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

[trickygj]

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

Hi andy58

It is hire contract for a small new van. I simply have hired the vehicle for 24 months and then return it. It obviously has a mileage limit etc, I can let you see the agreement if you want, no problem.

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

Hi new to this site and I have been reading this thread with interest.

I am nearly half way through a 24 month contract hire (Hire Agreement Regulated by the CCA 1974)and have paid including the initial larger payment over 50% of the contract value. The monthly re-payments are short of £200 per month. Does s.101 of the CCA 1974 prevent me from terminating without paying the remaining payments as the annual payments are over £1500?

The vehicle is just sitting on my drive unused and is not needed any more.

HI

Can you just clarify if this is a hire agreement or if it is a hire purchase agreement. This thread relates to HP agreements which are terminated under section 99 of course, however I may be able to advise if it is a hire car, but will need to have sight of the contract.

[trickygj]

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

Hi new to this site and I have been reading this thread with interest.

I am nearly half way through a 24 month contract hire (Hire Agreement Regulated by the CCA 1974)and have paid including the initial larger payment over 50% of the contract value. The monthly re-payments are short of £200 per month. Does s.101 of the CCA 1974 prevent me from terminating without paying the remaining payments as the annual payments are over £1500?

The vehicle is just sitting on my drive unused and is not needed any more.

[katorik]

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

No, they should not have Defaulted your credit report

You are entitled to terminate the agreement without charge as you have completed in excess of 50% of payments, therefore the default is wholly invalid and inaccurate.

I would suggest writing to them stating you intend to contact the Information Commissioners Office to place a formal complaint about this.



As for the rest, write back quoting the terms of the consumer credit act relating to VT (as found in this thread and state that no payment will be forthcoming as the statute clearly states "reasonable condition" therefore no further sums are due.

State that if they continue to attempt to demand sums that are not due, you will file an official complainty with the OFT

Thanks, I've now paid the £2 fee to get my credit report to confirm what I was told by a lender and will then respond accordingly.

[ncf355]

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

If you are in dispute after VT should the Finance Company be placing a default against my credit rating?



I VT'd the car in November following this post (thanks) and there was no damage charge. However they (Santander) are claiming £2400 in excess mileage charges for the car. It was 3 years into a 4 year PCP and had passed the 50% mark. Mileage was 33,000.

Santander are claiming the mileage clause is excluded from the 50% rule on the agreement which I am disputing. 33,000 is also within fair wear and tear. They have passed this on to their debt collection agency who again I have disputed the claim with and it is currently on hold.

Santander state if I am not happy I can apply to the Financial Ombudsman.

I have suggested they proceed to take me to court as I am not prepared to pay this.

However I found out yesterday that I have an adverse credit rating now - should this have happened if it is in dispute?

No, they should not have Defaulted your credit report

You are entitled to terminate the agreement without charge as you have completed in excess of 50% of payments, therefore the default is wholly invalid and inaccurate.

I would suggest writing to them stating you intend to contact the Information Commissioners Office to place a formal complaint about this.



As for the rest, write back quoting the terms of the consumer credit act relating to VT (as found in this thread and state that no payment will be forthcoming as the statute clearly states "reasonable condition" therefore no further sums are due.

State that if they continue to attempt to demand sums that are not due, you will file an official complainty with the OFT

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

Well guys, just to update:

Received an email from RMS Receivables this morning telling me that after discussing the matter with their clients they are willing to write off the amount owed for damages and the amount outstanding is £0.00.

Thanks again for all the help provided - much appreciated.

Well done,

[vanbasten]

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

I will send it by email now and also send a copy by recorded delivery 1st class post and hope for a positive outcome.

Thanks again for all your advice on this matter.

Well guys, just to update:

Received an email from RMS Receivables this morning telling me that after discussing the matter with their clients they are willing to write off the amount owed for damages and the amount outstanding is £0.00.

Thanks again for all the help provided - much appreciated.

[katorik]

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

If you are in dispute after VT should the Finance Company be placing a default against my credit rating?

I VT'd the car in November following this post (thanks) and there was no damage charge. However they (Santander) are claiming £2400 in excess mileage charges for the car. It was 3 years into a 4 year PCP and had passed the 50% mark. Mileage was 33,000.

Santander are claiming the mileage clause is excluded from the 50% rule on the agreement which I am disputing. 33,000 is also within fair wear and tear. They have passed this on to their debt collection agency who again I have disputed the claim with and it is currently on hold.

Santander state if I am not happy I can apply to the Financial Ombudsman.

I have suggested they proceed to take me to court as I am not prepared to pay this.

However I found out yesterday that I have an adverse credit rating now - should this have happened if it is in dispute?

[vanbasten]

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

I will send it by email now and also send a copy by recorded delivery 1st class post and hope for a positive outcome.

Thanks again for all your advice on this matter.

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

so i have amended my letter for sending - any thoughts?

Dear Sirs,

Further to your letter dated 27^th February 2014 regarding the termination of my agreement with ********* in respect of vehicle registration *******, wherein you state that the vehicle has found to be damaged over and above industry wear and tear due to a scratch on the front bumper and asking for payment of £135.00.

The car when returned had sustained no such damage whilst in my possession, this is evidenced by photographs taken by me and your own representatives condition report on collection of the vehicle. The vehicle complied with the requirement of the Consumer Credit Act Section 100 in that "reasonable care" had been taken of it, and there are therefore no further sums due.

I also hold a copy of the auction house inspection report carried out on 21/02/2014 which details no damage to the front bumper of the vehicle and find it strange that the auction house report you have supplied with your letter is dated 25/02/2014, some 4 days later and yet notes damage to the front bumper.

Please confirm the completion of the voluntary termination process and that the account now has a zero balance.

Thank you,

Yes perfect

[vanbasten]

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

so i have amended my letter for sending - any thoughts?

Dear Sirs,

Further to your letter dated 27^th February 2014 regarding the termination of my agreement with ********* in respect of vehicle registration *******, wherein you state that the vehicle has found to be damaged over and above industry wear and tear due to a scratch on the front bumper and asking for payment of £135.00.

The car when returned had sustained no such damage whilst in my possession, this is evidenced by photographs taken by me and your own representatives condition report on collection of the vehicle. The vehicle complied with the requirement of the Consumer Credit Act Section 100 in that "reasonable care" had been taken of it, and there are therefore no further sums due.

I also hold a copy of the auction house inspection report carried out on 21/02/2014 which details no damage to the front bumper of the vehicle and find it strange that the auction house report you have supplied with your letter is dated 25/02/2014, some 4 days later and yet notes damage to the front bumper.

Please confirm the completion of the voluntary termination process and that the account now has a zero balance.

Thank you,

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

sorry for bothering you again.
Should i ask them for photographic evidence of the supposed damage?

And should i reference the fact that the auction houses inspection report has been altered from the one done on 21/02/14 to the one dated 25/02/2014 which they supplied me with?

No as far as yo are concerned the car was no damaged when it left you, why would you be interested in a photograph of damage which occurred subsequently.

You can include the other information in your derailed explanation.

You must remember that they are not doing you any favors, these are your rights and they are just trying to squeeze a little extra money out of you, I find that an assertive stance works best. IMO

[vanbasten]

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

sorry for bothering you again.
Should i ask them for photographic evidence of the supposed damage?

And should i reference the fact that the auction houses inspection report has been altered from the one done on 21/02/14 to the one dated 25/02/2014 which they supplied me with?

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

V good some thoughts ;


In my opinion it needs a little pruning. Alternatively you could commence the letter with a simpler statement.

The car when returned had sustained no such damage whilst in my possession, this is evidenced by photographs taken by me and your own representatives condition report. The vehicle complied with the requirement of the consumer credit act section 100 in that "reasonable care" had been taken of it, and there are therefore no further sums due

Just to ensure that the purpose of the letter is clear form the start(some of these people have a very short attention span I have found
)
Also , you really need to state that you consider the matter closed and require them to issue a confirmation of such.

It is a mistake I think to offer them the opportunity to enter into a discussion on the matter.

[ncf355]

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

Personally, I'd consider a sratch on a bumper ordiinary wear and tear for a used vehicle anyway! (unless it was, say, a year old with 5 k miles on it)

As a comparable, I have literally just purchased a 09 Mondeo in general good condition, but with a few obvious scratches herre and there, for the price I was paying (which I think would be well in excess of auction prices) I could have rightly expected them to tell me to 'take a hike' had I insisted on the bodywork being scratch free on suich a vehicle.