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

[svkl]

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

Hello Rob, the actually wording on the email is:
Yes you can send the letter in to the address below or we can accept this through email.

As long as you can state your reasoning for voluntary termination in the email and you are aware of your liability then through email is fine if that’s better for you.

Thank you

take it it should still be ok to email and liability part does not amount to much

[R0b]

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

Yes send by email is fine, you don't need to give any reasons for VT and they cannot refuse provided you've satisfied the one half rule which you say you have. So if your more comfortable doing it by email then go ahead.

[svkl]

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

Thanks for you help, will mail tonight and let you know how it goes

[svkl]

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

Hi Rob, have just received this reply from them, does this mean i have to pay the balance to get to 50% before i can VT, i thought i should be given a reasonable time scale to pay eg 2-4 weeks

Are you calling to pay the remaining amount over the phone to bring you over a half paid?

We cannot complete the voluntary termination with no further liability until its brought over a half.

Also as stated previously – your car is subject to inspection and you will be advised of this at the time of the collection if you are liable for anything regarding damage.

[R0b]

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

Hi Rob, have just received this reply from them, does this mean i have to pay the balance to get to 50% before i can VT, i thought i should be given a reasonable time scale to pay eg 2-4 weeks

Are you calling to pay the remaining amount over the phone to bring you over a half paid?

We cannot complete the voluntary termination with no further liability until its brought over a half.

Also as stated previously – your car is subject to inspection and you will be advised of this at the time of the collection if you are liable for anything regarding damage.

I've had to double check the law on this and I think i've said something different in a similar situation but after reading it a few times it is quite clear that you you have a right to terminate the agreement at any time. Here is the relevant part:

(1) At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement.

(2)

(2) Termination of an agreement under subsection (1) does not affect any liability under the agreement which has accrued before the termination.

Therefore, this says you have the right to terminate the agreement anytime without reason before the final payment has been made. There is no condition attached which says that before the agreement is terminated then you must bring the account up to the half way point otherwise that would defeat the purpose of having this section in the first place.

s.100 of the act says that you are liable for to pay up to one half of the amount and any sums accrued before the termination of the agreement. It does not state that you must pay one half before the agreement can be terminated.

So from their email they are basically preventing termination of the agreement which is a statutory right given to the consumer and they are in breach. Yes you are liable for any amount to make up the to the halfway stage does not prevent the agreement from being terminated. Regardless of what they think I would tell them that the agreement has been terminated and if they believe it has not please specify the particular section that states before the agreement can be terminated, the debtor must pay one half of the amount (there is none by the way just says liable which is not the same thing). It would be reasonable to make any outstanding payment within 14 days of the agreement being terminated.

If you haven't done so already you could tell them you have given notice and expect the car to be collected within 14 days. Failure to do so you will return the V5C and inform the DVLA that they are now the registered keeper and liability rests with them along with cancelling the tax and insurance.

I would also send them a reminder 7 days later also so that there is no argument that they did not receive any notice.

If you need help with it let me know

[svkl]

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

thanks, do you think they are trying this because they are saying We cannot complete the voluntary termination with no further liability until its brought over a half . So from your reply i will have further liability for outstanding balance to take it to 50%, meaning it does not need to be paid upfront, i can still VT with the further liability,they are saying i should pay the balance up front so i do not have any further liability?

[R0b]

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

If you terminate the agreement earlier than the 50% mark, you are liable for the remaining amount which brings it up to that mark. If you pay now or have already paid up to the 50% mark then there is nothing further to pay and you are not liable, subject to the car being in a reasonable condition which any damages can only be claimed by an order of the court.

[svkl]

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

i will reply back telling them the agreement has been terminated from today but with the understating that there will be further liability for the outstanding balance to take it to 50%

[R0b]

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

* Which you will pay within the next 14 days, ask for them to confirm the amount outstanding to bring the total amount up to the 50% mark.

[svkl]

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

thanks, have just replied to them quoting 14 days, will let you know what happens next, thanks again

[svkl]

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

Hi Rob, just had their reply

We are aware you want to terminate the agreement – the account needs to be brought to a half paid before the completion can commence as if it was done today – you would be voluntary surrendering the vehicle and then you may be liable for more as when the vehicle is sold at auction this amount comes of the outstanding balance on the agreement and that’s the amount you would be liable for.

The amount to bring over a half is £****.** – which needs to be paid before we collect the vehicle.

[R0b]

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

Could you possibly make a new thread on this so that we can keep your posts in one place as a lot of people post questions in this one and may get overlooked.
[MENTION=6]Amethyst[/MENTION], is it possible to move svkl's posts if he creates a thread?

[svkl]

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

Hi, think i have created a new thread called 1:Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974


would you be able to check to see if you can see it, thanks

[BULLDOGGY]

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

Just a positive note on vt ing a car with GMAC I sent the second letter listed on post one of this thread and GMAC organised a collection, a thoroughly nice chap from Manheim came and inspected the car on Saturday, advised nothing to pay for any wear and tear issues signed the v5 told me what to fill in and took the car away. Hopefully that's it done and dusted. Concerned however that we had gap on the car although it was not listed separately on the finance document, only the price for the car, the settlement figure on the agreement was 50% of this price. I think the dealer just added the gap to the purchase price. I think that as we have paid one more payment than the 50% I can argue that there is nothing more to pay so should be completed.

[bangerdemon]

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

Hi,

I have been following this thread for a while, and found it most helpful. However, I have just sent a letter to Advantage Finance stating that I wish to VT my agreement on the 31st March. I received a letter from them today stating that the car MUST be returned to them within 21 days of their letter (dated 9th March). This would mean the agreement would terminate on the 30th.

They also gave me a number to call to obtain details of their nearest agent to me. I was told that would be Bath!!!! I live in Plymouth. The letter then goes on to say that "alternatively, we can arrange for the goods to be collected from your address. An upfront fee of £80.00 will be payable for this."

I have told them they will have to collect the car, because Bath is too far away for it to be classed as within a reasonable distance. I was then told that the £80 fee stands, and that it would be added to the outstanding balance of the extra insurance that I took out. I told him that I am willing to pay the £66.50 for the insurances, but refuse to pay for them to collect the car.

How do I get it through to them that they cannot charge a fee for collecting their vehicle?

Any advice would be greatly appreciated.