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

Thanks for the reply @R0b

I have missed one payment , which they agreed could be spread out over the next 3 months to catch up, so no default as of yet.

so I owe just over £10,000 on the agreement so would I only have to pay half of this back and would that be coverd by the sale of the car at auction ?

Thanks

Lee

So just to clarify they have not sent you a default notice letter?

If the total amount payable is what you suggested being a little over £10k then yes you would only require to pay 50% of that.

In your contract there will be a heading called "Termination: Your Rights" which will tell you how much the 50% mark is. The lender has the right to have the car returned and sell it and keep whatever they make, it does not get deducted from the 50% of what you owe.

Your right to VT is lost if the lender terminates first so you should do this before they can terminate the agreement i.e. once they've sent you a default notice letter and you fail to make the payment within the specified time on the letter, however you can VT during the time period specified on the default notice.

- - - Updated - - -

Hi. Hope you don't mind me butting in. I have just done the same thing. You should not cancel the direct debit until the car has been collected. If a payment comes out before the car is collected it gets refunded. That's what I was told today anyway.

@adaw, @Purpleparrotuk If you have given written notice to the lender and specified when the contract will end e.g. immediately or 14 days etc then the contract will terminate according to the content of your letter or in any case a reasonable period of time which is more difficult to work out if its not been agreed.

Once the contract is terminated you can cancel you DD as you are under no obligation to make any further instalments, unless you have not yet paid the 50% which you will then need to come to an arrangement with the lender to repay the outstanding balance.

[adaw]

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

Hi. Hope you don't mind me butting in. I have just done the same thing. You should not cancel the direct debit until the car has been collected. If a payment comes out before the car is collected it gets refunded. That's what I was told today anyway.

Don't mind at all! Many thanks for the advice.

[lee7]

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

Thanks for the reply [MENTION=71570]R0b[/MENTION]

I have missed one payment , which they agreed could be spread out over the next 3 months to catch up, so no default as of yet.

so I owe just over £10,000 on the agreement so would I only have to pay half of this back and would that be coverd by the sale of the car at auction ?

Thanks

Lee

[Purpleparrotuk]

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

many thanks @R0b - I have just made a payment to the finance company and will soon be sending out the VT letter. Can I then cancel my next DD or will that cause problems? I'm worried that if I don't cancel it it will be taken out...

Hi. Hope you don't mind me butting in. I have just done the same thing. You should not cancel the direct debit until the car has been collected. If a payment comes out before the car is collected it gets refunded. That's what I was told today anyway.

[adaw]

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

many thanks [MENTION=71570]R0b[/MENTION] - I have just made a payment to the finance company and will soon be sending out the VT letter. Can I then cancel my next DD or will that cause problems? I'm worried that if I don't cancel it it will be taken out...

[R0b]

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

Default Car finance help
Ok so I took out car finance in nov 15 and can not afford to keep it anymore as my partner is expecting and the bills just keep mounting up.

What are my options ? am I only liable for half the some ?

Really don't know were to start

Hello,

Have you received a default notice from the lender? Or are you saying that you have missed a payment (or more)?

If you are struggling to keep up with the repayments you could exercise your right to terminate the agreement which would limit your liability to 50% of the total amount payable. If you only took out the finance in November 2015 then I am going to assume you haven't reached 50% yet? That doesn't prevent you from terminating the agreement and coming to an arrangement to make the repayments by instalments until they have been paid off.

As soon as you provide more information, I can assist further.

[lee7]

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

Default Car finance help
Ok so I took out car finance in nov 15 and can not afford to keep it anymore as my partner is expecting and the bills just keep mounting up.

What are my options ? am I only liable for half the some ?

Really don't know were to start

[R0b]

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

[MENTION=99769]adaw[/MENTION],

I've had a look through the contract pages you have uploaded and I agree with Amethyst on what she has said.

As for the insurance, this may be a bit trickier and without seeing the full terms and conditions, I am only able to speculate on whether it is owed or not.

Were there two separate DD coming out of your account, one for the car and one for the insurance or was it one DD with one single payment covering both?

The information you have supplied doesn't say that you must pay the total amount payable under the insurance despite termination of the agreement. If somewhere in the terms says you must pay it regardless of terminating the agreement, that would be the starting position. However, it is arguable that such a term may be considered an unfair one especially if you VT because you are no longer in possession of the car after exercising your right and may be seen as a deterrent/penalty. Equally, there may be an entitlement to a rebate for the remaining months not used less an admin fee - you would need to check whether this payment would be made to you or Citroen.

On the other hand, if the contract is silent on what happens if you terminate early, particularly when you VT, then it is also arguable that the insurance payments would also terminate when the agreement itself terminates, without any further payments necessary. Arguably, this is because when you VT, you are handing the car back and are not in possession but also your liability is limited to 50% of the total amount payable, extending not only to the car but also any additional products included within the agreement.

Before you embark on any route, you might want to make further inquiries and read through your contract to understand what it does and doesn't say. The likelihood is that if you dispute the matter you will more likely than not end up in court whether it is you bringing a claim or whether it is Citroen. If you want to avoid any possible legal proceedings then all I can say is pay the insurance money or come to some agreement to repay in instalments but not before you check the position on any rebate, in case that rebate goes back to Citroen and then you can deduct such rebate from your repayment.

Hope that helps, but any questions feel free to ask.

[Nicad]

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

Hello, just found this site after looking around Google to try and find an answer to my situation regarding VT.

Basically, I took out the car (bought brand new at the time) on a 3 year ford credit agreement.. But my circumstances have now changed, and it looks like I will be taking early retirement, which means I will not be able to afford the monthly payments on this car anymore.. I have paid 1 years worth of payments, and am nowhere near the 50% figure that finance companies require people to reach before VT can be triggered...

My question is, is there any other method of getting them (either Ford, or the finance company) to take the car back now? I have had a conversation with some monkey on the phone at the finance company about this, but they flatly refuse to allow me to VT now.. There solution was for me to sell the car privately and then pay the loan off... I don't want to go down this route as selling cars privately is not that easy imo, and then probably wouldn't get back enough money to pay the loan off anyway... Anyone have any ideas?

Regards

[R0b]

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

Hello,

Apologies for the delay, only briefly looked at your issue [MENTION=99769]adaw[/MENTION] so cannot comment in full (I will later today) but for the purpose of the total amount payable the deposit is included as part of it. A deposit essentially helps to reduce the monthly instalments rather than count towards 50% of the total amount when you choose to VT.

As for the insurance, GAP insurance is commonly added to the total amount payable so unless it is a separate agreement with a separate direct debit or payment method, I can't see how you can be liable.

Like I said, I will take a proper look around lunch time and get back to you on this.

[Amethyst]

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

Let me know when you get the letter confirming it (or not) from the finance co xx

[adaw]

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

That's fantastic news....many thanks for your help - greatly appreciated.

[Amethyst]

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

so the halfway amount is £13k but when you add my £7500 initial payment and my £6912 I am already over...

Yes

That's much clearer - so in your agreement it does say £12993 which is half £25986 ( the total amount payable ) which is correct.

You've paid 24 months ( check on your statements as you may have had a 1/2 month break at the beginning? ) but by my calcs (for what they are worth) you have more than covered your 50% VT.

10094.97+288.42+8103.00=18486.39+£7500=£25986.39 ( just checking and yes now I can read the numbers it does add up fine )

I don't know what the insurance is, payment insurance? that will need paying in full as far as I am aware as its not included in the VT. I don't know how that is worked out from what you have paid - you've paid 24 payments of £15.73 presumably - so will have the other 11 of those plus £442.03 left to pay. I don't believe they can use anything over the 50% on the car side to pay the insurance side, anything paid over the 50% on the car side is lost ( just my understanding of it).

[adaw]

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

ah, but now I see what you're saying....so the halfway amount is £13k but when you add my £7500 initial payment and my £6912 I am already over...

[adaw]

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

It is 50% of the total amount payable and includes the deposit ( or advance payment )

Insurance is the bit on the right hand side £1k total payable? via £15 a month then £442 after 37 months ?

You've been paying £300 a month which is presumably the £15 for that and the £288 for the car. So on the vehicle VT bit you could only use the £288 portion so £6912, then the £7500 advance so still well over the VT amount (by £2k) if you're 24 payments in.

I don't know why the total doesn't add up tho - the final payment of £8k odd takes it £2k over the total payable ( £25274 )

Hang fire till @R0b is about as he's the man in the know - it would help if you can do the full agreement and relevant VT terms though.

When you spoke with them did you make it clear you wanted to VT and hand the car back , not just settle the agreement ?

Many thanks - please see attached - slightly clearer!
I did explain that I wanted to hand the car back and I'm waiting for them to send me a letter with details of how much is outstanding. They said that will take 7-9 days to get to me. My assumption is that I should add the £16,645 to the £1,841 and then half that amount to get the all important figure (which would make it £9243). I have paid £6912 so would need to find another £2300 to get out. That still would take me very close to the end date of the agreement anyway though...?