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

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

Thanks Andy.
So is it advisable from this point to return the car ASAP and sort out any discrepancies with the creditor afterwards?

You will need to get the letter sent first advising them that you wish to VT, I usually say to send it half way though the month and advise them that there next payment will be the last under the contract, this gives them 14 days to recover the car and puts you on the right side, many will argue over the last payment, but personally I do not think it is worth the bother.

YOu can tll them that any further amounts said to be due will be addressed after the VT.

[ciaran12s]

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

Thanks Andy.
So is it advisable from this point to return the car ASAP and sort out any discrepancies with the creditor afterwards?

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

I recently spoke with my creditor on the telephone and made them aware of my wish to voluntarily terminate my contract. They sent me a pack in the post with details and instructions. In the letter they have told me that I have not paid half of the balance and therefore I will be liable to pay £449.90 and my credit score will be affected. The sum of repayments as per my contract equals £7126.66. I know that I have paid £4100.22. The contract also states under the heading;
Termination: Your Rights
"You have a right to end this agreement. To do so , you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £3563.48. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more"

As I have paid over this sum and never missed a payment on the account, why is it they are writing to tell me I owe them £449.90?
Is skulduggery from creditors normal in these circumstances? If there were something untoward with their letters and this results in a delay to me terminating the contract and having to make further payments, do I have any rights to protect me from this? If so what are they and what should I do about it?

The answer is yes it is, just send the car back and let them try and justify any charges afterwards. Don't get into an argument before the car goes back, it is all irrelevant to the VT itself, as for your credit score they can record that you VTd but this is not generally considered to be a contra indicator .

[ciaran12s]

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

I recently spoke with my creditor on the telephone and made them aware of my wish to voluntarily terminate my contract. They sent me a pack in the post with details and instructions. In the letter they have told me that I have not paid half of the balance and therefore I will be liable to pay £449.90 and my credit score will be affected. The sum of repayments as per my contract equals £7126.66. I know that I have paid £4100.22. The contract also states under the heading;
Termination: Your Rights
"You have a right to end this agreement. To do so , you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £3563.48. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more"

As I have paid over this sum and never missed a payment on the account, why is it they are writing to tell me I owe them £449.90?
Is skulduggery from creditors normal in these circumstances? If there were something untoward with their letters and this results in a delay to me terminating the contract and having to make further payments, do I have any rights to protect me from this? If so what are they and what should I do about it?

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

[QUOTE=bash1;510776]Thank you for that could they affect your credit score or pass the amount to debt collecters say while we are going back and forward with an agrement towards the millage[/QTE]

No only after you reach agreement and if you failed to keep up your end. But they will threaten all of the above, so you will have to stick to your guns.

[bash1]

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

Massive gray area, they will say that you have a contractual obligation to pay, you will say that the statute says you do not and the statute overrides the contract, in the end it usually boils down to negotiation, usually they do not like the case going to court for fear of a precedent being set.

Thank you for that could they affect your credit score or pass the amount to debt collecters say while we are going back and forward with an agrement towards the millage

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

Hi can someone confirm if i have a hp car and i vt after paying 50% if i have gone over my millage allowence say by 3000miles do i have to pay that or because i have vt the car i do not need to. I understand they will push for me to pay but by law do i have to pay??

Massive gray area, they will say that you have a contractual obligation to pay, you will say that the statute says you do not and the statute overrides the contract, in the end it usually boils down to negotiation, usually they do not like the case going to court for fear of a precedent being set.

[bash1]

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

Hi can someone confirm if i have a hp car and i vt after paying 50% if i have gone over my millage allowence say by 3000miles do i have to pay that or because i have vt the car i do not need to. I understand they will push for me to pay but by law do i have to pay??

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

Hi

Thank you for the fast response. I have approx 15k outstanding (1k neg equity from pervious bike) the bike is worth 11k market value right now. I didnt pay a deposite as i used my old bike. From those figures i would owe about 4k. Could i pay that in installments or would they demand it outright do you know?

Sounds to me like a voluntary surrender would be the best course of action as you should be left with about 3-4k to pay. They will undoubtedly demand immediate payment , but you cannot pay what you do not have, I would suggest a repayment plan for the balance(once it is agreed) you may have to do an income an outgoings statement to back up your offer, you can get help with this from one of the debt charities national debtline or stepchange if you are struggling.

[hbells]

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

Hi

Thank you for the fast response. I have approx 15k outstanding (1k neg equity from pervious bike) the bike is worth 11k market value right now. I didnt pay a deposite as i used my old bike. From those figures i would owe about 4k. Could i pay that in installments or would they demand it outright do you know?

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

[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

[winnieskip]

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

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

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

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!!