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

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

Hi Mark,

Apologies for the late response.

In terms of cancelling the DD I would wait a couple of days after sending the letter so that they have time to receive it. Make sure you keep proof of postage. I would suggest keeping the insurance for a minimum of 14 days and taxed too as you need to be seen as reasonable, if you don't then they may refuse to pickup and there will be a lengthy battle no doubt.

As you have given 14 days to collect, I would send them a reminder after 7 and put them on notice that you are on holiday for 2 weeks if it not collected by then, you will cancel the insurance and notify the DVLA that the registered keep is now the finance company ad is now their responsibility. Alternatively you could cancel insurance and SORN it instead and arrange collection after you are back.

Keep receipts of valet and polish if you still have them in case they argue, which given that it is GMAC I would expect so, especially the mileage but we shall not worry about that.

I have seen some threads in which GMAC do not respond until the following month when payment is next due so you need to keep on top of this. Try to keep everything in email/letter as evidence if they act unreasonably - Also expect a possible letter from Shoosmiths as I have also become aware they do this straight away rather than contacting you direct regarding the charges.

[Markywdog]

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

Hi Mark,

Apologies for the late response.

In terms of cancelling the DD I would wait a couple of days after sending the letter so that they have time to receive it. Make sure you keep proof of postage. I would suggest keeping the insurance for a minimum of 14 days and taxed too as you need to be seen as reasonable, if you don't then they may refuse to pickup and there will be a lengthy battle no doubt.

As you have given 14 days to collect, I would send them a reminder after 7 and put them on notice that you are on holiday for 2 weeks if it not collected by then, you will cancel the insurance and notify the DVLA that the registered keep is now the finance company ad is now their responsibility. Alternatively you could cancel insurance and SORN it instead and arrange collection after you are back.

Keep receipts of valet and polish if you still have them in case they argue, which given that it is GMAC I would expect so, especially the mileage but we shall not worry about that.

I have seen some threads in which GMAC do not respond until the following month when payment is next due so you need to keep on top of this. Try to keep everything in email/letter as evidence if they act unreasonably - Also expect a possible letter from Shoosmiths as I have also become aware they do this straight away rather than contacting you direct regarding the charges.

Hi Rob

Many thanks for your reply

I contacted GMAC first thing this morning through their online page under "complaints" section saying no one has bother to acknowledge my email ( I've not sent the letter by post only via email) - GMAC called me just now and they are processing the VT. They have cancelled the DD and I've done the same with my bank. I've said Insurance is cancelled and the car secure and I've told them it will be declared as SORN. They say the process now is collection company will contact me (most likely Manheim) to arrange viewing and disposal of the car upon my return from holiday. I mentioned the high mileage but she said that shouldn't be an issue as HP isn't covered by any mileage declaration.
I understand the guy who will come to view the car will assess it and ask me to sign his report - should I sign this ? What is he is picky and notes stone chips and small scratches and tries to bill me for them ( Fair Wear and Tear especially after 67,000 miles )

At the moment it sounds like it should go through OK....

Is there anything I should now be prepared for ?

[R0b]

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

First thing to note is not to trust what GMAC says. All well and good saying the high mileage isn't going to be charged but they've carefully said this over the phone and not in writing which is something they can deny at a later stage.

You are under no obligation to sign and I would strongly suggest not to sign anything - it causes far too many problems later down the line trust me. Manheim will inspect the car according to BVRLA guidelines which is a standard used for commercial fleet and leasing of vehicles, not second hand vehicles for private consumer use. The agent from Manheim may say that they won't take it away unless you sign the documents but I would then counter this by saying that is fine and explain to them that you will notify the DVLA that GMAC is now the registered keeper and park the vehicle on the road as it is no longer your responsibility and liability will fall with them - I think at that point they will just take it off your hands. Don't be bullied or pressured into signing the documents whatever they say, you will regret it and there is no reason to sign something which makes you liable when you are not obliged to do so.

Take plenty of photographs of the vehicle inside and out so you have the evidence you need in the event of a dispute, which is likely to be something at least.

Expect some kind of charges from GMAC or Shoosmiths once the car has been taken away and/or sold at auction - we can deal with that if or when it happens.

In the meantime if you have not read it already, I suggest you take a skim through this link which should give you an idea on your rights -> http://www.legalbeagles.info/forums/...ry-Termination

[Markywdog]

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

First thing to note is not to trust what GMAC says. All well and good saying the high mileage isn't going to be charged but they've carefully said this over the phone and not in writing which is something they can deny at a later stage.

You are under no obligation to sign and I would strongly suggest not to sign anything - it causes far too many problems later down the line trust me. Manheim will inspect the car according to BVRLA guidelines which is a standard used for commercial fleet and leasing of vehicles, not second hand vehicles for private consumer use. The agent from Manheim may say that they won't take it away unless you sign the documents but I would then counter this by saying that is fine and explain to them that you will notify the DVLA that GMAC is now the registered keeper and park the vehicle on the road as it is no longer your responsibility and liability will fall with them - I think at that point they will just take it off your hands. Don't be bullied or pressured into signing the documents whatever they say, you will regret it and there is no reason to sign something which makes you liable when you are not obliged to do so.

Take plenty of photographs of the vehicle inside and out so you have the evidence you need in the event of a dispute, which is likely to be something at least.

Expect some kind of charges from GMAC or Shoosmiths once the car has been taken away and/or sold at auction - we can deal with that if or when it happens.

In the meantime if you have not read it already, I suggest you take a skim through this link which should give you an idea on your rights -> http://www.legalbeagles.info/forums/...ry-Termination

Hi Rob

Thanks again - Your points have been noted and I will stand my ground.
What charges from GMAC or Shoosmiths can I expect - what for and how much ?
The car will be on the driveway when its due to be inspected - if I refused to sign the paperwork and he refused to take it even after pointing out that GMAC are now the legal owners of the vehicle do I just park it on the roadway and leave it ?

I have personal plates on the car so need them changed over at same time as declaring it as SORN. The V5C that I have has my personal plates on it so I need to get that sent to DVLA too ???
Which way round should I do it with the reg number, SORN and V5C ?

[R0b]

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

If you want to keep the plates, that is going to cause some delay so you should have done that before writing to them to VT or you need to notify them and arrange a time to collect once the plates have been changed and the DVLA has updated the details. They will need to send out a new V5C if your private number is on the current one.

Not sure whether you can do that online or over the phone, worth calling the DVLA to find out and how fast the turn around is. Which may be a case of you going on holiday by the time it has been updated and a new V5C sent out.

As for charges, I would expect them to charge you at the very least for any scratches or dents not in accordance with the BVRLA guidelines. If you want to have a look at what those guidelines are see this link where the guide is at the bottom of the page http://www.hitachicapitalvehiclesolu...-wear-and-tear

I would also expect GMAC to charge for the excess mileage too, there will more than likely be a clause within your agreement which says any excess mileage will be charged at a rate of X pence per mile.

If the agent refused to take it away without a signature, then suggest to the agent to contact GMAC first and see what they say. Otherwise before you decide to park it on the road, I would notify GMAC straight away and explain that because the agent was unreasonable and they refused to collect without a signature on GMAC's instructions despite there being no legal obligation to do so, you will not be parking it on the road and absolve yourself of all liability. Give them maybe 72 hours from the date of notification to before you actually park it on the road.

You have to bear in mind if it goes to court (highly unlikely) or if you make a complaint to the Financial Ombudsman, you want to be seen as being as reasonable as you can and show that GMAC is the one who is being unreasonable.

[Lynne]

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

Peter, thank you for this. Please may I get some urgent help? I followed this advice to instigate a VT. The finance company have just phoned, they say the optional balloon payment at the end of the pcp is part of the contract and that, despite me being over the half way mark on the actual 3 years, if I VT, they include the four thousand odd in their calculation and that effecting a VT will therefore cost me fifteen hundred odd quid. I argued with them and said that they cannot charge me on a sum I have not borrowed. I told them that my legal advice was that they would try this tac. My first step is to ask on here whether they are correct? Can they include the balloon payment in their 50% calculation and charge me fifteen hundred quid? I hope someone can help. Thanks in advance

[stevepen]

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

Just about to VT my car. What do I do with the V5 Registration Document? Do I have to send it with the VT letter and fill it in as sold to the finance company?

[julieh12]

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

I had posted this in the welcome section so thought I'd repost here. Please be kind to me about the service.

Vt with motonovo - advice needed

I have had my 55 plate Honda crv with motonovo since May 2014. Since that time I have lost my job but my partner has helped me cover the finance. We have now just split up and I am only just managing the payments. I would like to vt the car but I haven't had a service over the two years. I have borrowed money so I can get a full 71 point service at halfords on Monday. The car was motd on 30th April with two advisories. The drivers window motor I think has gone. I understand motonovo will probably charge for the non service but I'm also a bit wary of the advisories and window. My brother in law could possibly do the window motor but my insurance needs renewed in 14th and I'm unsure if he can do it before then. There are also a couple of scuffs on the bumper. I was wondering how much motonovo will try and shaft me and if anyone has any other ideas how I can get out of this as I will technically be homeless in four weeks also. Thank you

[Kellster]

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

I've had a look through the thread and have taken on board some excellent advice, many thanks for your work against these vultures. I sent off my letter last Monday giving Black Horse 14 days notice as advised and today received my letter.

Just want to double check a few things, they've asked me to deliver car to an auction house 38 miles away or pay collection. I see others had the fee waived after refusing.

I'm right in thinking I don't complete their form but send a letter advising they will have to collect for free? Also it mentions that the goods must be fully insured when collecting, is this true? The car is currently parked in my mum's drive as I had to cancel insurance after being hit with a healthy quote for insuring two cars. We bought a second hand seven seater after finding out were expecting twins!

[HariSeldon]

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

I see others had the fee waived after refusing.

I'm right in thinking I don't complete their form but send a letter advising they will have to collect for free?

Yes, absolutely, use R0b's template and remind them that the Consumer Credit Act prohibits them from levying charges for collection of the vehicle, excess mileage or any other charges so long as reasonable care has been taken of the vehicle.

Also it mentions that the goods must be fully insured when collecting, is this true?

There are two issues here. Firstly unless you have declared the vehicle SORN (i.e. officially told the DVLA that it is being stored off-road) then you have a legal obligation to have insurance on the vehicle even if it is not on a public road.

However from the date of the termination of the HP agreement the vehicle is no longer your concern and so in my opinion if they are collecting on a day after the agreement termination then insurance is for them to sort out.

[Charnewland]

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

Hello all.

I'm new to this forum and really need some expert advise on my current situation.

I have a car which I purchased on finance through MotoNovo via car dealers in November 2014 for 4.5 years.
My financial situation has now changed and am unable to pay my monthly payments..
I asked Motonovo for a settlement figure out of interest, which they quoted to be £5695.81.

My Total amount payable is £11,963.14 which 50% of this is £5981.71. Does this mean I am able to do a Voluntary Termination seeing as my settlement figure is less than the 50% of the TAP?

Apologies if I have this wrong, I do find this very confusing!

I would really appreciate someones help

Thanks!

[Amethyst]

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

[MENTION=71570]R0b[/MENTION]

Wait for the expert - do you have a copy of the agreement as the figures should be spelt out on there. If your total amount payable is £11963.14 then yes if you have paid more than £5981 you should be eligible to VT as you've paid more than 50% of the amount. Can you work out how many months you have paid at £what amount plus any deposit/advance payment you paid ?

Of course you could ask Motonovo how much is owing before you can VT.

[R0b]

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

[MENTION=86562]Kellster[/MENTION], I agree with Hari and if the agreement is terminated the you are not under an obligation to insure the vehicle until collection, the agents will have their own insurance cover and it is the job of the lender to ensure tax has been paid. Of course the lender will tell you something different however and say you need to in accordance with the terms of the agreement.

[MENTION=86567]Charnewland[/MENTION], an early settlement figure wouldn't really give a true representation of how much you have paid because on early settlement you are entitled to a rebate which is a deduction of interest based on the time you settle and the end of the agreement.

The correct approach and simplest is the way Amethyst has stated and that is to work out what your monthly instalments are and multiply by the number of months paid, if it's more than £5,981 then you will have reached that point to VT. Usually if you've passed the halfway point of the term of the contract then you will have more than likely hit the required amount (subject to the type of agreement you have entered into).

[Charnewland]

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

@Charnewland, an early settlement figure wouldn't really give a true representation of how much you have paid because on early settlement you are entitled to a rebate which is a deduction of interest based on the time you settle and the end of the agreement.

The correct approach and simplest is the way Amethyst has stated and that is to work out what your monthly instalments are and multiply by the number of months paid, if it's more than £5,981 then you will have reached that point to VT. Usually if you've passed the halfway point of the term of the contract then you will have more than likely hit the required amount (subject to the type of agreement you have entered into).

Ah ok makes more sense now.
Thanks for that I wasn't 100% sure how the settlement figure was calculated.

I have figured out that I have all in all paid around £4200 which leaves circa £1.5k outstanding to reach the 50% mark.
Where do I stand in this situation? Do you think I could still terminate and maybe pay the outstanding monies in instalments?

[R0b]

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

Ah ok makes more sense now.
Thanks for that I wasn't 100% sure how the settlement figure was calculated.

I have figured out that I have all in all paid around £4200 which leaves circa £1.5k outstanding to reach the 50% mark.
Where do I stand in this situation? Do you think I could still terminate and maybe pay the outstanding monies in instalments?

Who is the lender? You will certainly come up against it as they will say you have to pay the money then terminate the agreement but the law says you can terminate at any time, and if you do terminate, you will become liable for the outstanding amount which is capped at 50%. They will probably threaten to take you to court or put a default on your file etc. but if you are able to pay it, then I wouldn't see any issue. You always have the option of complaining to the Financial Ombudsman but they are not very clued up I'm afraid and simply look at the terms of the agreement and whats fair and reasonable.