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

Who is the lender? Here's a breakdown below and have highlighted the key words.

section 173
(1)A term contained in a regulated agreement or linked transaction, or in any other agreement relating to an actual or prospective regulated agreement or linked transaction, is void if, and to the extent that, it is inconsistent with a provision for the protection of the debtor or hirer or his relative or any surety contained in this Act or in any regulation made under this Act.

(2)

Where a provision specifies the duty or liability of the debtor or hirer or his relative or any surety in certain circumstances, a term is inconsistent with that provision if it purports to impose, directly or indirectly, an additional duty or liability on him in those circumstances.

section 100 limits liability to 50% of the total amount payable. The definition of total amount payable means the following:

total sum payable by the debtor under a hire-purchase agreement or a conditional sale agreement, including any sum payable on the exercise of an option to purchase, but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement

In plain English, what this means is that your liability is restricted to 50% of the total price payable. The contractual term for paying the collection fee under the agreement is inconsistent with s100 and by way of s173, it is void and unenforceable against you.

Does that make any more sense?

[Vjparry]

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

Yes thanks

[Bluearron]

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

Hi,

Thanks for all the Info, really useful, I do however have a question.

I VT'd my car roughly 3 months ago, having paid well over the the 50% required, and today received stating I owe a months payment.

Apparently, they received and logged my VT paperwork 3 days after my March payment date, having already cancelled my Direct Debit at the time of signing the paperwork, they didn't receive the March payment, which they are chasing for. I posted the paperwork well in advance of the date, however it appears the paperwork was sat on for 3days at their end.

Personally, I don't believe I am Liable for the March payment, but I wanted a second opinion?

Thanks

[R0b]

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

If you have given them plenty of notice in advance to terminate and they decided not to process your termination until after the next due payment that is entirely their choice but that doesn't mean you have to pay them for that month.

I would tell them where to go, just make sure you hold onto that receipt which proves the time of delivery, even make a couple of copies or take a photograph of it in case you lose it.

I would suggest a letter to hat effect telling them you owe nothing.

[Henti]

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

Hi Rob

Just reading your sticky, hope you dont mind me pointing something out but point one is wrong mate.

It says taht a debtor has the right to terminate after they have paid 50% of the total price. It should read, can terminate without any further sums being due etc.

A debtor can terminate an agreement at any time.

99Right to terminate hire-purchase etc. agreements.

(1)

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

Hope you dnt mind me mentioning it.

[R0b]

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

Hi Henti,

You are right and this was raised in another post and thought I'd corrected it, i'll amend it now thank you

[Booberrie]

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

In regards to the amount due if you're terminating early, say half the agreement amount, does this need to be paid in one lump or can it be done in instalments? I can afford to fork out £8.5k in one go otherwise I would be paying my finance off!!

Help appreciated

Thanks,

Boo

[NorthwestKev]

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

Can anybody advise me regarding the servicing responsibilities?

If I'm right in thinking as long as I've paid 50% of my credit and the car is returned in a looked after state there is nothing more to pay even if I've exceeded the mileage? But what if I haven't had the car serviced as agreed?

Thanks in advance

[R0b]

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

It depends, you could argue that the car is in a reasonable condition given its age and I guess there is no requirement other than perhaps in your agreement to service the car but you would need proof yourself that it is in a reasonable condition in case it is raised by the other side. For example, if you don't service your car for 3 years and you are running extremely low on oil and this causes problems with the engine that is likely to cause further damage then that is a result of you and the potential argument that the car is not in a reasonable condition as the likelihood is that the car will need repairing earlier than expected.

Of course they would need an expert to prove that but can still pose a problem.

decent arguments that prove servicing has been carried out in or around expected timescales will help to disprove that the car is not in an unreasonable state and could be difficult for them to argue otherwise.

[billydane9]

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

Hi

I have recently VT'd my 6 year old Audi A6. The finance company was Northridge and the vehicle was returned to Manheim.

2 week after returning the vehicle, I have had a letter requesting £290 due to rippled finishes on the bumpers. The letter enclosed photographs, which actually do not show a lot. I took plenty of photographs when I returned the vehicle. The letter also confirmed that the vehicle had been sold.

I'd had the front and rear bumpers repaired prior to the vehicle being returned by a mobile bumper repair company.

The vehicle was in very good condition for a 6 year old car.

My intention is to write back refusing to pay the amount, as I'd kept the vehicle in good repair and condition as required, and to point out that BVLRA guidelines are not applicable to consumer credit agreements.

Would this be the most appropriate course of action for me to take?

Thanks

[R0b]

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

Hi Billy,

I don't believe they are a member of BVRLA but yes you can dispute that the BVRLA guidelines are not applicable and apply a higher standard than reasonable as set out in the CCA.

If you have had the bumper done and receipts of this and the bumper doesn't look like a botched job then I think you can probably argue that also.

Have you asked them to provide evidence that the car was actually repaired prior to it being sold?

[billydane9]

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

Thanks Rob

I haven't asked yet for evidence the car was repaired prior to being sold, but will do so. All they have sent me is a condition report from Manheim with photos and costs against the photos. The condition report was dated 10th June, 2 days after the car was returned, and they wrote to me on 28th June. I would be surprised if the car was repaired, it actually didn't need to be anyway.

[R0b]

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

If you have taken plenty of photos that shows a reasonable condition then that should be enough. You can put all of this in a letter and state that it is a formal complaint and you expect them to give their full reasons.

They will likely not uphold your complaint and then you have the option of going to the Ombudsman.

[PaulT87]

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

Rob quick question finally had some breakthrough with finance company they allowed me to vt eventually however quick question there sending a 3rd party to collect the vehicle at 1pm this afternoon I have took photos do I need to sign anything when they pick up the car?

[R0b]

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

Hi Paul,

You are not legally obliged to sign anything, whether you choose to or not is entirely your choice. Usually the wording of the paperwork states that you agree to pay for damages when the final report has been concluded or another inspection has taken place which essentially means you agree to pay whatever damages and potentially waive your rights.

Personally, I would suggest not to sign anything, but that is up to you.