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

HI Paul,

I suggest you write back and explain that you wish to make a formal complaint, or alternatively provide you with a final decision letter. You will then forward your complaint to the Financial Ombudsman. I may also be worth quoting that they are in breach of their statutory duty under s.99 of the Agreement. Sectin 99(1) specifically states that:

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.

Remind me did you send your letter to terminate? The question you now need to make is to whether terminate the Insurance and Tax now and then fight it out in court or keep it going and then try to claim it back through the financial ombudsman or even go to court yourself to recover any costs due to their unreasonable behaviour.

[PaulT87]

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

Hi Rob yes I sent that letter over a month and a half ago just received that reply today stating that they won't take it back unless it's at halfway and would like to discuss liability and the account at the time of sending the letter I had made a payment the day before so account wasn't in arrears so they don't really have a leg to stand on

[R0b]

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

HI Paul,

I would suggest writing to them and starting a formal complaint. As I said ti is your choice whether you decide to cancel or carry on the insurance and tax. If you do carry it on in the meantime you are better off stating to them that you will expect compensation for the monies being paid in respect of the tax and insurance past the date of termination.

[PaulT87]

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

Cheers rob I have sent an email stating that they are in breach under s99 and I wish to make a formal complaint they have replied saying they have forwarded my email to the management

[JamesH]

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

So I had a call from the company who are coming to inspect the car and also take it away. I have been given a time between 8.30-5.30 on Friday. They have requested the keys, service documents and the registration documents. The car has been valeted and I've had a good look around. There's a few scuffs on the wheels, small scratch on the rear bumber and the 'service vehicle soon' sign on the dash. This is because it's due in 2 weeks. Is there anything I need to do or remember prior to them arriving?

[R0b]

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

Take plenty of photos, and remember I would advise against signing the damage report even if there's nothing on it. It will also be assessed at auction and once they have your signature they can use that argue you have agreed for damages. Don't be pressured into signing something as you are not legally obliged to even if they refuse to take it without a signature, just politely tell the agent that is fine but you will cancel the insurance and tax on the same day and send the V5C off to the DVLA - that will likely make them shift it as they wouldn't want to be liable for any charges.

I would not hand the V5C to them get the agent to sign it and you return it as its your responsibility to notify the DVLA of a change of registered keeper.

[JamesH]

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

Right ok. Just to clarify, So if they refuse to take it minus the signature then tell them that I am going to cancel the tax and insurance there and then and also send off the V5C?

[R0b]

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

Well I would suggest that, they have unreasonably refused to take the vehicle away and you are not required to sign anything so its their choice. Some agents may be under strict instructions not to take it away without a signature.
You call their bluff by saying you'll cancel tax/insurance and liability rests with the lender and see what the agent says.

If they refuse to take it away say that is fine and walk away. You could then write to the lender and say you unreasonably refused to take the vehicle away and so they have 7 days to collect before you cancel the tax/insurance.

OR you could simply sign the report and potentially await the day that they argue you are liable because you signed it. Uphill struggle for you and lots of tennis sending letters back and forth.

It is your choice but as I say to many posters on here, why sign for something which makes you liable when there is no legal requirement to do so?

[B3NNL]

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

I have one that I haven't seen similar so am interested in hearing what those in the know think.

I have two Nissan Leafs which I bought on a two year PCP.
The end date is Feb 2017
It was a cracking deal, £1300 deposit and £150pm for two years for each vehicle.
My job is now taking me to the other side of the country, well out of range for the Leaf so it will just be sat on the drive until next year doing nothing.
I called yesterday to enquire about VT and was informed that if I wanted to terminate before Feb, I would need to pay in excess of £6000.
Their reasoning is that the total finance is for £22,000 and they state I have to have paid £11,000 of it before I can VTC.
The GFV of the vehicle is £18,000 I was under the assumption that this would also be taken into account, therefore well over the 50%. The finance company have said that the value of the vehicle is neither here nor there, its the physical amount of money that has been paid i.e. the deposit and monthly repayments. Is this right? If so, I may as well keep paying the £150pm until Feb for it to sit on the drive rather than pay £6k!
Thanks in advance.
Benn

[HariSeldon]

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

Thanks to the great advice in this thread we had the finance company collect our car yesterday with very little grief following our strongly worded notice of termination.

After checking the car with a fine tooth comb the only point the auction examiner could pick up on was a missing service. The car was just over 2 years old with 24,000 miles on the clock and had only had one service at 15 months and 15,000 miles. He said it should have had two services; each year and/or 10,000 miles and so the finance company may charge £100.

My thoughts would be that as it had not been 10,000 miles or 1 year since the last service then that is not unreasonable and hence would fulfil the "reasonable care of the goods" part of the CCA but I wonder what the legal beagles think of this situation?

[JP77]

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

We are almost at the overall 50% mark of the total amount owed under our HP contract. However, we have a separate issue in that our car is currently off-road and in need of some major repairs. The dealership have already carried out one 'repair' to the car but insist it requires yet more work which we have not yet agreed to.

We have exhausted all avenues which has included a complaint to the finance company. They rejected our complaint stating that the faults are unlikely to have been present at the time of purchase. This is despite their admission that they were unable to inspect the original defective parts as they had already been returned to the manufacturer. They also advised that their inspection of the vehicle was limited. Given the age and mileage on the car we still believe that we should not have to pay for the repairs as the parts which have failed should not fail under normal driving conditions (so we've been advised from different sources).

So, the condition of the bodywork and interior of the car is fine commensurate with its age; what I'd like to understand is the likelihood of being able to VT whilst it still requires engine work. The dealership and finance company have not been able to provide a cause for the breakdown so I do not see why they could say that we have not taken "reasonable care of the goods"

Any input would be appreciated. Thanks

[JP77]

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

In addition to my last thread if it's helpful to anyone - some years ago I VT'd a PCP deal without fully understanding my rights.

On that occasion they came to our home to inspect the car at the guy identified a number of bumps and scrapes that were barely visible. I didn't even know most were there as they were so hard to see. I did sign his paperwork not knowing any better, but I signed to say I did not agree with their assessment. A week or so later I received confirmation in the post from the finance company (BMW Finance) that the agreement had been terminated. At the time I remember thinking that they had just been trying to get more money out of us.

[JP77]

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

B3NNL - this is what I have always understood and I believe the very early posts on this thread confirms this i.e. you can VT at any time, but you would need to pay 50% of the total amount owed.

[bangerdemon]

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

Hi.

My car was collected on 31st March as arranged with the finance company when I VT'd it.

It was collected by Newark Motor Auctions, after I refused to deliver the car to either Bristol or Bath (I live in Plymouth - at least two hours drive from either). I had already been in contact with the finance company to refuse paying the £80 collection fee they demanded for collecting the car, and they wouldn't let me deliver it to anywhere within a reasonable distance of where I live.

The car was subsequently sold on 19th April by the aforementioned Newark Motor Auctions.

Today, I received a letter from the finance company, dated 21st April, which states I owe them "£150 for the cost of repairs to bring the vehicle to a satisfactory standard under section 100 (4) of the Consumer Credit Act 1974". I feel that any damage was either already there, or should be classed as fair wear and tear (the car was 10 years old when it was collected).

They have also added the £80 collection fee to what they say I owe, making a total of £230.

At the bottom of the letter, they state "Please be aware your payment information of the above sums will be reported to Credit Reference Agencies. If you do not make your payments on time this may affect your credit rating."

Any advice on how I should proceed would be greatly appreciated.

[R0b]

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

Hello, something below should suffice

Dear Sir/Madam,

The car was returned in a reasonable condition and as I am sure you can appreciate, the vehicle was circa 10 years old and was therefore returned to you in a reasonable condition given its age. Damage to the vehicle was already sustained prior to entering into the agreement and I must remind you that the onus is on you to prove that the vehicle was in an unreasonable condition. If you believe otherwise, please provide me with an independent expert report confirming that the vehicle was not in a reasonable condition, with full explanations as to why, otherwise, you are not entitled to such sums. The collection fees charges you purport are owed, cannot be claimed under the Consumer Credit Act. Might I suggest you read the relevant sections of the Act in particular, ss.99,100, 173 and 189.

Furthermore, the sums you allege do not fall within the scope of being reported to credit reference agencies and may only be recovered by an order of the court. The sums you are seeking did not form part of the monthly payments under the agreement and so I put you on notice that any attempt to report such alleged debt to credit reference agencies you will then be in breach of Principle 4 of the Data Protection Act 1998. Such breaches I might add, are actionable by way of damages.

Yours faithfully,

[NAME]