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

[ieuuu]

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

No worries, just make sure when you right to them you specifically mention that you are writing to terminate in accordance with section 99 of the Consumer Credit Act 1974 so there is no confusion, and best advised recorded delivery or at least get proof of postage from the post office.

hi im new to this forum and in desperate need of help.

i sent GMAC ( the finance company through vauxhall) a completed version of the template on the beginning of the thread and i received a letter today from gmac. please see attached.

i am very confused with the wording that they use. i would be extremely thankful if someone could advise me.

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thanks in advance

[R0b]

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

No worries, just make sure when you right to them you specifically mention that you are writing to terminate in accordance with section 99 of the Consumer Credit Act 1974 so there is no confusion, and best advised recorded delivery or at least get proof of postage from the post office.

[James1982]

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

R0b, sincere thanks for your detailed reply, I'm sure you have better things to be doing on a Monday evening :-). I will proceed as you have recommended and see how it pans out. I will report back with the (hopefully successful) outcome. Does the website accept donations as I would like to show my appreciation somehow. Thank you, James.

[R0b]

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

Thank you R0b for the quick reply. A few more questions if I may:

If I state in the letter that the agreement is terminated immediately, can I still drive the car until it is collected or I drop it off? (I am guessing I can as they have given me the option of taking it to the auction house). Do I send off the v5 documents to the DVLA only once I have handed the car over? Also will it be ok to keep the car parked on the road in the time between sending the letter and having the car collected / dropped off at the auction house? (I will only cancel the tax and insurance when the car is no longer in my possession)

If Honda refuse to collect the car free of charge and / or insist on me driving to Birmingham where do I stand? I can't make them do as I would like them to can I? It does state in the t's and c's that the collection charge is applicable

Yes, you hold possession of it for them until they come to collect so you could use it but I'd advise to use it as little as possible unless they say you cannot use it. You will need to get the agent to countersign the V5 and then send off once they have collected. Yes you can keep it on the road provided it is taxed and insured. Write in your letter you give them 14 days to collect the car, if they refuse to do so then you will cancel tax/insurance and charge them for storage until they come to collect. They are usually quite prompt on collecting although be reasonable, if they can collect in 15 days theres no point cancelling the tax/insurance.

They might send you a letter confirming the agreement is terminated and ask to sign and return slip to sy you agree to collection charges, dont send it back. If they call or their agent calls to collect the car and mentions charges say you ar enot obliged to pay for them as you have VT'd the contract. If they continue to argue then simply tell them that you will cancel the tax/insurance after 14 days and then invoice them for storage of the car until they collect or you could say that once the tax/insurance is cancelled, it is their responsibility as they have been given adequate notice to collect. They will soon come collect the car.

[James1982]

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

Thank you R0b for the quick reply. A few more questions if I may:

If I state in the letter that the agreement is terminated immediately, can I still drive the car until it is collected or I drop it off? (I am guessing I can as they have given me the option of taking it to the auction house). Do I send off the v5 documents to the DVLA only once I have handed the car over? Also will it be ok to keep the car parked on the road in the time between sending the letter and having the car collected / dropped off at the auction house? (I will only cancel the tax and insurance when the car is no longer in my possession)

If Honda refuse to collect the car free of charge and / or insist on me driving to Birmingham where do I stand? I can't make them do as I would like them to can I? It does state in the t's and c's that the collection charge is applicable

[R0b]

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

Hello to everyone affiliated to this board, thank you for all existing posts it has proved to be a very useful source of information indeed. I am looking to VT my agreement with Honda Finance after reaching the 50% payments. I have read through this most of this thread but I am unsure on a few points if I could ask for some advice please. I am ready to send my letter to Honda advising I wish to VT

1. I have read on here that I would have to give 28 / 31 days notice to VT as my yearly payment is less than £1500 but after speaking with Honda today they did not mention this notice period (I did ask). They just said they would look to collect the car as soon as possible. If Honda collect / I drop off my car within the 28 / 31 days is it possible that I would be hit with a retrospective charge from Honda? Also they said they cannot arrange to collect the car until I have signed the pack they will send in the post which could take up to ten days - is this right?

There's nothing within the act that says you cant terminate immediately. You could say the agreement is terminated effective immediately upon receipt of the letter (48-72 hours after posting).

2. The MOT expires on 29/01/2016 - is there a minimum number of days it has to be valid for when I VT?

No, but you should inform them of the date of MOT if its close.


3. My car is due its yearly service on 22/01/2016 (I have had the car serviced yearly with a Honda main dealer since owning the car). Should I look to get it serviced before I VT?

No, there is no point wasting more money.

4. Honda have advised I can drop the car off at the nearest auction house in Birmingham which I don't consider to be a reasonable distance to travel. They also gave me the option of having it collected for a charge of £108. I have read on this forum that they cannot charge anything for collecting the car and they must offer a local drop off point. I would probably drop the car off if they offered somewhere more local within say 30 miles. Am I within my rights to refuse to pay the collection charge (it is in the agreement t's and c's that the £108 is payable)

I wouldn't agree to paying for the collection charges, they own the car they should come and collect it. If its not in a reasonable distance to what you feel then they will have to collect free of charge.

Really appreciate any help with this

James

See my comments in red above.

[James1982]

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

Hello to everyone affiliated to this board, thank you for all existing posts it has proved to be a very useful source of information indeed. I am looking to VT my agreement with Honda Finance after reaching the 50% payments. I have read through this most of this thread but I am unsure on a few points if I could ask for some advice please. I am ready to send my letter to Honda advising I wish to VT

1. I have read on here that I would have to give 28 / 31 days notice to VT as my yearly payment is less than £1500 but after speaking with Honda today they did not mention this notice period (I did ask). They just said they would look to collect the car as soon as possible. If Honda collect / I drop off my car within the 28 / 31 days is it possible that I would be hit with a retrospective charge from Honda? Also they said they cannot arrange to collect the car until I have signed the pack they will send in the post which could take up to ten days - is this right?

2. The MOT expires on 29/01/2016 - is there a minimum number of days it has to be valid for when I VT?

3. My car is due its yearly service on 22/01/2016 (I have had the car serviced yearly with a Honda main dealer since owning the car). Should I look to get it serviced before I VT?

4. Honda have advised I can drop the car off at the nearest auction house in Birmingham which I don't consider to be a reasonable distance to travel. They also gave me the option of having it collected for a charge of £108. I have read on this forum that they cannot charge anything for collecting the car and they must offer a local drop off point. I would probably drop the car off if they offered somewhere more local within say 30 miles. Am I within my rights to refuse to pay the collection charge (it is in the agreement t's and c's that the £108 is payable)

Really appreciate any help with this

James

[R0b]

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

Yes, send the VT letter which mentions s.99 an liability under s.100. They should invoice you the difference between what you have paid and what is owed up to 50% of the total amount payable. you would normally need to pay them within a reaosnable time which is usually deemed 14 days or more. As for cancelling your DD, there's nothing within the CCA that says how much notice is given before terminated but as I said in my post, if the letter sent recorded delivery then you could say the letter is terminated as soon as it has been received by them and cancel you DD. You could probably add that into the letter if you like.

you are not obliged to sign anything they ask, thy may send a letter asking to sign and return slip to agree to pay collection, excess mileage charges or a damage report. There is no obligation for you to do that, just be aware if you sign someting like the damage report you are effectively agreeing to the damage and will be difficult to get out of.

You may also wish to insert something like the agreement is hereby terminated effective immediately and give them a contact number to arrange collection.

Make sure you take plenty of photographs inside and out of the car including any scratches, marks or dents, there is no need to have the car valeted but you should really give it a hoover and tidy up so is in a reasonable state.

[sscoular]

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

HI R0b, thanks for the quick reply,just so i understand clearly, i send the VT letter (i think there is a template in this thread) and they should invoice me the balance between what i have paid them and what the 50% is? i them pay them this within 14-30 days and should i cancel the DD 14 days after they sign for receiving the VT letter, also i take it i do not sign anything they send out to me, thanks again in advance

[R0b]

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

Hello all, looking for a bit of advise, looking to VT my agreement with close brothers motor finance due to not being able to afford car anymore, i will be about £2,200 short of the 50% but can raise this, my question is when i send the VT letter from and give them 14 days to collect car do i need to sign anything they send out to me and also do i need to have the £2,200 before i send the VT letter or can i pay it once they agree to the VT, sorry one other question, do i cancel my direct debit 14 days after i send the VT letter

Yes, you write your letter to terminate, they will invoice you the final amount, and then you pay it within a reasonable time 14-30 days usually - send your letter recorded delivery make sure it arrives on time once it has been received and signed for then cancel your DD

[sscoular]

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

Hello all, looking for a bit of advise, looking to VT my agreement with close brothers motor finance due to not being able to afford car anymore, i will be about £2,200 short of the 50% but can raise this, my question is when i send the VT letter from and give them 14 days to collect car do i need to sign anything they send out to me and also do i need to have the £2,200 before i send the VT letter or can i pay it once they agree to the VT, sorry one other question, do i cancel my direct debit 14 days after i send the VT letter

[R0b]

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

Hi all, a wealth of information here which I really appreciate, however I'm a little confused and looking for clarification and guidance.

Im looking to vt my 48 month pcp with Nissan due to the vehicle no longer being fit for purpose as I have a growing family and as such have out grown the car very quickly. However I'm unsure how short I am from reaching the 50% required to do so, and whether it takes into consideration the deposit I paid. Equally the figures below don't match up in my head so looking for some help.

My documentation states the following:

Total cash price of goods: £15290.00
Less cash deposit/part exchange (total advance payments): £3000
Total amount of credit: £12290.00
Total charge for credit: £3723.80
The duration of the credit agreement: 48 months
Repayments: 1 monthly instalment(s) of £353.90 on the repayment start date (inclusive of any Finance Facility Fee), followed by 47 monthly instalment(s) of £204.90 and 1 monthly instalment(s) of £6029.60. An Option to Purchase Fee of £149.00 (inc VAT) is included in the final instalment.

However, it then specifies Total amount payable: £19013.80 and specifies I have a right to end this agreement. To do so I must have paid half the total amount payable under this agreement, and states the amount is £9506.90.

However im confused, as I feel this amount should be lower. The basis of this is the price of goods (the vehicle) being £15290.00 minus my £3000 deposit, makes the amount of credit £12290.00, with the total charge of credit being £3723.80 which in turn totals £16013.80 however it then says total amount payable £19013.80, which is what the half amount is based on and I think it should be based on the £16013.80 amount.

To date I've paid towards the car £3000 deposit, the one off amount of £353.90, followed by 15 months of £204.90, So my question is, is it correct that I'm £3433.40 off the 50% mark needed, or is it the case the half amount is wrong and I'm actually £1579.50 off the mark.

Equally am am I right in saying the half amount specified does take into consideration your deposit?

Reslly really appreciate any any help on this one.

Regards
Craig

Yes craig you are right, they have deducted the deposit and so they cannot then just add the £3000 back on. I would contact them and query it, your calculations should be right.

[Cra1g]

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

Hi all, a wealth of information here which I really appreciate, however I'm a little confused and looking for clarification and guidance.

Im looking to vt my 48 month pcp with Nissan due to the vehicle no longer being fit for purpose as I have a growing family and as such have out grown the car very quickly. However I'm unsure how short I am from reaching the 50% required to do so, and whether it takes into consideration the deposit I paid. Equally the figures below don't match up in my head so looking for some help.

My documentation states the following:

Total cash price of goods: £15290.00
Less cash deposit/part exchange (total advance payments): £3000
Total amount of credit: £12290.00
Total charge for credit: £3723.80
The duration of the credit agreement: 48 months
Repayments: 1 monthly instalment(s) of £353.90 on the repayment start date (inclusive of any Finance Facility Fee), followed by 47 monthly instalment(s) of £204.90 and 1 monthly instalment(s) of £6029.60. An Option to Purchase Fee of £149.00 (inc VAT) is included in the final instalment.

However, it then specifies Total amount payable: £19013.80 and specifies I have a right to end this agreement. To do so I must have paid half the total amount payable under this agreement, and states the amount is £9506.90.

However im confused, as I feel this amount should be lower. The basis of this is the price of goods (the vehicle) being £15290.00 minus my £3000 deposit, makes the amount of credit £12290.00, with the total charge of credit being £3723.80 which in turn totals £16013.80 however it then says total amount payable £19013.80, which is what the half amount is based on and I think it should be based on the £16013.80 amount.

To date I've paid towards the car £3000 deposit, the one off amount of £353.90, followed by 15 months of £204.90, So my question is, is it correct that I'm £3433.40 off the 50% mark needed, or is it the case the half amount is wrong and I'm actually £1579.50 off the mark.

Equally am am I right in saying the half amount specified does take into consideration your deposit?

Reslly really appreciate any any help on this one.

Regards
Craig

[PFIN9922]

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

see the attached image, you should have something like that and that is the target you need to reach to VT. If you dont have anything like that then it could in fact be a fixed loan agreement. If your really usnure then you can post up the contract and retract personal info and can take a look.

Thanks mate, I have reviewed and found the aforementioned paragraph. It does in fact say that the settlement figure is £18,020 and i have paid a little over £10,000. So it looks like I'm snookered and will either have to pay the £8000 surplus or keep the car and continue the payments.

Thanks again for your advice.

Paul

[R0b]

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

see the attached image, you should have something like that and that is the target you need to reach to VT. If you dont have anything like that then it could in fact be a fixed loan agreement. If your really usnure then you can post up the contract and retract personal info and can take a look.