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

[cdon]

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

Hi R0b have had a look at the document and I have the following:
Fixed-Sum Loan Agreement regulated by Consumer Credit Act 1974
Something else that i have lost the first page of so i dont know what it is!
and one titled 'Your Finance Agreement - An Explanation' and this says the agreement is a personal loan agreement, does this mean its not HP and if not do i have any options here to get rid of the car without trading in?

Thanks

[R0b]

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

Hi R0b have had a look at the document and I have the following:
Fixed-Sum Loan Agreement regulated by Consumer Credit Act 1974
Something else that i have lost the first page of so i dont know what it is!
and one titled 'Your Finance Agreement - An Explanation' and this says the agreement is a personal loan agreement, does this mean its not HP and if not do i have any options here to get rid of the car without trading in?

Thanks

A fixed sum loan agreement is essentially a personal loan as if you had got one from the bank. There is no option to VT as they only apply to hire-purchase or conditional sale agreements. You have the option of early repayment which they can calculate and give you a rebate of sorts but you might want to consider option 1 now that VT isn't possible

[trevor b]

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

Peter you say that It does not matter if the debitor is in arrears or if he has paid half of the total amount on the contract.

I may be being a bit dim but in the Termination: Your Rights section of my agreement it gives the “half the total amount payable under this agreement” as a figure that equals 48.1 payments well over the total number of payments required therefore I will never reach the 50% point!

The agreement only ever states that 41 payments are required so by actually needing to have made 48 payments to reach 50% are they in effect removing my rights under the Consumer Credit Act?

[kerrow]

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

Hi looking for some advice. My partner has a car on finance and after having some money problems he got a time order from the court to allow him to continue to pay instalments and keep the car which at the time the company was trying to reposess. He made payments which were higher than the original payments to clear debts. Anyway now we have paid off 50% of the total value so we asked to hand car back under half rule but the company is refusing as agreement was cancelled before time order was issued. How is this fair at the end of the day we have paid 50% to this company whether through court or not.

[R0b]

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

Your partner breached the agreement he signed with the lender, the lender exercised their right to terminate for a breach of the agreement, there is no second chance with voluntary termination. For voluntary termination to apply, it must be the debtor that terminates the agreement not the lender.

I'm not sure why you think it is fair for your partner to hand the car back and not make anymore payments and for the company to lose out on what they were entitled to under the agreement and some more for breaching it.

Voluntary termination is there for those who are unable to make the intended payments due to a change of circumstances and should not be abused otherwise it is likely it will be revoked in future or the financial costs will increase.

[Lisatapp]

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

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

The intention of this piece is to clarify the situation regarding VT’s. There is much misinformation given from various sources, some of it well-meaning and some perpetuated by dealers who fully know that the provisions give the debtor an effective tool to mitigate losses on an unwise purchase.

It is true to say that this particular piece of legislation survived the recent consumer credit reforms by the skin of its teeth, there were many lobbying for it to be rescinded.

First some basic facts:

1) Contrary to popular belief, the debtor is fully entitled to terminate the agreement at any time. It does not matter if he is in arrears or if he has paid half of the total amount on the contract.

2) The debtor does not have to fill in a form provided by the creditor in order to voluntary terminate the vehicle. It is quite acceptable for the debtor to just write a letter giving the creditor reasonable notice. (We will include some template letters later in the thread for you to use.)

3) The creditor cannot charge a fee of any kind for this; he is compelled to provide this service by statute.

4) You do not have to make any special arrangement to return the car; they must arrange either a local drop off point, or free collection.

5) If no arrangements can be made for return of the vehicle, it must be made clear that a charge will be made against them to cover storage.

6) The vehicle does not have to be in pristine condition when you return it. They cannot refuse the Termntation whatever the condition. All that is required by statute is that the goods were” reasonably well” looked after.

7) It is true that they are entitled to charge for any work needed to return the vehicle to a reasonable standard. To this end they may ask you to witness a condition report on termination.
You do not have to attend anything although it may be in your interests to do so. Sometimes these are carried out by an independent agency such as the RAC other times it is one of the dealer’s employees. At the end of the inspection they will ask you to sign the report. Do not sign unless you totally agree with what is on it and it is properly particularised. “A slight indentation on rear off side”, could land you with a bill for a new wing.

8) To repeat you do not have to sign anything, they are compelled by statute to accept the car back the agreement is terminated.

Peter

Hi everyone
Not sure if I'm doing this correctly as never posted before.
I have contacted moneyway by letter over 3 weeks ago to vtr my car as I cannot afford it any longer, I am half way over total amount owed, but they then sent a letter back saying I need to send another one in that is signed, I'm pretty sure I signed the first one though, so I wrote back again & have received a letter today saying they will arrange an inspection & collection and I will owe if any repairs are needed etc, but I have in the mean time cancelled my direct debit as I have them notice of this over 3 weeks ago they are now saying that I am in 1 month arrears now, can they claim this too then if they had my letter of termination before next payment was due, and the fact I have paid over half of all monies due? Any advise would be much appreciated thank you

[R0b]

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

Do you have proof of the letter being sent? recorded delivery or proof of postage by the post office?
does the letter the letter Moneyway sent you acknowledge your first letter to them?

Precisely when did you cancel your DD

[Lisatapp]

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

Hi thanks for reply-yes sent both letters "signed for" cancelled the DD same day, it was due on 21st Jan & they had both of my letters before then. Their latest letter to me is dated 21st Jan & have just noticed a sentence saying if they don't hear back from me within 7 days from 21st Jan- they will then commence with my volentary termination request, surely this is just another "drag out"? As in my mind I requested over 3 weeks ago?

[R0b]

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

If it has been 3 weeks since they signed for it then you would have reasonable grounds to cancel your direct debit. There is nothing I am aware of within the Consumer Credit Act which defines when the date of termination. But the fact that they have only just responded after 3 weeks is more than a reasonable amount of time and could argue that the agreement had been terminated once they received the letter, or at the very latest no more than 14 days after.

[Gazlee6]

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

Hi Peter,

I am not sure if this has been answered but i have followed your great orginal advice to oluntary Termination of a Hire purchase of my car, however the compnay has now written back to me saying for it to be valid I need to sign a sheet of paper and return it, in this document its outlined I need to pay a final £65.92 which would take me to my HTAP and a further £194.60 to settle the insurance element of the policy.

The bit that has me is that on the Customer response form they want me to fill in and return it says I will am agreeing to pay for any excess mileage charged! Can they do this? In the T&C of my agreement it says must be returned in a reasonable condition which the car is.

Secondly On both the agreement and settlement letter the company have my registration wrong for the vehicle I have been given and paying for, can this be exploited?

Any advice would be great

[R0b]

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

Hi Gazlee,

No they cannot charge you for excessive mileage provided the car is in a reasonable condition. Even more if its not in the terms of the agreement then they cannot even attempt to recover it although sounds like they are arguing that excessive mileage means the car is not in reasonable condition.

I would advise against signing of any paperwork, this is merely for them to argue that you have agreed to pay the excess mileage but you are not obliged to. What you can do is reply back to them but say you agree to pay the HTAP and insurance amount but do not agree to paying the excess charges, nor do you agree to sign the letter and return it.

Depending on the time at which you sent the letter and they replied, I would say that they have a further 7 or 14 days to collect the vehicle at which point if they do not you shall be cancelling the tax and insurance and the responsibility of ensuring the car is taxed and insured shall remain solely with them. If they fail to collect or wont budge then I would send the V5 document to the DVLA (recorded post or get proof of postage) and then cancel your tax and insurance, and make sure to cancel the DD too and it will be their responsibility.

Take a look at post #8 on this thread for a an example response but you will need to tailor it to your needs.
http://legalbeagles.info/forums/show...RMS-Receivable

[debster300]

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

Please help!! Just had a call from finance company stating that as I have not paid to half amount if I vt the car I'm liable for it all...even though I cannot afford payment so it will end up being repo anyway please please help

[Ricky M]

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

TO BE USED WHEN YOU WANT TO TERMINATE A HIRE PURCHASE AGREEMENT (courtessy of Debtline UK)
WITH YOUR CREDITOR
(Your home address)
__________________________
__________________________
__________________________
__________________________
Date:______________________
To: ___________________________
___________________________
___________________________
___________________________
Dear Sir/Madam
VOLUNTARY TERMINATION OF AGREEMENT
Account No: (CAR MAKE/MODEL/REGISTRATION NO.)
I am/we are writing to notify you that I am/we are exercising my/our right to terminate the above Agreement under Section 99 of the Consumer Credit Act 1974.
I/we understand that I shall/we will be liable to you for the amount calculated under the formula in Section 100 of the Consumer Credit Act
Please send me/us details of how the vehicle can be returned to you.
Please confirm receipt of this request by telephone/fax to me/us on (your telephone number or fax number).
Yours faithfully
(Your Signature)

REMEMBER
TO KEEP A COPY OF LETTERS YOU SEND TO YOUR CREDITORS

I want to VT the lease I have on my car. They are telling me if I do that I have just over £2000 to pay which would mean it's half way. Do I have to pay this?

[R0b]

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

you need to meet the 50% of the total price payable and if that means an extra £2,000 then yes that is right

[Stockyboi]

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

Hi

I have 2½ years left on my HP agreement with Citroen Finance but now want to buy a new Citroen. Part exchanging would add about £1500 (negative equity) to any new agreement so I'd rather VT. Perrys have agreed terms with Citroen Finance again if I complete on my VT, although they've also obtained a quote from Barclays Finance. Although Citroen Finance have been (seemingly) very agreeable and helpful, is it strange that either company would offer finance knowing I'm terminating my current agreement? Also, I'm concerned it could drag on and I'll be without a car until I can buy the new one. Is the current agreement terminated as soon as the car is collected? Would it be more sensible to just do part ex?

Thanks for any advice.