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

[EmmaL]

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

Brilliant. Thanks for your help.

[R0b]

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

If it doesn't show on the account then you might be alright but if you get rejected you might want to check your credit report and see if its been updated. Be expected that they might try and charge you for the scuffs on alloys or any other minor scratches etc. As you will see from this thread and numerous other ones on here, lenders will do anything to recover money they may have lost by you Vt'ing the agreement.

[EmmaL]

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

Thanks for the advice. I know this might sound silly but I don't think my agreement with Money way is on my credit file. I applied for a loan a while back and got rejected because they didn't know why I was paying 200 odd pounds. I told them it was my car and they said it's not showing. Which I found strange. I have an account with experian and it does not show the amount I borrowed for car finance. Is that going to be a problem? I'm in about 6000 pounds negative equity with the car so it definitely needs gone. They won't be happy with me haha.

[R0b]

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

[MENTION=81094]EmmaL[/MENTION]

Don't worry about the missed payments the agreement is still continuing and you still have the right to VT. As for the vehicle, its really up to you but all I can say is that it needs only be in a reasonable condition, my opinion is that it is roadworthy and the car is not undesirable i.e. large scratches across paintwork or large dents or damage to the vehicle. Scuffs on alloys in my opinion does not make the car undesirable.

Your unlikely to get finance form the lender you VT'd with or you might get a much higher interest rate. Be careful though the lender may not update your credit report so when you try to get finance yu could rejected because its still showing on there.

[EmmaL]

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

Hi, I am looking to VT my car in July. I will have paid just over half the amount by then. My agreement is a Hire Purchase with Money way. I also have a private registration that I am putting onto retention next month. My questions would be that twice during the agreement my direct debit bounced. I immediately paid the money plus late payment fees etc. Will this affect my right to VT? Also not long after I got the car, i reversed into something and cracked the light casing. I am getting this fixed next month. Also does it matter that it was a higher interest rate I got? It still specifies in the contract the amount payable half way through. I will most likely have scuffs etc on my alloys. Do you think I should look into getting these touched up? Or keep any repairs to a minimum? Also any other advice would be greatly appreciated. This is my first time doing this. I am not very clued up on my rights and don't want to be taken for a fool. Do you think I should go and get help from my local citizens advice when i go ahead with the VT? After I VT, I intend on getting another car through finance pretty much straight away. Will there be any problems obtaining finance again? Thanks

[R0b]

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

You will need to send the VT letter in accordance with the terms of your agreement, if your contract says in writing by post or by email you do as it says otherwise you will not have terminated correctly. The lender might require you to make the £2,000 payment prior to confirming the agreement is terminated so be prepared for that and make sure you can pay it.

In your VT letter, ask them to confirm the amount outstanding to meet the 50% mark which you will pay upon being informed of the correct amount.

Once they have accepted the termination you can cancel your DD, but usually the V% requires countersigning although the DVLA may accept it if you just sign it anyway.

[svkl]

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

Hello, Looking for some advise if possible. i have a car agreement with Close Motor Finance and unfortunately due to circumstances can no longer afford it, i am around £2000 short of the the 50% to VT it but would be cheaper taking out a loan to cancel agreement. my next payment is due 18/02 so i will pay this then i will send the VT template on this link, do i need to phone them first to tell them i am going to VT the vehicle then send the template and ask them for the balance due? also i see from previous threads it is advised not to sign anything they may send me including when they come to examine and take away the car, is this correct also. After i send them the VT should i leave it 14 days then cancel the DD and send the V5 form back even if they have not picked up the car? once again thanks for any help in advance

[svkl]

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

Hello, Looking for some advise if possible. i have a car agreement with Close Motor Finance and unfortunately due to circumstances can no longer afford it, i am around £2000 short of the the 50% to VT it but would be cheaper taking out a loan to cancel agreement. my next payment is due 18/02 so i will pay this then i will send the VT template on this link, do i need to phone them first to tell them i am going to VT the vehicle then send the template and ask them for the balance due? also i see from previous threads it is advised not to sign anything they may send me including when they come to examine and take away the car, is this correct also. After i send them the VT should i leave it 14 days then cancel the DD and send the V5 form back even if they have not picked up the car? once again thanks for any help in advance

[Stockyboi]

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

Its possible, and all depends they could offer a higher interest rate to make up for the loss made on the previous one. Arguably the agreement is terminated once they receive notice but they would normally respond and confirm it has been terminated. If you do VT, make sure to take plenty of photographs.

Thanks for your help Rob!

[R0b]

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

Its possible, and all depends they could offer a higher interest rate to make up for the loss made on the previous one. Arguably the agreement is terminated once they receive notice but they would normally respond and confirm it has been terminated. If you do VT, make sure to take plenty of photographs.

[Stockyboi]

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

Hi

I have 2½ years left on my HP agreement with Citroen Finance but now want to buy a new Citroen. Part exchanging would add about £1500 (negative equity) to any new agreement so I'd rather VT. Perrys have agreed terms with Citroen Finance again if I complete on my VT, although they've also obtained a quote from Barclays Finance. Although Citroen Finance have been (seemingly) very agreeable and helpful, is it strange that either company would offer finance knowing I'm terminating my current agreement? Also, I'm concerned it could drag on and I'll be without a car until I can buy the new one. Is the current agreement terminated as soon as the car is collected? Would it be more sensible to just do part ex?

Thanks for any advice.

[R0b]

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

you need to meet the 50% of the total price payable and if that means an extra £2,000 then yes that is right

[Ricky M]

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

TO BE USED WHEN YOU WANT TO TERMINATE A HIRE PURCHASE AGREEMENT (courtessy of Debtline UK)
WITH YOUR CREDITOR
(Your home address)
__________________________
__________________________
__________________________
__________________________
Date:______________________
To: ___________________________
___________________________
___________________________
___________________________
Dear Sir/Madam
VOLUNTARY TERMINATION OF AGREEMENT
Account No: (CAR MAKE/MODEL/REGISTRATION NO.)
I am/we are writing to notify you that I am/we are exercising my/our right to terminate the above Agreement under Section 99 of the Consumer Credit Act 1974.
I/we understand that I shall/we will be liable to you for the amount calculated under the formula in Section 100 of the Consumer Credit Act
Please send me/us details of how the vehicle can be returned to you.
Please confirm receipt of this request by telephone/fax to me/us on (your telephone number or fax number).
Yours faithfully
(Your Signature)

REMEMBER
TO KEEP A COPY OF LETTERS YOU SEND TO YOUR CREDITORS

I want to VT the lease I have on my car. They are telling me if I do that I have just over £2000 to pay which would mean it's half way. Do I have to pay this?

[debster300]

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

Please help!! Just had a call from finance company stating that as I have not paid to half amount if I vt the car I'm liable for it all...even though I cannot afford payment so it will end up being repo anyway please please help

[R0b]

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

Hi Gazlee,

No they cannot charge you for excessive mileage provided the car is in a reasonable condition. Even more if its not in the terms of the agreement then they cannot even attempt to recover it although sounds like they are arguing that excessive mileage means the car is not in reasonable condition.

I would advise against signing of any paperwork, this is merely for them to argue that you have agreed to pay the excess mileage but you are not obliged to. What you can do is reply back to them but say you agree to pay the HTAP and insurance amount but do not agree to paying the excess charges, nor do you agree to sign the letter and return it.

Depending on the time at which you sent the letter and they replied, I would say that they have a further 7 or 14 days to collect the vehicle at which point if they do not you shall be cancelling the tax and insurance and the responsibility of ensuring the car is taxed and insured shall remain solely with them. If they fail to collect or wont budge then I would send the V5 document to the DVLA (recorded post or get proof of postage) and then cancel your tax and insurance, and make sure to cancel the DD too and it will be their responsibility.

Take a look at post #8 on this thread for a an example response but you will need to tailor it to your needs.
http://legalbeagles.info/forums/show...RMS-Receivable