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

[Gazlee6]

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

Hi Peter,

I am not sure if this has been answered but i have followed your great orginal advice to oluntary Termination of a Hire purchase of my car, however the compnay has now written back to me saying for it to be valid I need to sign a sheet of paper and return it, in this document its outlined I need to pay a final £65.92 which would take me to my HTAP and a further £194.60 to settle the insurance element of the policy.

The bit that has me is that on the Customer response form they want me to fill in and return it says I will am agreeing to pay for any excess mileage charged! Can they do this? In the T&C of my agreement it says must be returned in a reasonable condition which the car is.

Secondly On both the agreement and settlement letter the company have my registration wrong for the vehicle I have been given and paying for, can this be exploited?

Any advice would be great

[R0b]

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

If it has been 3 weeks since they signed for it then you would have reasonable grounds to cancel your direct debit. There is nothing I am aware of within the Consumer Credit Act which defines when the date of termination. But the fact that they have only just responded after 3 weeks is more than a reasonable amount of time and could argue that the agreement had been terminated once they received the letter, or at the very latest no more than 14 days after.

[Lisatapp]

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

Hi thanks for reply-yes sent both letters "signed for" cancelled the DD same day, it was due on 21st Jan & they had both of my letters before then. Their latest letter to me is dated 21st Jan & have just noticed a sentence saying if they don't hear back from me within 7 days from 21st Jan- they will then commence with my volentary termination request, surely this is just another "drag out"? As in my mind I requested over 3 weeks ago?

[R0b]

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

Do you have proof of the letter being sent? recorded delivery or proof of postage by the post office?
does the letter the letter Moneyway sent you acknowledge your first letter to them?

Precisely when did you cancel your DD

[Lisatapp]

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 everyone
Not sure if I'm doing this correctly as never posted before.
I have contacted moneyway by letter over 3 weeks ago to vtr my car as I cannot afford it any longer, I am half way over total amount owed, but they then sent a letter back saying I need to send another one in that is signed, I'm pretty sure I signed the first one though, so I wrote back again & have received a letter today saying they will arrange an inspection & collection and I will owe if any repairs are needed etc, but I have in the mean time cancelled my direct debit as I have them notice of this over 3 weeks ago they are now saying that I am in 1 month arrears now, can they claim this too then if they had my letter of termination before next payment was due, and the fact I have paid over half of all monies due? Any advise would be much appreciated thank you

[R0b]

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

Your partner breached the agreement he signed with the lender, the lender exercised their right to terminate for a breach of the agreement, there is no second chance with voluntary termination. For voluntary termination to apply, it must be the debtor that terminates the agreement not the lender.

I'm not sure why you think it is fair for your partner to hand the car back and not make anymore payments and for the company to lose out on what they were entitled to under the agreement and some more for breaching it.

Voluntary termination is there for those who are unable to make the intended payments due to a change of circumstances and should not be abused otherwise it is likely it will be revoked in future or the financial costs will increase.

[kerrow]

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

Hi looking for some advice. My partner has a car on finance and after having some money problems he got a time order from the court to allow him to continue to pay instalments and keep the car which at the time the company was trying to reposess. He made payments which were higher than the original payments to clear debts. Anyway now we have paid off 50% of the total value so we asked to hand car back under half rule but the company is refusing as agreement was cancelled before time order was issued. How is this fair at the end of the day we have paid 50% to this company whether through court or not.

[trevor b]

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

Peter you say that It does not matter if the debitor is in arrears or if he has paid half of the total amount on the contract.

I may be being a bit dim but in the Termination: Your Rights section of my agreement it gives the “half the total amount payable under this agreement” as a figure that equals 48.1 payments well over the total number of payments required therefore I will never reach the 50% point!

The agreement only ever states that 41 payments are required so by actually needing to have made 48 payments to reach 50% are they in effect removing my rights under the Consumer Credit Act?

[R0b]

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

Hi R0b have had a look at the document and I have the following:
Fixed-Sum Loan Agreement regulated by Consumer Credit Act 1974
Something else that i have lost the first page of so i dont know what it is!
and one titled 'Your Finance Agreement - An Explanation' and this says the agreement is a personal loan agreement, does this mean its not HP and if not do i have any options here to get rid of the car without trading in?

Thanks

A fixed sum loan agreement is essentially a personal loan as if you had got one from the bank. There is no option to VT as they only apply to hire-purchase or conditional sale agreements. You have the option of early repayment which they can calculate and give you a rebate of sorts but you might want to consider option 1 now that VT isn't possible

[cdon]

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

Hi R0b have had a look at the document and I have the following:
Fixed-Sum Loan Agreement regulated by Consumer Credit Act 1974
Something else that i have lost the first page of so i dont know what it is!
and one titled 'Your Finance Agreement - An Explanation' and this says the agreement is a personal loan agreement, does this mean its not HP and if not do i have any options here to get rid of the car without trading in?

Thanks

[cdon]

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

Thanks R0b, the finance documents are at home so i will read them when i get in. Barclays Partner Finance is the lender. I can afford the payments its just because im upgrading my car i thought VT might save me some money on my deposit as if i pay £600 deposit over 400 of that is going to paying off the finance whereas if i VT the entire £600 (or whatever i choose to pay if less) is going to wards my new car.

I purchased the car from Arnold Clark and the salesman was actually my dads friend so he may vouch for this but he may not remember and wouldn't want to put someone in an awkward position. Im sure i tried a scratch remover before and dont think it worked but i will have another look at it.

Also... if i sent them the VT letter and then later changed my mind can i cancel it or is it a case when it's done it's done?

Will get back to you regarding the documents when i get home.

Thanks for the quick reply.

[R0b]

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

Unfortunately, I can't answer your question as to the best option to take but if you can't afford the payments on the current car, why continue to pay for them? The simplest answer is to get rid of the car and look at alternatives rather than potentially defaulting on your payments and then losing the right to VT.

If you can't find the clause about the right to terminate then you might not be under a hire purchase, it may actually be a hire agreement. At the top of the contract what does the title say, and who is the lender? It will say something like "XXXX Regulated by the Consumer Credit Act 1974"


In relation to the scuff on the bumper, the problem you have is that you don't have any proof that the scuff had been there since the time at which you purchased. Was this purchased at a well known dealer, did you see this advertised on a website or was it seen in person?

The law says that the vehicle needs to be in a reasonable condition, the problem with that is nobody really knows what reasonable means. This therefore gives the lender the advantage in trying to bill higher than normal charges against the borrower. The BVRLA does provide some guidance on fair wear and tear, and absent anything else, it could be used as guidance as to what is reasonable and what isn't. The BVRLA says that scratches and abrasions up to 25mm are acceptable according to the car's age and mileage and provided the bare metal is not showing. Therefore anything over and above this, the lender is likely to charge you for it. On the flipside, various leasing companies will have their own versions of what is deemed to be in a reasonable condition. You could argue yourself that the scratch was there at the time of purchase, and failing that the scratch itself does not make the car undesirable (subject to how large we are talking).

So yes, your best bet is to get a few quotes from various places and see what charges are coming in at, and maybe get a quote in writing so you have at least some sort of argument that their charges might be higher than normal. Secondly, can the scuff be minimised or reduced in terms of its look, such as scratch remover, or anything that's available over the counter?

Being upfront and honest, you will likely have some kind of problem with the lender, who will try to recover damages based on the scuff on the bumper amongst anything else they see fit. They will chase you and threaten you with everything they can in their toolkit and as you have read other posts, the question is ultimately whether your husband wants to fight it or just pay them off - some lenders will write things off, others will not.

[cdon]

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

Hi, looking for some help. I have read about 200 odd posts trying to look for the info to which it a lot of it was answered but would just like to clarify.

I currently have a hire purchase agreement with barclays which started in april 2013 and ends in march 2017. The total amount payable is £11629.36 and i have so far paid 7790.31 (this includes january payment which comes off in the next week or so).

I am looking to get a new car and have a couple of options:
1) take a car on PCP to which they are offering me £3200 on my current car (i could probably get this up a bit with some haggling). As you cant take negative equity over to a pcp deal I would then be paying £600 to take me over the equity (which is currently around £3600-3700 roughly) and give me a small deposit.
2) Getting a lease through my business (so I can purchase a better car) to which i would not be able to trade in my current car.
i have still to workout all financial details regarding this before making my decision in terms of insurance etc.

It is to my understanding that I cannot sell the car privately while there is finance still outstanding and i can't afford to pay it off and then wait for a sale. The car on the current market (by searching a like for like on autotrader) is around £4500 give or take.

If I take option 1 it is to my understanding that I would be better to do VT and then just pay £200 deposit and save myself £400? Or am i causing too much hassle doing VT and be better off just paying the money? and if option 2 then it is my thinking that VT is the only option.

I cant find anything in my contract regarding termination of the contract or anything that states 50% of total value is payable like i have seen on other posts in this thread, where would I find this? Also im not 100% sure of mileage i would have to check this in the 2years9m of having the car i think i may have done around 30000.

Damage on the car: i have what i would consider to a largeish scuff on the corner of the front bumper, this was on the vehicle when i bought it but have no way of proving this. Should i get this fixed, or maybe get a quote and if try to charge me an obscene amount challenge it? Other than this i dont think there is any damage on the car that wouldnt count as wear and tear (car is 2009 (59reg) ford with around 70k on the clock). It was recently MOT'd in December. I havent had it serviced since i bought it but would be happy to get a service prior to VT.

My last thing that is making me hesitate in doing a VT is that the car is in my husbands name. If it was in my own name i would have no problem in doing it and my husband has happy for me to go ahead with it however as i have read in some of the other posts people are having issues with the financers etc and i would feel really guilty if there was on backlash on his circumstances because of it, also he will obviously have to deal with communications, i dont mind writing letters/emails however if any phone calls are required obviously he will have to deal with this. Just wondering if anyone has had any experience with barclays and if they're quite difficult or fairly straightforward compared to other places?

Sorry for the long post, just trying to get everything in the one go (hopefully!).

Any help or advice would be greatly appreciated.

Thanks
Carly

[James1982]

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

Thank you, I will do just that :-)

[R0b]

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

Well, it could be Russian roulette with the Ombudsman although they should really take a consistent approach, providing they understand the law correctly!

So, wait for the letter's to come from Honda saying that you owe them money, then I'm sure we can draft a letter in response wishing to make a complaint under their procedures.