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

[J74]

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

Hi all, I am at the halfway payment with my bmw finance agreement, (24 payments made from 47) I asked for VT and they replied stating that for me to do this I would need to pay half of the remaining payments due(another 12). Is this correct or can I hand the car back and not be liable to cover half of the outstanding agreement payments?

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

I have just been going through this again(not looked at it for a while http://www.oft.gov.uk/shared_oft/rep...6BCC0C2C2C39E6

Couple of things strike me firstly, all the consideration regarding the fairness of the VT provisions are centered around the proposition that the cap is based on 50% of the TAP agreement price, there is no facility for tailoring this figure within the agreement other than this. The amount payable is Capped at 50% simple as that.

The idea is that the value of the car is matched throughout its hire period with its forecast depreciation, that way the debtor does not end up with something which is not worth what he stil has to pay under the contract(the cars worth), and the dealer does not end up lousing out should the car come back an he has to re-sell.

When you introduce a millage charge this all changes, a condition can be introduced where the value of the car actually increase and no longer offsets its "natural depreciation", this cannot be what the act intended.

The other point is that even though the paper discusses in length all matters, not once does it mention a millage charge, a friend of mine who works for a government advice agency said that millage has absolutely nothing to do with the requirements of a VT, and I think he is right, it is something tacked on to an agreement and said to be enforceable when a termination is requested, personally I do not think it is.

[brainsdotcom]

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

In that case I would have no hesitation in holding them to the terms(or the missing terms) in the contract, reasonable care only as per section 100.

There is nothing about millage so I would put the to strict proof that A, this even applies to the millage of the vehicle and B, that if it did the millage stated was not reasonable for your usage and for the vehicle in question.

The question of millage charge terms in general on VT's(and there intrinsic legality) is going to be subject of a few threads on a few forums in the coming months.

Thanks Andy - I'll get the letter away early next week and keep you updated on the outcome!

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

Hello guys,

I have read this thread with interest and it has given me the confidence to VT my car. The only thing i am worried about is the excess mileage issue that others are having.
I have had the car 2 years and have payed 50% of the HP value. In those 2 years i have done 25,559 miles. I have tried to read my T & C (i found it very difficult to understand the terminology) and from what i can see it mentions nothing about a limited mileage use. It is a standard HP agreement i have.

Should i be worried about the mileage use or just go for it and VT the car?

In that case I would have no hesitation in holding them to the terms(or the missing terms) in the contract, reasonable care only as per section 100.

There is nothing about millage so I would put the to strict proof that A, this even applies to the millage of the vehicle and B, that if it did the millage stated was not reasonable for your usage and for the vehicle in question.

The question of millage charge terms in general on VT's(and there intrinsic legality) is going to be subject of a few threads on a few forums in the coming months.

[brainsdotcom]

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

Hello guys,

I have read this thread with interest and it has given me the confidence to VT my car. The only thing i am worried about is the excess mileage issue that others are having.
I have had the car 2 years and have payed 50% of the HP value. In those 2 years i have done 25,559 miles. I have tried to read my T & C (i found it very difficult to understand the terminology) and from what i can see it mentions nothing about a limited mileage use. It is a standard HP agreement i have.

Should i be worried about the mileage use or just go for it and VT the car?

[Amethyst]

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

Posts ref Jon0910 post moved to own thread http://www.legalbeagles.info/forums/...629#post432629

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

If it help any, I have just been chatting to an adviser from National debtline, and he agrees with me.

However as said it is your call

[Furryhobnob]

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

Thanks Andy

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

So what should I reply with? Again I really appreciate your swift replies and input

Sorry F I cannot tell you what to put, as said you know my opinion , it is upto you.

If it were me I would state that the charges are unenforceable in common law and also under the requirements CCA, any further demands will result in compliant being made to the FOS.

However as said you must make your own decision.

[Furryhobnob]

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

So what should I reply with? Again I really appreciate your swift replies and input

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

OK it is upto you, personalty would tell them to swivel.

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

There is another argument which I remember someone raised, and got the claim dropped on one occaision.

For a contractual term to be enforceable it must be proportionate, in other words if the car had done less than the contractual amount the credotr should issue a rebate at the same rate as the charge.
If this facility is not also within the contract the term becomes a penalty and unenforceable under common law.

Also there is the unfair terms in consumer contract provisions 1977 section 5, which stated that an un-negotiated term such as this would IMO be unfair and void.

[Furryhobnob]

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

Claire,

Your statement in an e-mail states 'When I signed for the Peugeot it was agreed the mileage was 12,000 miles per year. As I have exceeded this by 1055 miles I will pay the excess of £70.90'

You were incorrect as the mileage you exceeded was 20,514.46 miles. So the balance owed for excess mileage is £1,378.57, as the contract does not state 12,000 miles pa, but 6,000 miles per annum. An error on your part.

' The goods, as long as "reasonable care" has been taken can be returned without further cost once half the total contractual price has been paid', refers to your contractual payments. The excess mileage charges is your end of contract charges.


Regards,

Wayne

This is their response to what you asked me to respond with

[ncf355]

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

Thanks for the PM, FH

I agree with Andy

I'd also reiterate from previous posts that the oFT have given clear indications in the past that any term seeking to override the act is invalid (this of course in addition to the fact the act clearly states this itself)

You appear to have a strong argument so I would imagine they'd be on to a loser if they took this to court

[Furryhobnob]

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

Ok cheers Andy, I'll get her to send what you've put above, and see what they reply with, thanks again