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

[judgemental24]

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

As you have now terminated the agreement with the creditor you need to inform DVLA that you are no longer the registered keeper/owner of that vehicle.

You need to tell them the finance company have now taken possession as the agreement has been terminated. Give DVLA the full details of the finance company.

Please please send by recorded delivery

After you have terminated the agreement it is reasonable to wait 2 weeks., to dispose of the vehicle

They might ask you to drive it to an aucton 30 miles away, but no further. If they play silly buggers they can come and collect it from your home

Any longer remind them of their liabiliy with DVLA as the vehicle is parked on the highway and might get clamped

[Strett]

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

Hi - thanks for this thread and replies to people's questions, it has been really useful for me personally as I have now started a VT on my own car bought via a HP with Moneyway.
I was up to date on payments but £650 short of the 50% mark stated in agreement if I go by the amount paid thus far as advised on the phone by their customer services person so I paid it that day. I sent an email with a signed scan of the letter attached and sent the letter via recorded delivery, which was confirmed by royal mail as signed for the next day; so I think I've done everything right.
I rang Moneyway yesterday as it's been over a week with no response and the car insurance policy we have ended yesterday - all they said was that it was with the legal team being looked at that day and I would get a letter by the end of the week.

I have two questions - firstly, should I still be insuring & taxing the car until they collect it? It's not in use currently, just sat on my drive. I have sent the Yellow form from the V5C off with just my signature (and a not to say I'm handing it back) but not had a note back from the DVLA as yet.
Secondly, how long is acceptable to wait to get a collection/drop off arranged?

[judgemental24]

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

They have to allow a certain amount of damage due to the age and milage of the vehicle.
They cannot charge for scuffs and stone chips, that is a normal motoring hazard and can happen at any time.

What ths rep is saying happens every time a VT is done and very difficult to enforce. You need to be challenging the alleged damage

[alloa64]

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

Just had a call from Wayne at RMS, I terminated 3 months early, owe them nothing for the finance as i was well over my 50% i have offered to pay the mileage over the initial 18000 and for the damage on the car, listed as scuffs and stone chips - he says the car was dirty i said i was not paying for scuffs not listed on the sheet , he says i have to pay pro rata for mileage. I knew i would have to pay something for the mileage but the charges are excessive - the car will be punted to an auction house and the repairs will not be carried out. What are my rights

[debsydo]

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

does this apply to static caravans etc or just cars?
ty

[RichM]

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

just realised I resurrected an old VT thread from about 3 years ago....apologies!

see below for original question. thanks:

Hi Everyone,

I have been reading this thread for a while and used the template letter to VT my car in May. MB Finance have now wrote to me advising that I owe them £1200+ for damages to the vehicle. The damages are as follows
- excess mileage charge - this I am happy to pay as I was over the mileage pro-rata
- poorly refurbished alloys - I had all 4 alloys refurb'd due to kerb damage, the alloys were diamond cut but have been refurbished to a v good standard, however, are not diamond cut
- poorly repaired front bumper - I had the front bumper repaired due to a scuff to the paintwork, admittedly the front bumper repair wasn't 100% perfect.

My concern is that the car went straight to auction and was sold, I dont believe these repairs have been carried out and as such I am paying for repairs that will never happen. I have advised MB of this and their reply was:

'In relation to providing evidence of the repair work carried out on the car, the fact that we choose to repair our cars before onward disposal is a remarketing decision and not a requirement to justify any charges we believe are payable by the customer. The agreement is worded accordingly and is also the reason why no VAT is applicable to any damage charges that we issue to the customer since the charge is classed as a compensation charge for not returning the car within the return standard as opposed to a charge for actual works carried out.'

Where do I stand with this? Can they charge me as compensation?

thanks
Rich.

[Kimeda]

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

My question is slightly different. I have a VW Polo and was not given the option to refinance or part exchange due to a poor credit rating. The obvious thing to do therefore is voluntary termination. I told the finance company in July I wanted to hand back the car. The finance company is saying they will not accept the car back unless it has a valid MOT certificate. The car only became three years old and therefore due for MOT in July. I have not been using the car as I went elsewhere and have a different car on HP. I cannot afford to get the car MOT so what happens next?

[Vicp]

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

Hello all

So here is my case

I have a vehicle on HP from Hartwell.
I have made arrangements to exercise my right to VT.
when I first got the car back in 2012 I was making high payments and my contract included a mileage cap along with excess mileage charge. 6 months after I contacted them to reduce my payments resulting in a new contract being issued , which luckily for me didn't have anywhere written about an excess mileage. I've spoken to a solicitor ( however cars / HP are not their area ) and she has said I should b ok as it's not in my current , in force agreement.
I've read the horror stories about them trying everything but as long as my contract in force doesn't mention it I should b ok??

So one thing that is my fault is that the vehicle wasn't serviced last year. It was MOT'd but not serviced at the ford garage. I understand that this is my fault. Does anyone know the knock on effect for me having a missing stamp in my book? The agreement says as recommended any the manufacturer which is either mileage or dates ??

Help? I'll prob get stung but I need to prepare myself for the cost?!

Any help appreciated

[singlis13]

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

Hi there!
I terminated my car 2 months ago, was over 50% on the agreement and had an inspection on site which showed no faults. However, we were well over our milage and our pcp deal stated 6p per mile over the agreed amount.
The problem I have is that we have not received any bill what so ever or any communicatiom saying nothing i owed. I've read horror stories about people getting huge bills months later. Are they allowed to do this or is there a maximum time limit in which they have to send any bills? I'm really worried we'll get a massive bill randomly through the post in a few months.
Thanks

[Nicola0007]

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

Hi,

I am trying to sort out collection with Santander but they want to charge me £70 or drive it to new castle! I live in central Scotland so it's not reasonable. I told them they can't do this under CCA but they want the legislation in writing from me. Does anyone know where I can get it or exactly what I need to say to them? Hoping to get the car picked up next week. Any help would be great

[Doglady06]

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

Hi,

I was wondering if I could please have some clarification on 'You will be aware that statute prevents you from levying a charge for the recovery of this vehicle; guidelines also state that if you require me to deliver this vehicle it must be no more than a short (reasonable distance) from my registered address' which I got from a draft letter to write to my car finance to voluntary terminate my HP. The predicament I have is when I called my car finance company to enquire about the financial settlement, I was told that I would have to pay £100 for them to pick the car up or drop it off which is 38 miles away. However, I am a wuss and suffer severe panic attacks when driving and I know that I can't manage just the 38 miles, I was wondering if I could state in the letter that I am amenable to a reasonable levy or am I just shooting myself in the foot. I hope that makes sense!

Any advice would be gratefully appreciated.

[NI2015]

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

Hi

Having serious problems with BMW Finance after VT'ing agreement. I followed all suggested advices regarding initial VT letter, did not sign any forms and returned the car in excellent condition. Nil charges in respect of the vehicle although I did spend about £500 on service, new tyres and other repairs pre-VT.

Currently being chased for an excess mileage charge in the region of £1,100. I have responded twice by letter. First letter stating nothing further to pay as 50% paid (and more) in respect of the total contract price. Second letter sent stating S99/S100 CCA 1974 and requesting that credit invoice is issued for excess mileage charge.

They are advising that I have the option of referring to the Financial Ombudsman and do not accept any of my arguments re statute law vs contract law. They also confirm that Financial Ombudsman has ruled in BMW Finance's favour in similar cases.

A lot of the reading I did pre-VT suggested that excess mileage charge does not have to be paid and examples of people who had invoices credited after challenging finance company. Main article of reference was http://www.thecarexpert.co.uk/car-fi...nation-pcp-hp/. In particular this paragraph:

"Can I be charged for excess mileage?


One of the ways people exploit the voluntary termination clause is with very high mileage. For example, if you cover 30,000 miles per year then your car will be worth much less after 3 years than a car that has only covered 5,000 miles per year. The finance company cannot charge you for high mileage, only any costs arising from “damages if you have failed to take reasonable care of the goods (over and above normal wear and tear)”. If you’ve done 100,000 miles but the car is in good condition, they can’t do a thing – well, other than refuse to finance you ever again."

I have followed all advices re VT and post collection of car.

Not sure where to go next. Any advice would be greatly appreciated.

[Nicola0007]

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

Hi guys!! Another newbie here.

Recently I contacted my finance company about VT. I was advised to write in a letter and also emailed unfortunately I didn't send SD so they said they hadn't received anything. My circumstances have changed, I've went back into full time education and can't afford my payments anymore. I was getting the run around so I cancelled my DD as I knew that would make them get in touch. I received the phone call today and explained everything (also my husband lost his job 2 days ago so am glad I cancelled DD) the guy on the phone was really helpful and everything seems pretty straight forward - next letter I'll send SD which will be on Tuesday. I'm a couple months off the 50% but he said an agreement will be made to pay that off. I'm wondering, because I've missed this months payment can they now say I'm not entitled to VT? I didn't think when cancelling DD. also he said about a collection charge, which I read they can't charge, I just want to double check with that and excess mileage? We went over stated mileage for our agreement as soon after we got the car my husband got a sales job which required a lot of traveling. Any help would be great. Thank you Nicola.

[Angie123]

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

Apologies if this has already been covered in this thread.

My dad has just passed away and we need to terminate his car finance agreement and hand the car back. Next month, we will have paid 50% of the finance so we are going to let that payment go through and then terminate. The question we have is, although the car is an 08 plate and in reasonable condition for its age, it does have a small dent in the rear but not paint damaged. Should we get this fixed before termination to avoid any hassle or should we just forget it and wait to see what they say?

Given that the person they contracted with has now died, who would they come to for any extra money?

Any advice on this would be really appreciated.

[tommo]

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

Hi,

I have VT'd an agreement with Mercedes Benz Finance and they are now seeking payment, circa £2000, in respect of excess mileage. The VT was in month 35 of 36

They are claiming that the excess mileage liability was accrued prior to the contract termination. Can anyone confirm whether this is a correct interpretation of S99(2) CCA 1974. If this section is only in respect of missed payments can anyone please point me at some reference to take to court.

Thanks