all in due time

PS I took photos of car on way out

[Jodelpilot63]

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

With respect to Voluntary termination of a vehicle once 50% (or not) of the contract value has been paid it is my understanding that in these circumstances you cannot be charged any excess mileage. Can anyone confirm if that is correct?

[Guest]

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

The CCA and section 100 says noting about mileage, only that reasonable care should be have taken of the goods under the contract. Generally this is interpreted as the normal usage which most motoring organisations consider to be about 12-15k per anum. However any usage over this would be down to negotiation.
On PCP agreements there is generally a clause in the contract which states the mileage allowance, the jury is still out as to if this is enforceable or not. Some say(and I agree) that the contractual term cannot override the requirements of legislation and the terms are not enforceable. Others(lenders mostly) will say that these are the terms you agreed to when you took the vehicle on therefore you are liable,

[Jodelpilot63]

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

Is there any case histories that support the way this is interpreted. I'd be (reasonable) happy to pay mileage above the normal average but I think but the CCA is pretty clear in that I would be exercising my statutory rights in relation to the act and it doesn't mention anything about mileage. Does it not say something like once half the total value (is that current or original) been paid then there dis nothing further to pay? or words to that effect?

[ncf355]

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

My attitude would be to apply a reasonable attitude to mileage

If you agreed to 12k a year and its 15k a year you've done, don't sweat it

If however you agreed 12k a year an have done 40k a year, I think you ought to be prepared to pay something in excess mileage, but more what would be reasonable for the drop in the cars value (based on others for sale with that type of mileage), as opposed to some invented 'P per mile' equation from the finance company.

Think that attitude would also stand you in good stead should the creditor (unwisely) decide to take you to court (V unlikely IMHO)


I'm also quite intrigued to see what happens where some of these finance companies have placed grey (as in, not an actual default, but close...) markers on someones file after they've used their rights to VT - I'm convinced that if the debtor could show they would have had a clean credi history without such a marker, there would be a basis for damages

[Guest]

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

Is there any case histories that support the way this is interpreted. I'd be (reasonable) happy to pay mileage above the normal average but I think but the CCA is pretty clear in that I would be exercising my statutory rights in relation to the act and it doesn't mention anything about mileage. Does it not say something like once half the total value (is that current or original) been paid then there dis nothing further to pay? or words to that effect?

This is the problem, and some may say that it is odd considering the amount of time that this has been in force that there isn't. There are plenty of lower court cases, b ut the decisions in thee seem to go either way and are dependent very much on the individual circumstances.

Some of us have also tried to get a definitive view from the FO but so far all we have had is a note from one of the first tier advisers, which says that on PCP agreements anyway the contractual charges are valid, he does not however address any of the points raised regarding the legislation, and invites the questioner to refer to the ombudsman for further advice.

Personally if millage is not mentioned in the contract and the milliage used is below 15K i would certainly not pay a penny, if it was I would seek to negotiate.

It it was a PCP agreement then it is up to the individual, personally I would question these also, lenders are loathe to go to court with these I find and usually settle rather than have the matter tested, unless they feel they can get a default judgment.

[Jodelpilot63]

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

It is a PCP but have no idea when taking it out about the mileage so took 10k a year. It does seem a little one side though as if I took 15k (about what its seems I ended up doing) and only drove 12k then I think its "highly" unlikey they give me back 9p per mile so I see this as a penalty as its not even handed in that regards so surely if the mechanism isn't 100% then it unenforceable?

[Wombats]

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

It is a PCP but have no idea when taking it out about the mileage so took 10k a year. It does seem a little one side though as if I took 15k (about what its seems I ended up doing) and only drove 12k then I think its "highly" unlikey they give me back 9p per mile so I see this as a penalty as its not even handed in that regards so surely if the mechanism isn't 100% then it unenforceable?

This isn't how it would be looked at. If you did 9K per year, they'd say you should have agreed a lower mileage (and thus lower payments) at the start. Mileage under is therefore disregarded.

Excess mileage is a contractual term, but appears to in conflict with the legislation. Which takes preference? It is always argued on a case by case basis, and that depends a lot on the confidence of the person negotiating. I, like Andy58, would not pay it and argue the toss, others would pay and avoid the battle, others would reach agreements part way between the two.

There is no right or wrong, or not one that has been defined so far as nobody of whom we're aware has taken it all the way to argue the point. As things are at the moment, it's very much what you feel confident negotiating and what suits your circumstances best.

I'm sorry we can't be more definitive, but it's best to go into it knowing the true position.

[Guest]

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

It is a PCP but have no idea when taking it out about the mileage so took 10k a year. It does seem a little one side though as if I took 15k (about what its seems I ended up doing) and only drove 12k then I think its "highly" unlikey they give me back 9p per mile so I see this as a penalty as its not even handed in that regards so surely if the mechanism isn't 100% then it unenforceable?

Yes and of course this is one of our arguments, such a term clearly breaches the unfair terms regulations in that it is soley to the benefit if the lender, it is in fact a penalty as you say.

[Wombats]

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

Sorry, posts crossed.

[Jodelpilot63]

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

Is the correct description of the legislation the "Consumer Credits Act 1974"? There seems to be a 2006 version (I assume containing amendments). Also can anyone point me at the section or preciser paragraph that details the position of once 50% of the value of the vehicle has been paid the agreement can be terminated with nothing more to be paid> Search function on the PDF version doesn't seem to locate anything I look for?

P.S All, thanks for the advice and response. Much appreciated.