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

[LeeHumphries]

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

So what would be my best option? Sorry just never been in this situation! And my head hurts from thinking about it!

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

You have to remember that the cca refers to care of goods, if the goods in questoin depreciate in value or fail during there contractual life it is for the lender to allow for this when making the bargain.
if the car was sold when there was a likelihood that it would fail within the lifetime of its use under the contract, even if treated with reasonable care then the hirer cannot be held responsible, the value of the car should track with the usage under the contrast, this is the nature of the protection given by sections 99 and 100 of the act

[LeeHumphries]

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

I'm pretty sure I still have the report.

The car does run but can't be driven incase more damage occurs!

The car has been serviced prior to my ownership, I've not had to service it yet due to the miles I've done! I've covered 5000miles in 2 years as the rest of the time it has been off the road due to the fault!

cheers

Lee

[LeeHumphries]

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

You can VT it, that is not a problem. The issue of the turbo is more of an issue. I would have thought you'd have been best served taking up the issue of the turbo with the company that fitted it, even if this was the original suppler (just don't mention the VT). Try to argue the issue of being unfit for purpose and not lasting a reasonable length of time.

Once that is resolved and you have a brand new turbo, do the VT immediately while the going is good.

If you VT with the turbo blown, I think you'll be charged the absolute maximum the garage can charge for fitting a new turbo.

I'd be very interested to hear Andy58's views on this one.

Thanks for the reply.

unfortunatley the issue is with the engine of the car not the turbo or how it's been fitted! The mechanic went above and beyond to repair it for me. The likely hood is there is sludge still left somewhere within the engine that cannot be removed therefor may require a new engine to stop it happening in the future!

The mechanic told me to not even bother having it repaired as they are shockingly bad! Even when he purchased the turbo it came with a big warning letter stating that if it was fitted to this type of car then it was more than likely going to fail again!

We looked at getting it done under the turbo warranty but it doesn't cover the same fault so any work would have to be paid by me! I can't afford it again aswell as paying the monthly payments! I'm paying for a car to just sit on my drive! Its so frustrating!

cheers

lee

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

Do you still have the lenders mechanic report which states that this failure is fair wear and tare,
Does the car still run( I know noting about the workings of the internal combustion engine so you will have to forgive my ignorance).
Other than this has the car had regular servicing, and is that recorded ?

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

You can VT it, that is not a problem. The issue of the turbo is more of an issue. I would have thought you'd have been best served taking up the issue of the turbo with the company that fitted it, even if this was the original suppler (just don't mention the VT). Try to argue the issue of being unfit for purpose and not lasting a reasonable length of time.

Once that is resolved and you have a brand new turbo, do the VT immediately while the going is good.

If you VT with the turbo blown, I think you'll be charged the absolute maximum the garage can charge for fitting a new turbo.

I'd be very interested to hear Andy58's views on this one.

[LeeHumphries]

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

Does anyone know where I stand on this!

I bought a car on HP from Moneybarn! 6months (3000 miles) after owning the car the turbo failed (common problem) I paid to have the repairs carried out at a cost of £1500! 2000 miles later the turbo has gone again! I have reached the 50% mark on my payments (no defaults) and would like to VT.

Would I be liable for the repairs?

When the turbo went the first time the finance company sent out a mechanic to inspect it, he wrote in his report that it was not uncommon for a turbo to fail at this age & mileage (2008 53,000 miles) would this suggest fair wear & tear?

Any help will be great. I'm stressing out so much over this and don't know what to do!

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

Hi,

Thanks for your pm - I always reply on forum. It seems you've got what you were after now. The 'legalese' can appear a bit complex, but it's all there in section 100. What you need to understand is when the agreement is terminated, that is it. It is finished, full stop.

They argue the contractual clauses differently, but basically that's it - you have the right to terminate, you write saying when you're going to terminate and that is when it terminates. It's then ended, and all you might owe under legislation are any sums outstanding (say you were £500 short of the 50% figure, you'd owe £500), BUT that doesn't mean you have to pay that £500 there and then to terminate. You can terminate, hand the vehicle back, and if necessary the £500 could become a replayment plan or part of a DMP.

This is a bit which is often misunderstood. Termination can take place at any time.

[Jodelpilot63]

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

My Contract has a section in it called "TerminationRights" it states and amount that would need to be paid and return of the goods and that "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 more".

Seems pretty clear to me having re-read it.

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

http://www.legislation.gov.uk/ukpga/1974/39/section/100

Read Sectioin 99 also

[Jodelpilot63]

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

Is the correct description of the legislation the "Consumer Credits Act 1974"? There seems to be a 2006 version (I assume containing amendments). Also can anyone point me at the section or preciser paragraph that details the position of once 50% of the value of the vehicle has been paid the agreement can be terminated with nothing more to be paid> Search function on the PDF version doesn't seem to locate anything I look for?

P.S All, thanks for the advice and response. Much appreciated.

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

Sorry, posts crossed.

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

It is a PCP but have no idea when taking it out about the mileage so took 10k a year. It does seem a little one side though as if I took 15k (about what its seems I ended up doing) and only drove 12k then I think its "highly" unlikey they give me back 9p per mile so I see this as a penalty as its not even handed in that regards so surely if the mechanism isn't 100% then it unenforceable?

Yes and of course this is one of our arguments, such a term clearly breaches the unfair terms regulations in that it is soley to the benefit if the lender, it is in fact a penalty as you say.

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

It is a PCP but have no idea when taking it out about the mileage so took 10k a year. It does seem a little one side though as if I took 15k (about what its seems I ended up doing) and only drove 12k then I think its "highly" unlikey they give me back 9p per mile so I see this as a penalty as its not even handed in that regards so surely if the mechanism isn't 100% then it unenforceable?

This isn't how it would be looked at. If you did 9K per year, they'd say you should have agreed a lower mileage (and thus lower payments) at the start. Mileage under is therefore disregarded.

Excess mileage is a contractual term, but appears to in conflict with the legislation. Which takes preference? It is always argued on a case by case basis, and that depends a lot on the confidence of the person negotiating. I, like Andy58, would not pay it and argue the toss, others would pay and avoid the battle, others would reach agreements part way between the two.

There is no right or wrong, or not one that has been defined so far as nobody of whom we're aware has taken it all the way to argue the point. As things are at the moment, it's very much what you feel confident negotiating and what suits your circumstances best.

I'm sorry we can't be more definitive, but it's best to go into it knowing the true position.

[Jodelpilot63]

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

It is a PCP but have no idea when taking it out about the mileage so took 10k a year. It does seem a little one side though as if I took 15k (about what its seems I ended up doing) and only drove 12k then I think its "highly" unlikey they give me back 9p per mile so I see this as a penalty as its not even handed in that regards so surely if the mechanism isn't 100% then it unenforceable?