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

[Kestrel86]

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

Hi Andy!

Right so I received the forms that they so desperately want me to sign and return and it states the figure plus the collection cost so I called them and said I'm not signing the forms or paying the collection costs. She then said she can waive the insurance costs of £430 if I pay the £75 and return the forms. That would be then end of it. So I asked for this on writing but she said she can't send me anything but the calls are recorded and assured me I would not get billed any further.

I paid the £75 but now I'm scared to send the forms back as they say I'm liable for the car until it's sold etc and the contract will run until it's sold.

She said without the forms they will contest the wording of my letter and basically put up a fight (in so many words). This is so stressful what do I do? Fill the forms in to get rid of them or will this make things 10 times worse.

[Guest]

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

Hi Andy!

Right so I received the forms that they so desperately want me to sign and return and it states the figure plus the collection cost so I called them and said I'm not signing the forms or paying the collection costs. She then said she can waive the insurance costs of £430 if I pay the £75 and return the forms. That would be then end of it. So I asked for this on writing but she said she can't send me anything but the calls are recorded and assured me I would not get billed any further.

I paid the £75 but now I'm scared to send the forms back as they say I'm liable for the car until it's sold etc and the contract will run until it's sold.

She said without the forms they will contest the wording of my letter and basically put up a fight (in so many words). This is so stressful what do I do? Fill the forms in to get rid of them or will this make things 10 times worse.

Thats a new one what exactly does it say about the liability for the car, exact words please.

[Guest]

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

Hi there... So sorry to intrude this post but I posted above a few days ago with a similar situation to this member. I was contracted to 6000 per annum but would like to contest this. My car has 23000 miles on and I had it for 2 years and five months from new. Could you give me some pointers on how to word my letter to argue my case with RMS receivables. Your help is much appreciated.

The main arguments are

That the Consumer credit act and the contract says that once one half of the total amount payable under the contract is paid nothing else is due.

The amount due on termination is defined in section 100 of the CCA and it says nothing bout excess millage fees.

You cannot include a term in a contract which contravenes a provision included in statute for the protection of the consumer (contracting out), such an excess millage term would be in contravention of section 100 and section 173(no contracting out permissible)

Such a term in a contract would be a penalty in common law and unenforceable, as it is not a genuine pre-estimte of losses under the contract, if it were there would be a value for under usage, and a rebate given if the given millage was not attained.

This term was not negotiated under the contract nor was it a core term and therefore under the Unfair Terms in Consumer Contracts act 1999, and I would assert that the term was unfair in that it did not fairly balance the inters of both parties for the above reason.

Work those into a letter in your own words, just as a starter.

[Kestrel86]

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

The form says -
'I also understand that I may have an additional liability if I have not taken reasonable care of the goods and the resale price is adversely affected'

The woman on the phone explained that this means they will send me a letter telling me that I will be liable for the car until it is sold and not to cancel any direct debits or assume my contract has ended until they send me a letter confirming it has been sold. She also said I will be liable for any faults they might find which could affect the resale. The car is absolutely fine but what if they damage it or make something up to try and charge me at a late date?!

[Guest]

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

The form says -
'I also understand that I may have an additional liability if I have not taken reasonable care of the goods and the resale price is adversely affected'

The woman on the phone explained that this means they will send me a letter telling me that I will be liable for the car until it is sold and not to cancel any direct debits or assume my contract has ended until they send me a letter confirming it has been sold. She also said I will be liable for any faults they might find which could affect the resale. The car is absolutely fine but what if they damage it or make something up to try and charge me at a late date?!

No you are only liable for the vehicle until the agreement is terminated, after that it is there worry.

You must cancel your direct debit after the last payment, i would also contact your bank if you have ever made any card payment sin case they have kept your number, probably not needed, but if it were me I would do it anyway since they seem to think that they can take extra money out of your account.


The form itself says nothing of the sort, if this is all it says you can sign it if you want and send it back.

You are not responsible for the price they get at auction, that would be ridiculous, no judge would ever hold still for that, what if the auctioneer had an off day. Nonsense. There is no way they could enforce such a daft idea so you can sign it as it is or if you feel better put a line through the bit about the auction and n it then photo copy the altered document and then send it.

If you talk to the young lady again you can inform her that the agreement will be terminated wen you say, and the vehicle will be their property from that point.

[Shutterz]

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

The main arguments are

That the Consumer credit act and the contract says that once one half of the total amount payable under the contract is paid nothing else is due.

The amount due on termination is defined in section 100 of the CCA and it says nothing bout excess millage fees.

You cannot include a term in a contract which contravenes a provision included in statute for the protection of the consumer (contracting out), such an excess millage term would be in contravention of section 100 and section 173(no contracting out permissible)

Such a term in a contract would be a penalty in common law and unenforceable, as it is not a genuine pre-estimte of losses under the contract, if it were there would be a value for under usage, and a rebate given if the given millage was not attained.

This term was not negotiated under the contract nor was it a core term and therefore under the Unfair Terms in Consumer Contracts act 1999, and I would assert that the term was unfair in that it did not fairly balance the inters of both parties for the above reason.

Work those into a letter in your own words, just as a starter.

Ah thank u so much Andy that's great! I found an answer earlier on in the thread regarding how to word the letter for the damage they are pursuing me for that isn't there and now I can add this to my letter regarding the excess milage! I'm just so reluctant to give them another penny after them misleading me over deposits and so on! I'll let you know how I get on.

Thank you you once again...

[Guest]

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

Ah thank u so much Andy that's great! I found an answer earlier on in the thread regarding how to word the letter for the damage they are pursuing me for that isn't there and now I can add this to my letter regarding the excess milage! I'm just so reluctant to give them another penny after them misleading me over deposits and so on! I'll let you know how I get on.

Thank you you once again...

Yes and you want to mention that right at the beginning of the letter also, if the salesman made an agreement with you which convinced you to hire the car then this is a binding agreement in law, it certainly should be mentioned. It is called anticedant negotiations, you can say that during anticedent negotiations the salesman said that..... and this was a principle reason for the purchases.

[Guest]

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

I should mention that me and Mr peterbard, for the few who do not know are one of the same, if I continue to post on this forum I may revert to my earlier name as I want to concentrate more on this kind of issue, unless admin have other ideas of course

[alphawhiskey]

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

Ah thank u so much Andy that's great! I found an answer earlier on in the thread regarding how to word the letter for the damage they are pursuing me for that isn't there and now I can add this to my letter regarding the excess milage! I'm just so reluctant to give them another penny after them misleading me over deposits and so on! I'll let you know how I get on.

Thank you you once again...

Hi Shutterz and Andy, this is v useful for me too, so thank you. I just wondered what you found for the wording re the damage. It'd be useful for me to use too, so if you're able to post it, that'd be great... Sounds like we are both up against RMS!

[Guest]

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

Hi Shutterz and Andy, this is v useful for me too, so thank you. I just wondered what you found for the wording re the damage. It'd be useful for me to use too, so if you're able to post it, that'd be great... Sounds like we are both up against RMS!

The issue regarding to the vehicle whilst you are in posession, is that you are liable for repairs
It is always better to get these done yourself before the car goes back, otherwise they are justified in chasing you for the cost. Damage cannot halt the vt process though.

[Shutterz]

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

Hi Shutterz and Andy, this is v useful for me too, so thank you. I just wondered what you found for the wording re the damage. It'd be useful for me to use too, so if you're able to post it, that'd be great... Sounds like we are both up against RMS!

Hi Angela,

Yes it certainly does sound like we're in the same situation. I made some progress today...... Did you read my earlier posts? I had 2 extremely minor stone chips and 1 small scratch to the alloy. They were well within the fair wear and tear policy and I had taken photographs with the day of collection newspaper in each shot of every angle of the car as this forum has stated to do. The man who collected the car said that there would be no charge but I didn't trust him so I wrote next to the signature on the form that there was no damage over the fair wear and tear policy. Then I had a bill from RMS stating damage that wasn't there and damage above the policy. I emailed RMS whilst waiting for a reply on how to respond from this forum and I asked them to provide me with receipts that they had carried out the repairs and to provide me with photos of the damage they have found. I just had a call from them today saying they have waived the charge completely!!! I could believe it! I am still annoyed though that they have tried to get money out of me for damage that wasn't there!!

Do you think I should still pursue the excess Milage charge of £399? I am just so reluctant to give them anything due to the miss selling of the vehicle and the £200 deposit I paid peugeot (which I have the receipt for) which did not go towards the finance agreement as stated and I had to pay this in order to get to the 50% mark for the VT.


Angela...If you look on page 11 of this thread and read posts by van on 3rd March there is a letter that he has drafted that he is going to send regarding damage. But if I were u I would do as I've done and ask for a receipt of the repairs and ask for proof of the damage they have found!! Good luck xxx

[Shutterz]

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

Hi sorry Andy that post was for you too... Sorry about it waffling on a bit I'm trying to reply using my phone and I can't see what I've written! Haha. Thank you

[Shutterz]

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

Yes and you want to mention that right at the beginning of the letter also, if the salesman made an agreement with you which convinced you to hire the car then this is a binding agreement in law, it certainly should be mentioned. It is called anticedant negotiations, you can say that during anticedent negotiations the salesman said that..... and this was a principle reason for the purchases.

Hi Andy,

I have drafted a letter regarding the excess milage to send to RMS receivables. I just need to add the point about the deposit as you described above. I wonder if you could explain this a bit more to me please. When I purchased the vehicle new in 2012 the salesman asked for a £200 deposit which I paid by card and have the receipts. When I came to VT, peugeot finance said I still owed £214.60. They would not accept that I had the receipt for the deposit and said that the salesman hadn't apllied this to the finance agreement and told me I would have to take it up with the dealer. When I rang peugeot and spoke to one of the salesman he said I should have had this deposit refunded to me which I definately did not. He got my account up on the screen and confirmed that this did not occur. The salesman who sold me the car no longer works for peugeot. I then spoke to the manager and she said the deposit would have been used to offset negative equity from my previous peugeot. This was not stated to me by the salesman at the time. I rang peugeot financial services back and they said that there was nothing they could do about this and said I must pay the £214.60 or else I coulnt VT. So rightly or wrongly I paid. So this is why I am really reluctant to give them another penny as I feel as though I have been lied to by this salesman over several things aswell as the deposit issue. Sorry this is long winded I hope I have explained the situation. Thanks Andy, Claire.

[Guest]

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

Hi Andy,

I have drafted a letter regarding the excess milage to send to RMS receivables. I just need to add the point about the deposit as you described above. I wonder if you could explain this a bit more to me please. When I purchased the vehicle new in 2012 the salesman asked for a £200 deposit which I paid by card and have the receipts. When I came to VT, peugeot finance said I still owed £214.60. They would not accept that I had the receipt for the deposit and said that the salesman hadn't apllied this to the finance agreement and told me I would have to take it up with the dealer. When I rang peugeot and spoke to one of the salesman he said I should have had this deposit refunded to me which I definately did not. He got my account up on the screen and confirmed that this did not occur. The salesman who sold me the car no longer works for peugeot. I then spoke to the manager and she said the deposit would have been used to offset negative equity from my previous peugeot. This was not stated to me by the salesman at the time. I rang peugeot financial services back and they said that there was nothing they could do about this and said I must pay the £214.60 or else I coulnt VT. So rightly or wrongly I paid. So this is why I am really reluctant to give them another penny as I feel as though I have been lied to by this salesman over several things aswell as the deposit issue. Sorry this is long winded I hope I have explained the situation. Thanks Andy, Claire.

The first thing is that you do not have to pay anything to VT, the act says that you can terminate the agreement at any time, you do not have to have paid 50% to be able to do it.
I presume you have sent the VT letter ? If so the car will be their problem on the date prescribed in the letter, if they want o pursue for any further money they think you owe they will have to do it after the car has gone back and explain why you were diddled out of this money to the judge.

[alphawhiskey]

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

Hi Angela,

Yes it certainly does sound like we're in the same situation. I made some progress today...... Did you read my earlier posts? I had 2 extremely minor stone chips and 1 small scratch to the alloy. They were well within the fair wear and tear policy and I had taken photographs with the day of collection newspaper in each shot of every angle of the car as this forum has stated to do. The man who collected the car said that there would be no charge but I didn't trust him so I wrote next to the signature on the form that there was no damage over the fair wear and tear policy. Then I had a bill from RMS stating damage that wasn't there and damage above the policy. I emailed RMS whilst waiting for a reply on how to respond from this forum and I asked them to provide me with receipts that they had carried out the repairs and to provide me with photos of the damage they have found. I just had a call from them today saying they have waived the charge completely!!! I could believe it! I am still annoyed though that they have tried to get money out of me for damage that wasn't there!!

Do you think I should still pursue the excess Milage charge of £399? I am just so reluctant to give them anything due to the miss selling of the vehicle and the £200 deposit I paid peugeot (which I have the receipt for) which did not go towards the finance agreement as stated and I had to pay this in order to get to the 50% mark for the VT.


Angela...If you look on page 11 of this thread and read posts by van on 3rd March there is a letter that he has drafted that he is going to send regarding damage. But if I were u I would do as I've done and ask for a receipt of the repairs and ask for proof of the damage they have found!! Good luck xxx

Hi there Claire - thanks so much for all that... and in fact yes - I did actually end up sending an email asking about invoices/receipts for the 'damage' work so I'll see what they come back with. That's great about them calling you to waive the charges - well done! I bet that's a big relief for you... although as you say it's just all so unjust in the first place. Good luck with the mileage - I think you should hold your ground, but that's easy for me to say eh ;-)... Angela xx