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

[Kellster]

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

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.



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.

Hi guys, just a little update. I sent that letter off a day or so after posting and I haven't heard anything back from BH at all, until yesterday. Letter dated 13 July stating the following;

Overdue amount £200.70, including fees of £40.03
Late payment interest charged but not included in overdue amount £0.24

Dear....

This is a Notice of Default Sums and is given in compliance with the Consumer Credit Act 1974.

Date Default Sum become payable - 13/07/2016
Nature of Default Sum - 10 Day collection activity fee - £12.00

*We request that you pay this amount without delay.

This notice does not take account of default sums which we have already told you about in another default sum notice, whether or not those sums remain unpaid.

You need to pay us £200.70 to bring your agreement up to date.

etc etc etc


Just wondering if you guys can help on what to do now. Car is still sitting in my mums drive as they haven't collected it. As i said i'd received nothing since sending off Robs letter regarding collection fees.

[R0b]

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

Well the first question is, do you owe the money? If so you need to pay it, if you have already paid 50% or more when terminating then you do not need to pay it provided that you gave notice to terminate before the amount was due.

When did you send the letter to terminate the agreement?

[Kellster]

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

Well the first question is, do you owe the money? If so you need to pay it, if you have already paid 50% or more when terminating then you do not need to pay it provided that you gave notice to terminate before the amount was due.

When did you send the letter to terminate the agreement?

Hi R0b I sent the letter at beginning of June. I've definitely paid over 50% as its due to end in Feb 2017

[Cookst1]

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

Hi,

I VT My agreement for car 3/5/16 with my last pyt to take it over 50 % on 07/5/16. After phoning for weekly for about 3 weeks to check they had received the car ( I dropped it off at an agreed Auction centre as advised) they could not confirm where the car was! I phoned the auction centre who advised they still had the car and asked me to ask finance company to email them to arrange collection. so that was the end of May and I received an arrears letter last weekend advising I have missed 2 payments! Phoned them straight up and they advised to ignore letter as automated from system but that they still had not got the car! they advised company that they use no t replied to email yet and to callback. I phoned yesterday and been advised I owe £357 pounds for repairs to the car! I am stunned at this as I took care of the car and was in pristine condition and also photographed the car on 3/5/16 to show how good condition it was in. Can they charge me for this? Especially if I do not know where the car has been for 2 months! I was advised to sign form as part of process of handing the car back and worried they will now use this myself agreeing to these ott charges!
Any help or advise greatly appreciated!

Thanks

[R0b]

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

Hi R0b I sent the letter at beginning of June. I've definitely paid over 50% as its due to end in Feb 2017

The question now is what would you like to do? You could have a few options in relation to the car:

1. Charge them for storage at a reasonable amount £5 / £10 per day until they collect it, or provide a maximum time you will store it e.g. 30 days at £5 / £10 and then remove it from the drive. If you go down this route then any monies you want to recover then you will need to bring a claim to court.

2. Inform BH that they have had more than a reasonable amount of time to collect the car then you will notify the DVLA that they are now the registered keeper and remove it from your drive. Liability then rests with them as they have specifically chosen not to collect it and you are no longer responsible as the agreement has ended. You should also explain that all tax and insurance will be cancelled also.

You could even go further and state that because the vehicle is on the drive and you no longer give permission for it to be there, BH are actually trespassing and so that could be another avenue to bring a claim if you wished to do so.

If you are going to notify the DVLA, do it online (https://www.gov.uk/sold-bought-vehicle) and don't move it on a public road until you have received confirmation from them. It is your responsibility to notify them and if you move it then it gets picked up before the details have been amended, it could be you that is liable for the costs.

[Kellster]

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

The question now is what would you like to do? You could have a few options in relation to the car:

1. Charge them for storage at a reasonable amount £5 / £10 per day until they collect it, or provide a maximum time you will store it e.g. 30 days at £5 / £10 and then remove it from the drive. If you go down this route then any monies you want to recover then you will need to bring a claim to court.

2. Inform BH that they have had more than a reasonable amount of time to collect the car then you will notify the DVLA that they are now the registered keeper and remove it from your drive. Liability then rests with them as they have specifically chosen not to collect it and you are no longer responsible as the agreement has ended. You should also explain that all tax and insurance will be cancelled also.

You could even go further and state that because the vehicle is on the drive and you no longer give permission for it to be there, BH are actually trespassing and so that could be another avenue to bring a claim if you wished to do so.

If you are going to notify the DVLA, do it online (https://www.gov.uk/sold-bought-vehicle) and don't move it on a public road until you have received confirmation from them. It is your responsibility to notify them and if you move it then it gets picked up before the details have been amended, it could be you that is liable for the costs.

Thanks again for replying R0b. I think probably go with number 2. Just want the thing picked up now as its parked in my mums driveway and no doubt she'll be moaning about it soon enough. Should I call them or write another letter?

[R0b]

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

Best off putting it in writing, so you have evidence of them being notified. wouldn't bother sending it recorded delivery first or second class is fine and ask for certificate of postage for the letter as proof. Keep a copy of that stored away in case you need it.

If you look around the other threads here -> http://www.legalbeagles.info/forums/...nce-and-Issues

there's a few examples of letters about collection of the car and threatening to terminate the tax and notify the lender, use that as a starting point.

[Kellster]

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

Best off putting it in writing, so you have evidence of them being notified. wouldn't bother sending it recorded delivery first or second class is fine and ask for certificate of postage for the letter as proof. Keep a copy of that stored away in case you need it.

If you look around the other threads here -> http://www.legalbeagles.info/forums/...nce-and-Issues

there's a few examples of letters about collection of the car and threatening to terminate the tax and notify the lender, use that as a starting point.

Perfect, I'll get that done and sent off ASAP. Should I just ignore what they say about payment etc then?

[R0b]

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

You could address the payment and say that you have paid over 50% of the total amount payable, you gave notice to terminate on X therefore any payments after that date are not owed.

[thewanderer]

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

Hi,

I have a slightly different situation to most,

Im 17 months into a 42 month PCP, and have paid £2500 less than the 50%. Im relocating to another country, and don’t have the option to take the vehicle with me.
Ive contacted the finance company and advised them Im VTC’ing the vehicle which was no issue.
My first query is to confirm if I need to complete the £2500 payment for them to collect the car, (I dont believe that I do) , and if I can cancel the direct debit before making that payment without being recorded as defaulting on the PCP.
My second query is that I was told it will take 2-4 weeks to have the vehicle collected (and it will go straight to British Car Auctions). I feel this is unreasonable, and as Im leaving the country Im planning to leave the car on my drive, with docs and keys with a relative. (The vehicle is already SORN’ed and insurance cancelled).
Am I also able to leave the vehicle on the drive with no insurance with liability transferred to the finance company, on the basis they have been advised of the VTC request. I have taken extensive photos with a dated newspaper, but am concerned that I may get charges for “damages” between yesterday (when I took the photos) and the date of collection.

Thanks in advance for any help.

[Kellster]

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

Best off putting it in writing, so you have evidence of them being notified. wouldn't bother sending it recorded delivery first or second class is fine and ask for certificate of postage for the letter as proof. Keep a copy of that stored away in case you need it.

If you look around the other threads here -> http://www.legalbeagles.info/forums/...nce-and-Issues

there's a few examples of letters about collection of the car and threatening to terminate the tax and notify the lender, use that as a starting point.

Hi R0b,

just wondered if this response sounded ok? Im a bit nervous sending a letter with legal jargon in it and sounding a bit silly, or quoting incorrect things.

Dear Sir/Madam,

Re: Voluntary Termination

Agreement Number: ****
Vehicle Registration: ****

I am writing further to your letter dated 20 July 2016.
You will be aware that the Consumer Credit Act limits my liability to half of the total amount payable under the agreement but excludes any sum payable as a penalty, compensation or damages for a breach of the terms of the agreement. Such terms imposed are inconsistent with my rights under the Act and are therefore deemed void and unenforceable.

I have receipts of letters that I sent to you, firstly 31/05/2016 to advise that I wished to terminate my agreement with immediate effect. Then following your letter dated 3/06/2016 I wrote to you (13/06/2016) to advise that I am under no obligation to pay any fees for the collection of the vehicle. The Consumer Credit Act 1974 explicitly states that, my liability under the agreement is limited to half the total amount payable and any terms under the agreement which imposes additional liability directly or indirectly is strictly prohibited by the Act. As such, I shall not be paying any collection fees.

May I remind you that I wrote to you on 25/05/2016 confirming termination of the vehicle, allowing 14 days for you to collect the vehicle. This period has since expired and I shall therefore cancel the remaining tax and insurance and return the V5C document to the DVLA informing them that you are now the registered keeper of the vehicle, and any subsequent liability shall rest with you.

I would therefore urge you to arrange collection of the vehicle at the earliest opportunity to avoid any issues with the vehicle. Alternatively, I am happy to deliver the vehicle to a specific location provided that you confirm in writing to agree to pay all reasonable fees in doing so.

Yours faithfully,

[R0b]

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

Hi Kellster,

sounds fine by me.

[MarkP80]

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

Can I please ask a question regarding calculation of the 50%? I read the following on another thread, and I'm not sure it's correct -

http://www.legalbeagles.info/forums/...ment-*UPDATED*

2. Calculating the amount before you can voluntarily terminate your agreement
Your liability is restricted to 50% of the total amount payable and this includes not only the credit of the lender but also the interest. Your pre-contract information sheet should identify how much the you are required to have paid before your rights can be invoked. A further example is below.

Credit amount: £7,000
Interest: £1,500
Less deposit: £1,000
Total amount payable: £7,500
Amount before you can VT (50%): £3,750.

My understanding is that the 50% relates to the total amount payable, ie cash price of the goods under the agreement (£7,000 in this case), not the amount borrowed (£6,000 in this example).
So in this case, that would be -
Credit amount - £7,000
plus interest £1,500
So total amount payable = £8,500

50% for VT is then £4,250
£1,000 has already been paid in the form of an initial deposit, so the remaining sum to take this up to 50% is
= £3,250, not £3,750

Any comments on this?

Many thanks,
MarkP

[R0b]

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

Hi Mark,

You are right on the wording (i'll amend it), it ought to be stated as cash price not credit amount, although the deposit is deducted from the cash price resulting in the amount of credit for the agreement plus the total charges such as interest etc. So ultimately the example still has the same outcome although your interpretation of the example is correct if the credit amount is 7,000 after deposit paid.

Cash price = 7,000
less deposit = 1,000
total credit = 6,000
Total charge for credit inc. interest = 1,500
TAP = 7,500

VT point = 3,750

[MarkP80]

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

Hi Mark,

You are right on the wording (i'll amend it), it ought to be stated as cash price not credit amount, although the deposit is deducted from the cash price resulting in the amount of credit for the agreement plus the total charges such as interest etc. So ultimately the example still has the same outcome.

Cash price = 7,000
less deposit = 1,000
total credit = 6,000
Total charge for credit inc. interest = 1,500
TAP = 7,500

VT point = 3,750

Hi Rob, thanks for the quick reply!

That's an interesting point you make regarding the deposit, as it seems at odds with the figures as shown on my HP agreement.
My agreement calculates a Total Amount Payable. which is the Cash Price Of The Goods plus Charge for Credit.
It gives the termination figure as half the Total Amount Payable
The Total Amount Payable includes the deposit, the credit charges plus the monthly payments, ie the deposit is included in the TAP.
In other words, that would mean in your example above, the TAP would be £8,500

This also seems to be the way the figures are calculated in the VW finance agreement in this other thread -
http://www.legalbeagles.info/forums/...f-HP-agreement, where the deposit is also included in the TAP calc.

So I'm still a little confused. My agreement (plus the other in the link above) seems to be saying the VT figure is 50% of the cash price of the goods (plus credit fees), whereas I think you're saying the VT 50% figure should be 50% of the amount borrowed (plus credit fees).

What do you think?

Cheers,
Mark