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

[bangerdemon]

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]

Thanks Rob, have sent it by email, and will see what response I get.

[bangerdemon]

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

Well, This is the reply I got from them!!! (including a vehicle condition report which I have no idea as to how to upload to the forum)

"In reference to your email regarding your voluntary termination the points of which have been noted.

We are aware the vehicle is a 10 year old and this is taken into account when the inspection is carried out. However the refurbishment required to the vehicle are not commensurate with the age of the vehicle

The original voluntary termination letter which you received states, “Should the goods not be in satisfactory condition when returned to us you will be required to pay to us the amount required to return the goods to a satisfactory condition. These points were also explained in a recorded call before the vehicle was handed back and we also advised to obtain an independent report from a VAT registered garage.

Our definition of good repair and condition is that the vehicle must:
I. Have a current MOT certificate and require little or no work for the issue of a
new certificate
II. Must require minimal refurbishment to be ready for retail resale
III. Be free from mechanical or body damage, and in a condition commensurate
with its age / mileage
IV. Be in its original paintwork, trim and specification (as at the time of purchase)

As you have raised section 99 of the Consumer Credit Act please also refer to section 100 of the consumer credit act (4) If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have the effect accordingly.


Please refer to section 100 of the consumer credit act (4) If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have the effect accordingly.

Should you require any further assistance please contact directly on "

How should I proceed?

Alan

http://i1060.photobucket.com/albums/...psy1gc2189.jpg
http://i1060.photobucket.com/albums/...psp2dkessv.jpg
http://i1060.photobucket.com/albums/...pspdmd2yet.jpg

[R0b]

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

They need to prove at the time that the damage to the vehicle was not there when you purchased it which I am guessing that they cant unless they carried out an initial inspection prior to you purchasing it? Otherwise you can simply maintain the damage was there already at the time of purchase and it is up to them to prove that it was not. s.100 is not a free pass to claim damages beyond reasonable. The car is 10 years old and is expected to have some damage to it, but as long as you have maintained it whilst in your possession it is up to them to provide the evidence - only way they can enforce that amount is through a court order as it is nothing more than an alleged debt, until a court agrees with them it then becomes a recognised debt hence why they cannot report you to the credit reference agencies because it is not a recognised debt unlike your monthly payments.

Should the goods not be in satisfactory condition when returned to us you will be required to pay to us the amount required to return the goods to a satisfactory condition.

Satisfactory condition is a term used by them but is not the term used by the consumer credit act which is reasonable condition. They are not judge, jury and executioner on whether or not they are owed damages for repairs.

II. Must require minimal refurbishment to be ready for retail resale

The car was sold at auction wasn't it? So why are they now claiming it must be minimal refurbishment for retail sale?

You want proof that the sums were actually paid for, if they did not pay for them then they cannot claim to be owed anything as they have not mitigated their loss. The second point to note is that given the age/mileage of the car, is the vehicle likely to fetch more at auction if it did have the repairs done? not likely.

All smoke and mirrors I believe, less the collection charges you allegedly owe £150 for the repairs to the vehicle. I know where I would tell them where to go and see them in court but it is of course up to you. If they would want any remote chance of winning this then they would need to hire an expensive lawyer/barrister but for the sake of £150, does not make commercial sense. They can instruct debt collectors all they want you could just ignore them because it is not a recognised debt until it goes to court they get judgment. Round and round in circles really.

Your alternative is to complain to the Financial Ombudsman, ask them for a final decision and then make a complaint, they are hit and miss but they might be a bit more reasonable than the lender. You are not obliged to accept the Ombudsman's decision but if you do then it is binding on both parties. If you refuse to accept they still need to take you to court.

[gordonmw]

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

I have a HP contract due to terminate October 25 2016. As a contractor I now find myself working away from home between now and the end of October 2016. I have contacted the finance company and been advised that if I voluntary terminate now I will have a mark on my credit score for the next 6 years and it could affect any future credit offered. Is this true please? I have paid 30 monthly payments on time and don't see why I should be penalised in such a way?

[R0b]

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

Hi Gordon, what is the finance company called? No your credit score will not be affected for the next 6 years you are legally entitled to terminate and giving misleading information about the law is a claim in itself. So long as you have paid 50% you do not need to pay anymore. If you want more information click on the link below in my signature regarding voluntary termination

[gordonmw]

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

Hi Gordon, what is the finance company called? No your credit score will not be affected for the next 6 years you are legally entitled to terminate and giving misleading information about the law is a claim in itself. So long as you have paid 50% you do not need to pay anymore. If you want more information click on the link below in my signature regarding voluntary termination

Hi Rob,

It is Mercedes Benz Finance. I took out the agreement on a 36 month plan in October 2013 for a new car. I've paid all installments on time and only have 6 payments left to make. As I said, I am now working away for the next 6 months (Monday-Friday) so the car will be just sat on my drive for most of the week and not worth me paying £400 a month for.

[R0b]

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

Don't suppose they told you over the phone it will affect your credit rating as opposed to email? Either way they are wrong on that point so you can VT at any time, just be aware they may charge you excess mileage and charges for unreasonable damage if any. All of this is explained in the guide I wrote so may be worth a read before you VT so you are aware of any underhand tactics they may use.

[Jellid]

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

Hi I'm new to the thread and would greatly appreciate some help.

I called Peugeot to request a VT and they wrote to me saying that I need to pay £724.70 (451.29) VT liability and (273.41) early settlement of Gap Insurance.

Which I should pay into their account or send a cheque and sign a form to send back to them confirming I want the VT.

I don't know how to respond as the form they want me to sign has "I may have to pay an additional sim in respect of any damage to the ge hole or any excess mileage charge. I will be contacted separately by your agent. RMS Recievables regarding this."

The only damage to my car is a slight dent on the front passenger side door where someone has parked too close to and opened the door which hit my car and also some scratches to the alloys.

The car is just over 2 yrs old and the mileage 8005

As I don't want to sign anything they have sent how do I respond?

[R0b]

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

Hi Jellid, see this link http://www.legalbeagles.info/forums/...ry-Termination

[conorg1991]

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

Hi all, I'm new to this forum
I have been searching endlessly for a solution to hand my car back to the finance company under the CCA 1974. I have paid 1/3 of the car off to date and would love to get rid of it as I've nothing but problems since the day I purchased it.

I emailed citreon finance and they replied saying I have to pay 50% of Total Amount Payable if I wanted to hand it back. I was just wondering if anyone knew if this was true or if there was anything under the CCA that would mean I could hand it back if I've paid over 1/3. I'd love to get rid ASAP.

Thanks,
C

[R0b]

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

You can terminate the agreement at any time under s.99 of the CCA but you will still owe them 50% of the total amount payable so they are correct in that sense. If you have had problems with it since day one, what was the purpose of keeping the car, shouldn't you have thought about returning it?

[conorg1991]

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

So the 50% I still owe them, would that just be put against my name and on my credit score?
I purchased the car from arnold clark and tried returning it on many occasions, but was not successful.

Thanks,
C

You can terminate the agreement at any time under s.99 of the CCA but you will still owe them 50% of the total amount payable so they are correct in that sense. If you have had problems with it since day one, what was the purpose of keeping the car, shouldn't you have thought about returning it?

[R0b]

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

Well no, they may mark your report as saying you VT'd but the outstanding balance will become a debt, which they can enforce by going to court and obtaining a judgment against you, resulting in a CCJ on your credit report for the next 6 years. It means you will find it difficult to obtain credit such as a mortgage.

[bangerdemon]

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

They need to prove at the time that the damage to the vehicle was not there when you purchased it which I am guessing that they cant unless they carried out an initial inspection prior to you purchasing it? Otherwise you can simply maintain the damage was there already at the time of purchase and it is up to them to prove that it was not. s.100 is not a free pass to claim damages beyond reasonable. The car is 10 years old and is expected to have some damage to it, but as long as you have maintained it whilst in your possession it is up to them to provide the evidence - only way they can enforce that amount is through a court order as it is nothing more than an alleged debt, until a court agrees with them it then becomes a recognised debt hence why they cannot report you to the credit reference agencies because it is not a recognised debt unlike your monthly payments.


Satisfactory condition is a term used by them but is not the term used by the consumer credit act which is reasonable condition. They are not judge, jury and executioner on whether or not they are owed damages for repairs.


The car was sold at auction wasn't it? So why are they now claiming it must be minimal refurbishment for retail sale?

You want proof that the sums were actually paid for, if they did not pay for them then they cannot claim to be owed anything as they have not mitigated their loss. The second point to note is that given the age/mileage of the car, is the vehicle likely to fetch more at auction if it did have the repairs done? not likely.

All smoke and mirrors I believe, less the collection charges you allegedly owe £150 for the repairs to the vehicle. I know where I would tell them where to go and see them in court but it is of course up to you. If they would want any remote chance of winning this then they would need to hire an expensive lawyer/barrister but for the sake of £150, does not make commercial sense. They can instruct debt collectors all they want you could just ignore them because it is not a recognised debt until it goes to court they get judgment. Round and round in circles really.

Your alternative is to complain to the Financial Ombudsman, ask them for a final decision and then make a complaint, they are hit and miss but they might be a bit more reasonable than the lender. You are not obliged to accept the Ombudsman's decision but if you do then it is binding on both parties. If you refuse to accept they still need to take you to court.

Hi Rob,

After receiving a phone call earlier in the week, where I continued to dispute owing any money to the finance company, even after being told it was negotiable, I have today received the following letter from them

"Despite our numerous attempts to remedy the arrears on the above numbered account, I am disappointed that we have not succeeded in resolving this matter amicably.

Due to a lack of co-operation on your part, we may have little alternative than to recover monies due to us via County Court Proceedings.

Unless we hear from you in the next seven days it is likely that we will instruct a claim against you in the County Court to obtain Judgement for the full value of debt outstanding. Your outstanding balance is £230.00, although additional charges for legal costs may also be applied.

If at this point you still fail to make payments under the Judgement Order, we may also apply to the Court for an Attachment of Earnings Order. This may result in the deduction of regular amounts directly from your wage or salary until the judgement debt has been satisfied.

If there is a genuine financial problem we will endeavour to assist you, however it is essential you contact this office on the number below so that we may prevent any unnecessary legal action and additional charges.

We look forward to your urgent response."

I still have no intention of paying, because I still believe the damage is fair wear and tear on a ten year old car, but was wondering if it is worth me considering a counterclaim if I am taken to court.

The reason I ask is because the day after I collected the car from the dealer, it turned out that it had a faulty gearbox. The finance company flatly refused me taking the car back to the dealer for a refund, saying that I had to give them a chance to fix the car. Well, in the first two months of owning the car, it was at the dealer's mechanic for a month. Then, after about 10 months of ownership, I had to pay almost £1600 to get the gearbox rebuilt, and the car was off the road for another month, so was wondering if it would be worth trying to counterclaim for the cost of the rebuild, two months payments to the finance company, two months tax and two months insurance seeing as I had no use of the car for the two months.

Your advice would be greatly appreciated.

Alan

[Markywdog]

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

Hello and Good Morning.

I have just paid the 30th payment of my 60month HP. I have drafted the letter from page 1 and I am just about to email it to the Finance Company but I have some questions I wish to have answered first :
1. Upon writing the letter and emailing am I legally allowed to cancel the Direct Debit with my Bank ?
2. Can I also cancel the insurance for the vehicle and declare it as SORN ?
3. I've given them 14 days to respond to the VT Letter and to arrange collection but from 15th day I'm on holiday for 2 weeks so they wont be able to collect until I return (Could this be a problem?)
4. Could I get the car transported to the Dealership where I purchased the car from and make them visually inspect it and take it until the Finance Company pick it up (from them) ?

I have had the car professionally valeted (inc 2 stage machine polish) but I think they my fight back as the car has just over 67,000 miles on the ODM in 30months

I have a Vauxhall Astra and the HP was done through GMAC.

Many thanks in advance, Mark