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

[marshall_1987]

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

Hi Rob

I've been reading through this thread and we've just recently actioned a VT (letter sent on 10 March) - we've made our final payment today, phoned the finance company and they've now stated because we have a private registration on the car they cannot accept the car back until the orginal plates are on the vehicle, thats all fine but we've had an issue with transfering the plate which the DVLA are now saying they need investigate and may take a while. The finance company are now saying we will be liable to continue payments until the plate is off the vehicle (our next payment is due on the 21st of this month). We are more than happy to part with the registration plate so not keeping it isn't a problem. Any advice is greatly appreciated.

thanks

[R0b]

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

Why do they need the original plates on the vehicle if they are not retaining it? I suppose it would come down to whether or not it states in your terms and conditions that the originals must be put back onto the vehicle. If not, then they can't have any excuse to refuse in collecting the vehicle. Equally, I cannot see any substantial reason as to why the original plates must be on the vehicle as the car will be sold at auction within a month.

It sounds like they are trying to get as much money out of you as possible.

I have never come across this situation before but when you terminate, the consumer credit act does say that you are not liable for any breaches for the terms of the agreement. So I would probably argue the that the original plates are irrelevant as they are not retaining it, there is no loss and in any event your liability is restricted.

[marshall_1987]

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

Thanks Rob, i'll get back in touch. I can't see anything in the documentation/T&C's we were issued with relating to the registration plate. I'll ask them were in this was stated in our agreement and see what they say. Will let you know. Thanks again!

[marshall_1987]

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

Just heard back from them after they had been away checking for a while.... They are now stating all they need is a letter from us confirming we are happy to terminate with the registration on the car. Many thanks Rob, great help as usual.

[R0b]

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

Glad its sorted

[PaulT87]

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

Hi there I'm looking for a bit help I'm looking to vt my car it was financed through a company called the car finance company I'm only 7 months into a 36 month agreement I know u have to pay 50% only thing is I can't afford to pay the shortfall of around £1800 any help would be grateful

[joepark4]

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

Hi ROb,

Thanks for all your help and advice! Where in the consumer credit act does it mention that they cannot charge you for collecting the vehicle? The finance company seem adamant that they will charge a collection fee. Thanks in advance

[BeanCounterBert]

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

Evening (morning - wait what!?) everybody,

I have spent more hours than I am willing to disclose reading this thread from start to (almost) finish, inspired and ready to start my own VT.

I'll keep as to the point as possible, but the car has turned out to be cr*p and plagued with faults and seriously won't see out it's four year HP (besides I'm no longer using it), so back it goes. Basically, for want of not trying to repeat, but collate, I would like to summarise my intention and also a suggestion and see if any of the more experienced beagles would agree or offer any advice?

So:

- Payments due on 1st of each month. Will be issuing VT notice to MotoNovo (MN) on 04/04 assuming my final instalment was that paid on 01/04. VT effective from 18/04.
- Would still owe £833 to make 50% of agreement. Happy to pay this, although will await confirmation of VT from MN to arrange payment of balance.
- Will be cancelling insurance and tax on car effective from 18/04 as no longer my responsibility. Letter to MN to confirm, if no collection or reasonable drop off arrangement made and threaten storage charges.
- When collection/d-o arranged, photograph car with date proof of any wear/tear (had paint touch ups before I bought, although no proof. H'ever, all A-road/m'way miles so stone chips and small paint cracks on plastics, all small and I would deem reasonable W&T for a 9 year old car).
- Condition report: On the understanding that MN is likely to just auction the car without any repair, could I refuse to sign liability for any wear to the car whatsoever unless the car is actually repaired and invoices/receipts are submitted? Instead of signing and then waiting to see if they actually repair, after agreeing to pay an amt? Then I can dispute any excessive invoices or damage I do not agree to etc. I will also be monitoring the car on any auction house website for a condition report or sale.
- Hand over keys and docs to whoever, give them the green slip/whichever slip is relevant, send off my part to transfer ownership.
- Spend a few weeks arguing the 'excess mileage charge' (12k per annum exp. done 21k in 18 months so 3k in excess). Car only has 62k on clock for 9 years old. Hardly arguable that the miniscule excess would adversely affect car value IMO. That's before mentioning that it is not actually an enforceable charge under statute and that any resulting threat of default is also toss as there is no agreement to default on as it was terminated on 18/04.
- Wait for them to give in on it all, possibly agree an amicable fee if I do find a bit of unreasonable wear, then party that that poorly built heap of bob is out of my life and I am again a fair sum richer each month.

Would it be fair to say that that is the expected process? And would it also be reasonable for me to act as I have suggested with regards to the condition report?

Looking forward to reading comments!

Regards
BCB

[R0b]

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

Hi BCB,
I'll respond in full later but to answer in short, yes that is probably what to expect

[BeanCounterBert]

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

Hi BCB,
I'll respond in full later but to answer in short, yes that is probably what to expect

Champion. Cheers R0b.

BCB

[R0b]

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

Champion. Cheers R0b.

BCB

Not sure if you have read it yet, but I have created a more up to date guide on VT here http://www.legalbeagles.info/forums/showthread.php?77612-A-Comprehensive-Guide-to-Voluntary-Termination
Still a work in progress but the common issues are there and might be worth a read

[PaulT87]

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

Rob is there any joy with mine I'm not sure what to do thanks

[BeanCounterBert]

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

Not sure if you have read it yet, but I have created a more up to date guide on VT here http://www.legalbeagles.info/forums/showthread.php?77612-A-Comprehensive-Guide-to-Voluntary-Termination
Still a work in progress but the common issues are there and might be worth a read

I hadn't read it until now, no. That is, though, a fantastic guide you have written.

I'd certainly recommend others read it going forward!

I would assume I'm now suitably armed anyway, R0b, so thanks a lot; I think every scenario has been covered.

Cheers again
BCB

[R0b]

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

Hi Paul, I think you have already answered your own question. VT does not get you out of any liability in respect of the agreement. If you VT you will be required to pay the outstanding balance up to 50% if you do not then it fill fall as a debt which could result in a CCJ unless you agree to a payment plan. If you default on the agreement you will be liable for the full outstanding balance, with a default likely to be on your credit file and potentially a CCJ as well.

You could ask to see if they can give you a payment holiday which is a couple of months grace although the agreement is extended by the extra months you don't pay.

[PaulT87]

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

I thought as much but if I vt the car now would I only be liable for the 50% Mark or the full outstanding amount? And what letter would I need to send