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

[R0b]

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

Its possible, and all depends they could offer a higher interest rate to make up for the loss made on the previous one. Arguably the agreement is terminated once they receive notice but they would normally respond and confirm it has been terminated. If you do VT, make sure to take plenty of photographs.

[Stockyboi]

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

Its possible, and all depends they could offer a higher interest rate to make up for the loss made on the previous one. Arguably the agreement is terminated once they receive notice but they would normally respond and confirm it has been terminated. If you do VT, make sure to take plenty of photographs.

Thanks for your help Rob!

[svkl]

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

Hello, Looking for some advise if possible. i have a car agreement with Close Motor Finance and unfortunately due to circumstances can no longer afford it, i am around £2000 short of the the 50% to VT it but would be cheaper taking out a loan to cancel agreement. my next payment is due 18/02 so i will pay this then i will send the VT template on this link, do i need to phone them first to tell them i am going to VT the vehicle then send the template and ask them for the balance due? also i see from previous threads it is advised not to sign anything they may send me including when they come to examine and take away the car, is this correct also. After i send them the VT should i leave it 14 days then cancel the DD and send the V5 form back even if they have not picked up the car? once again thanks for any help in advance

[svkl]

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

Hello, Looking for some advise if possible. i have a car agreement with Close Motor Finance and unfortunately due to circumstances can no longer afford it, i am around £2000 short of the the 50% to VT it but would be cheaper taking out a loan to cancel agreement. my next payment is due 18/02 so i will pay this then i will send the VT template on this link, do i need to phone them first to tell them i am going to VT the vehicle then send the template and ask them for the balance due? also i see from previous threads it is advised not to sign anything they may send me including when they come to examine and take away the car, is this correct also. After i send them the VT should i leave it 14 days then cancel the DD and send the V5 form back even if they have not picked up the car? once again thanks for any help in advance

[R0b]

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

You will need to send the VT letter in accordance with the terms of your agreement, if your contract says in writing by post or by email you do as it says otherwise you will not have terminated correctly. The lender might require you to make the £2,000 payment prior to confirming the agreement is terminated so be prepared for that and make sure you can pay it.

In your VT letter, ask them to confirm the amount outstanding to meet the 50% mark which you will pay upon being informed of the correct amount.

Once they have accepted the termination you can cancel your DD, but usually the V% requires countersigning although the DVLA may accept it if you just sign it anyway.

[EmmaL]

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

Hi, I am looking to VT my car in July. I will have paid just over half the amount by then. My agreement is a Hire Purchase with Money way. I also have a private registration that I am putting onto retention next month. My questions would be that twice during the agreement my direct debit bounced. I immediately paid the money plus late payment fees etc. Will this affect my right to VT? Also not long after I got the car, i reversed into something and cracked the light casing. I am getting this fixed next month. Also does it matter that it was a higher interest rate I got? It still specifies in the contract the amount payable half way through. I will most likely have scuffs etc on my alloys. Do you think I should look into getting these touched up? Or keep any repairs to a minimum? Also any other advice would be greatly appreciated. This is my first time doing this. I am not very clued up on my rights and don't want to be taken for a fool. Do you think I should go and get help from my local citizens advice when i go ahead with the VT? After I VT, I intend on getting another car through finance pretty much straight away. Will there be any problems obtaining finance again? Thanks

[R0b]

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

[MENTION=81094]EmmaL[/MENTION]

Don't worry about the missed payments the agreement is still continuing and you still have the right to VT. As for the vehicle, its really up to you but all I can say is that it needs only be in a reasonable condition, my opinion is that it is roadworthy and the car is not undesirable i.e. large scratches across paintwork or large dents or damage to the vehicle. Scuffs on alloys in my opinion does not make the car undesirable.

Your unlikely to get finance form the lender you VT'd with or you might get a much higher interest rate. Be careful though the lender may not update your credit report so when you try to get finance yu could rejected because its still showing on there.

[EmmaL]

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

Thanks for the advice. I know this might sound silly but I don't think my agreement with Money way is on my credit file. I applied for a loan a while back and got rejected because they didn't know why I was paying 200 odd pounds. I told them it was my car and they said it's not showing. Which I found strange. I have an account with experian and it does not show the amount I borrowed for car finance. Is that going to be a problem? I'm in about 6000 pounds negative equity with the car so it definitely needs gone. They won't be happy with me haha.

[R0b]

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

If it doesn't show on the account then you might be alright but if you get rejected you might want to check your credit report and see if its been updated. Be expected that they might try and charge you for the scuffs on alloys or any other minor scratches etc. As you will see from this thread and numerous other ones on here, lenders will do anything to recover money they may have lost by you Vt'ing the agreement.

[EmmaL]

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

Brilliant. Thanks for your help.

[p065088f]

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

Thank you for the information you have provided in the thread.

I have recently Voluntary Returned a Mercedes A Class and unfortunately I signed the VT Confirmation letter that Mercedes Finance sent out to me. They have now sent me a bill for £2421 for Excess Mileage and for damage costs. The damage is for a bumper repair that I had done by a Mercedes Benz Official repairer (I travelled a long distance and paid premium costs especially for this) and also had two wheel repairs done, by companies that were chosen by an alloy wheel insurance that was taken out with the Mercedes Finance. I sent Mercedes proof of my wheel insurance and the official repair certificate but they have not acknowledged it.

Could you please advise me on the best course of action to take against Mercedes or are my hands tied after signing the voluntary termination confirmation letter?

[R0b]

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

It could be a struggle if you signed it but even if you have, you could argue that you do not need to as the law restricts your liability. If they have failed to acknowledge any repairs on the vehicle which were done through them or an official repairer then bigger fool them. suggest you write back to them again pointing this out and that your not liable for any excess mileage. There is a few letters on here to help you out in the last 5 pages.

[EmmaL]

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?

Hi, Hope you don't mind me messaging you. I have car finance with moneyway and I'm going to VT in July when I've paid half the money. Did you find it was an easy process? They didn't try and hit you with a lot of unnecessary charges? Did someone come and collect your car or did you have to drop it off at an auction house? Also if you don't mind me asking, did you get accepted for finance afterwards? I'm going to try for finance straight after VTing. Thanks for any help you can provide.

[James1982]

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

hi R0b, just to provide an update from my posts a few weeks ago and to ask for some further advice if you wouldn't mind please. I had my Civic collected two weeks ago and had the full inspection which highlighted a few scuffs, scrapes and stone chips - nothing major. The assessor even commented the car was in a good condition for it's age (nine years). Luckily for me (or so I thought) the biggest scuff to the bumper wasn't listed on the inspection report that I signed which I imagine would have been the biggest expense. I received a letter last week from Honda demanding payment of £198.75 due to the car 'not being in a good condition for its age and mileage'.

The letter says I have ten days to arrange my own inspection if I want to dispute the charges before the car is sold at auction ( I thought it would have been sold by now). Obviously it isn't cost effective for me to arrange my own inspection so my question is do I have to pay the £198.75? Do you recommend I ask for a full breakdown of costs? In addition to this I am still expecting a demand for payment of £108 for them collecting the car which I will dispute. Thanks in advance, James.

[R0b]

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

Hi James,

Yes a full breakdown of costs and what they are demanding in terms of damage and mileage. Did you take photographs of the vehicle before you handed it over? Do you also have a copy of the inspection report?

Dispute it all is what I would say