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

So we sent a recorder letter (using the template) to Citroen Finance UK on the 6th of December and we have not heard anything yet.
My wife is a little worried as it is in her name but I have informed her to read through this
We are around the 50% mark of the PCP but are 10,000 miles over the agreed mileage (contract was 10k miles a year, the car is 2 years old and we are at 29k miles).
I take it we can cancel the direct debit now?
We will keep you posted on the events

As long as the agreement is terminated and there are no more payments due to be made, you are safe to cancel the direct debit.

[DB654]

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

Hi folks,

I recently VT my car, BMW 325i M-Sport, all I had to pay was my liability to take me up to the 50% point of my agreement. I did not pay this straight away.

The initial liability was £2600 or so after excess mileage etc etc.

I got it down to £1200 which I was happy with. (£900 of which was my 50% liability anyway)

Here is a template of the letter I sent them after reading this forum. This was all resolved within 4 weeks from when they collected the car.

Car was collected 21st Nov 2014, I paid and concluded the matter today by using the below template as my opening letter of dispute for their so called "charges"

This is the only letter I sent them (apart from my initial VT one) regards the dispute of their liability charges, I had 2 replies, one to say they are investigating my complaint and the 2nd letter I received today was acceptance of my offer.


Dear XXXXXXXXX,

Agreement No –
XXXXXXX, Vehicle Make/Model – XXXXXXX, Reg. No. – XXXXXX

Thank you for your letter dated XXXXXXXXXX with regards to my Voluntary Termination request.

As you are aware, the Consumer Credit Act 1974 allows for me to voluntarily terminate our agreement without further cost, providing the vehicle agreement has had 50% of the total sums due paid.

I accept my liability of XXXXXXXX to bring me to 50% of the total sums due under this agreement and the vehicle has already been returned in a reasonable condition and any further payments from me via direct debit have been cancelled.

Accordingly, I believe that you are attempting to circumvent the clear legal statute within CCA 1974 via an unlawful term in your agreements concerning your excess mileage charge and therefore dispute these charges.

OPTIONAL - Additionally I dispute the charges for damages to the alloys, they were present when I purchased the vehicle and as such was reflected in the price paid at the time of purchase.

OPTIONAL - I also dispute the cost of a missing spare key, again because this never came with the vehicle when purchased.

I wish to know how you have justified these liabilities in line with the Consumer Credit Act 1974 section 100, which only states that "reasonable care" must be taken of the goods."

There is no mention of excess mileage charges, since the act itself only says "reasonable care", any contractual stipulation which seeks to override this would be "contracting out" of the legislation and not allowed under section 173 of the CCA.

Due to the above, I hereby state that I accept my liability for £XXXXXXX to bring me to 50% of the total sums due under this agreement. I will pay an additional £XXXXXXX as a gesture of goodwill to cover any reasonable damages to bring the total liability to £XXXXXXX.

Please confirm your acceptance of the above. As soon as confirmation is received, I will make payment as stipulated above for the total sum of £XXXXXXX to conclude this matter.

I would add that I require and demand all contact to be made in writing or by email.

Yours sincerely


I hope this can help others that are currently going through the same process.

Feel free to adapt and change the letter so suit your needs or circumstances. The important parts are the references to the relevant clauses in the CCA

[Wombats]

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

Excellent, well done you. Once they realise you know your rights, but are prepared to be reasonable, they are usually OK.

[kellysanchez]

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

I wanted to know what do. I purchased a vehicle on Monday Dec 29 2014 sign a in house finance agreement without driving the car or anything (Dumb of me) I had just seen it on ksl and I liked it so I went to their dealership and signed right away they just showed it to me in their car garage but when I had seen it I wasn't as excited to buy it because it wasn't what I expected, but the sales man said it wont look like this we need to detail it and put in the radio and it will be ready on Wednesday that same week then he called me on Saturday and said it wont be ready till Monday the following week. So I asked the manager if he could give me back what I put down($6000). He said no because we had already signed the agreement. I wanted to know if their is any options for me to cancel the deal and get my money back. And so he gave me the car today and said safely and emission passed so when I took it home I noticed the belts don't work.. Is their anything I could do???

[wensleydaleuk]

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

Hi All

First of all I just wanted to say a big thank you to everyone who has contributed to this thread, it really helped me as I processed my own voluntary termination recently.

Secondly I wanted to ask - is there a time limit within which the finance company has to notify you of any charges relating to the condition report? It is nearly a month since I handed my car over to Mannheim auctions and I have heard nothing from the finance company. I was expecting at least a bill for a couple of alloy wheel scuffs but nothing. Seems a little unfair to take so long over something like this. To be honest Mannheim were completely useless, they couldn't even produce a signable condition report for me, so could I dispute anything that came through anyway?

Many thanks

Steve

[Guest]

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

Hi All

First of all I just wanted to say a big thank you to everyone who has contributed to this thread, it really helped me as I processed my own voluntary termination recently.

Secondly I wanted to ask - is there a time limit within which the finance company has to notify you of any charges relating to the condition report? It is nearly a month since I handed my car over to Mannheim auctions and I have heard nothing from the finance company. I was expecting at least a bill for a couple of alloy wheel scuffs but nothing. Seems a little unfair to take so long over something like this. To be honest Mannheim were completely useless, they couldn't even produce a signable condition report for me, so could I dispute anything that came through anyway?

Many thanks

Steve

I would always question any invoice after a VT, they will try and get as much out of you as they can usually. Nowadays people are becoming more aware, due mostly to forums like this and are not paying up like they used to, so you hear more stories of lenders just not bothering, I would think a couple of scuffs would be just reasonable use in any case.

[winnieskip]

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

Hi all, I'm after some advice, can anyone tell me what the difference is between HP and a credit sales agreement?, we have the latter and I'm not sure if we can VT with this type of agreement. There is no "right of termination" section in our contract, but on a separate sheet of paper it states that we have no VT rights with this type of contract. thankyou.

[Guest]

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

Hi with a credit sale agreement, you borrow the money to buy the car. ]
On a hire purchase agreement the car is hired until the last payment, then on the option to buy installment, the ownership passes to the hirer.

Voluntary termination does to apply to credit sale agreement, however you are free to do with the car what you wish, so you can sell to pay off a part of the agreement for instance.

[winnieskip]

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

Hi Andy, thanks for the reply, your last sentence..i can't VT with a credit sales agreement?

[Guest]

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

Hi Andy, thanks for the reply, your last sentence..i can't VT with a credit sales agreement?

No unfortunately not, because the car belongs to you, so you cannot hand it back.

[winnieskip]

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

sorry to keep on Andy, we were given a "Bill of sale borrower information sheet". On that it says.. "a bill of sale is what gives us security over your vehicle, this means that until you have repaid your loan WE ARE TECHNICALLY THE LEGAL OWNER OF YOUR VEHICLE. however you can keep on driving it and once you have paid off your loan the ownership goes back to you. It also says if we default within the time stated on notice, WE WILL BE ENTITLED TO TAKE POSSESSION OF THE VEHICLE AND SELL IT. YOU SHOULD NOTE THAT WE DO NOT NEED A COURT ORDER TO REPOSSESS YOUR VEHICLE............. I'm sooooo confused!!

[Guest]

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

sorry to keep on Andy, we were given a "Bill of sale borrower information sheet". On that it says.. "a bill of sale is what gives us security over your vehicle, this means that until you have repaid your loan WE ARE TECHNICALLY THE LEGAL OWNER OF YOUR VEHICLE. however you can keep on driving it and once you have paid off your loan the ownership goes back to you. It also says if we default within the time stated on notice, WE WILL BE ENTITLED TO TAKE POSSESSION OF THE VEHICLE AND SELL IT. YOU SHOULD NOTE THAT WE DO NOT NEED A COURT ORDER TO REPOSSESS YOUR VEHICLE............. I'm sooooo confused!!

OK then this is a bill of sale agreement, this is something different again.
Yes you sign over the rights of the agreement to the lender until the debit is paid. Unfortunately again although the bill of sale runs concurrent (and secures)a credit agreement it does not have any of the protection associated with a HP or conditional sale agreement. So no VT.

[winnieskip]

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

Ok, many thanks for your help Andy, much clearer.

[hbells]

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

Hi

Thanks for all the info in this thread, im in a slightly different position i want to VT on a Harley Davidson that i have had for 8 months. My circumstances have changed and i can no longer afford the repayments. The bike is in pristein condition with less than 500 miles on the clock. Its on a 4 year PCP with the option of ballon payment at the end.

Guess im just really asking are what are my chances of VT for this, if they bike is still worth 11k will i only be liable for the difference on the outstanding balance?

Any help apprecited

[Guest]

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

Hi

Thanks for all the info in this thread, im in a slightly different position i want to VT on a Harley Davidson that i have had for 8 months. My circumstances have changed and i can no longer afford the repayments. The bike is in pristein condition with less than 500 miles on the clock. Its on a 4 year PCP with the option of ballon payment at the end.

Guess im just really asking are what are my chances of VT for this, if they bike is still worth 11k will i only be liable for the difference on the outstanding balance?

Any help apprecited

VT is not always the bet option, if you voluntarily surrender the bike you will be liable for the full amount of the agreement less any deposit you paid and less the value of the bike.

This is against half the contract value if you VT, you will have to do the figures to see which is the best deal for you