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

[labman]

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

You cannot VT an unregulated agreement, sorry.

[gravytrain]

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

Peter,
Thank you for this thread!!!
I'm in a situation where I can no longer afford my car. I read your thread, called Black Horse finance to tell them I'd like to consider VT.
(I also remember the car dealer telling me that at ANY time payments were out of reach that I could hand the car back without achieving adverse credit.)
To my horror Black Horse said I don't qualify for VT as I have an "unregulated agreement"! They could only explain the difference between this type and a "regulated" agreement in as much that it pertained to the sum on the HP agreement, even though I'm almost up to the Fifty percent mark.
Is it correct that I cannot have a VT?

Regards
Bighag

By unregulated I presume they mean the agreement was entered into before 2008 and over 25K, or that the vehicle was used for business purposes ?

[gravytrain]

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

Keeping in mind that dealers do occasionally tell porkies, in order to get out of a VT

[dingobingo]

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

HELP.

When I read the OP my heart lifted. My finance company have said that I can't do a VT as I had defaulted on a £22 payment in 2010. I read the rest of this thread and can someone clafify whether I have lost the right to a VT if I missed a default deadline? How can they cancel the agreement and continue to reap the benefits (monthly payments) when I've lost mine?

They're saying I can do a voluntary surrender instead which means I have to pay the difference between the auction revenue and the amount left to pay back.

Any advice guys n gals?

Thank you.

P.S Also the clause in their agreement that gives them the right to terminate mentions four other clauses, where if any are broken they can terminate if they wish. They refer to clause 1 in their default notice but clause 1 only mentions failure to pay INITIAL payments and makes no reference to regular monthly payments,

[gravytrain]

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

HI
If they have issued a default notice under section 87 of the act and the time given for remedy(14 days) has passed they can terminate the agreement, and you loose the right to VT, unfortunately. If they haven't issued this statutory notice you can terminate it yourself under section 99.

You can still VT if you are within this period, but you have to ensure you have a cast iron paper trail, with dates letters etc. because they will try and say that you had not terminated the agreement.

[gravytrain]

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

HI Just re read your post.
Am I right in thinking that they are referring to one missed payment in 2010 and you have kept up your payments since ?

If so this would not count as a default under the agreement as far as the CCA is concerned, can I ask how much you have paid off the agreement (including any deposit) and how much the total payable on it was.

[dingobingo]

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

Hi,

Yes, they're referring to a missed payment of £22 in May 2010. They said they then wrote to be saying they'd cancelled the agreement but would allow me to keep possession of the car and they'll continue to take payments. My monthly payments are £300 so they've received around £9600 since then.

Total borrowed £10,700
£1000 deposit
Total payable over five years: £17,817
Amount paid when default occurred: £3490
Total paid currently: £11,700

[gravytrain]

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

No, no no
Ha ha , it doesn't work like that unfortunately.

Send them the VT letter earlier in the thread, all you owe are any missed payments up-to date. Recorded delivery two weeks notice and you require somewhere to leave the vehicle , unless they want to collect, keep a copy of ALL correspondence.

If they are saying that they terminated the agreement upon default for £22 then you want to see copies of the section 86 notice of arrears, and the section 87 notice and the termination notice. They cannot terminate under a contractual term and expect you to pay all the contractual charges.

If they still say you cant VT tell them you are prepared to argue the point in court. But make sure you get the written proof of your VT off.

[gravytrain]

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

Oh you may have to pay the £22 if it brought forward arrears on the account.

[gravytrain]

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

As a matter of interest , how did it come about that you were £22 adrift seems like an oddly small amount on a payment of £300.

[dingobingo]

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

I have sent the VT template from this thread three times. First time the address on their agreement is no longer in use so it bounced. Second and third got through though.

I moved house and picked up the mail irregularly (still owned old address) so it's possible they sent me those notices. But are you saying that even if they did send those docs and did cancel the agreement they can't continue to collect the monthly payment?

[gravytrain]

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

I am saying that they cannot terminate the agreement on a missed payment of £22, in any case if you had made the next contractual payment the £22 would have been paid , so you would just have £22 continual arrears.

In order to terminate an agreement under the CCA they have to send you first notice of arrears within two moths of the default and then give you 14 says to remedy, anything you pay during this period would remedy the default.
I suspect that this is a device they are attempting to use to get around the VT issue, but it would not wash in court, in order for them to terminate on default you would have had to commit a repudiatory(severe) breach of contract, £22 arrears would not qualify.

You need to chase up the VT you have sent , did you keep copies or send them recorded ? remind them that they have had a termination notice under section 99 and enclose a copy , ask for then to either collect the vehicle or arrange a local drop off point

[dingobingo]

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

Hi,

They say they have sent me the required notices and payment was not made within the default deadline thus they then cancelled the agreement and wrote to me. They're going to send me copies of the letters they sent me. They acknowledge receipt of my VT request and state I can't as I have lost the right to do so.

I tried to chase up the VT I sent but they're 100% sure I have no right to one now.

[dingobingo]

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

Annoyingly the default notice deadline was 3rd May 2010. I apparently called them and made payment on the 5th.

[gravytrain]

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

If your monthly payments were £300 you were not even one month in arrears they cannot terminate your agreement for £22.