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

Its a good point to make, I have been basing the calculations on previous HP agreements I've entered into previous in which they have deducted the deposit from the cash price but not included it within the TAP. To find out why this differs in the VWFS and yours I would need to look into it.. there's a lot of consumer legislation so will have to seek out the right one and confirm whether or not the way your calculation has been made is correct and I perhaps got lucky or its not correct.

[MarkP80]

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

Thanks for the reply Rob, and for humouring me with this one

Just for your info I've attached my own agreement

I've been trying to get this clear in my head, and I thought the purpose of the legislation is to say if you've paid more than half the price of the goods, then you can hand them back (correct me if I'm wrong there). So say a sofa in a shop costs £100 and I buy it on HP, then I can hand it back if I have paid a total of £50 (it's interest free today!) Wouldn't it be correct to say that any deposit I paid goes towards that £50 total, the actual £100 cost being the important number?

If I paid £40 deposit and financed the £60, but then the deposit wasn't included, I would have to make payments totalling £30 to VT. I would then have paid a total of £70 on a £100 sofa before I could VT, and that doesn't seem correct, does it?
If the deposit is included, then I would only pay an additional £10 to reach 50% of the total purchase cost.

It's clear that whether the deposit is included or not can have a significant impact on the calculation of whether the 50% point has been reached. In the example in our posts above it's the difference in monthly payments totalling either £3,750 or £3,250. It's a lot bigger difference on my personal agreement!

Is this a matter for individual agreements, or is it a point of law?

Cheers,
MarkP

[R0b]

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

Hi @MarkP80,

I think I might have found the answer and it seems to stem from (as amended on a number of occasions) The Consumer Credit (Agreements) Regulations 2010, Schedule 1 paragraph 12. Link is below for your reference (page 9) and it would seem that this now includes the advance payment. As these regulations have been amended over time it might be that this provision is a new addition since 2010, perhaps that could be why calculations might differ (or again maybe I got lucky with the same company).

http://www.legislation.gov.uk/uksi/2...0101014_en.pdf

So it would seem that the calculation of your agreement appears to be correct according to those regulations which in turn affects the amount you have to pay in terms of monthly instalments.

[Alpinesun]

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

Hi all,

Great thread with lots of great info!

So I'm also thinking of VT my car. It's only two years old so in very good condition but it does have some scrapes on the alloy wheels. Would that be accepted as 'reasonable' or would I expect to see a bill for repair?

Regards and thanks in advance,

Col

[kenemac]

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

Hi all,

Great thread with lots of great info!

So I'm also thinking of VT my car. It's only two years old so in very good condition but it does have some scrapes on the alloy wheels. Would that be accepted as 'reasonable' or would I expect to see a bill for repair?

Regards and thanks in advance,

Col

they will charge you £55 for each scuffed wheel

[danbus180]

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

hi got a car on hp on a 36 months term aug 2016 will be my 18th month can I vt my car am I in my rights to give the car back and walk away from it please help me out on this matter


from dan willis

[JMET91]

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

Hi @R0b,

Hoping you can help me out as you have the 100s before me!

I recently VT'd my Peugeot 208. I coughed up the remaining ~£650 to get to the 50% mark and they collected the car. The guy collecting it said it looked in great condition etc etc. Didn't tell me of any damage he had noted down during the inspection or anything.

Since received a letter from RMS receivables stating that I owe them near £1000. This is for multiple scratches/dents/chips, including a £142 bonnet refinishing. I used your suggested letter templates and emailed them the one that denies any damage above reasonable wear and tear - "The onus is upon you..." etc. The actual total of the breakdown is more than £1100, which leads me to assume that the last payment I made to peugeot (car was collected a couple of days before scheduled payment, and they took this regardless) has been deducted form the total bill.

I had a phonecall and subsequent voicemail (after recognising the number and ignoring it) that stated who it was (RMS), that they were calling about my 'correspondence' and their telephone number - no actual request for me to return their call. I didn't ring back but instead emailed again stating that I would prefer all communication to be either via email or letter, as I had seen you suggest to another user. I have not heard form them since, after sending the second email on Jul 27th. Are they just biding their time/eating into the 35 days they state on their letter? Or have I successfully got them off my back? Not sure what they're doing and getting slightly nervous now!

TIA,

******

[R0b]

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

Hi Tia,

Did you take photographs of the car before you handed it over as evidence of the condition?

Has RMS provided you with any photographic evidence of the damage they are alleging?

I can't remember what their invoices look like but if I recall its usuall a one or to page sheet with a diagram showing the alleged damage. If you could post up the letter / invoice of damage it would be helpful - with all personal info removed. You can do this by taking a legible photograph and upload it to an image site such as www.postimage.org and copy the thumbnail forum link or if you are struggling you can email it to Kati@legalbeagles.info

What are your opinion on the charges? Do you think the car was returned in a reasonable condition? If so, then you should not have much to worry about.

[JMET91]

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

Hi [MENTION=71570]R0b[/MENTION],

I didn't - I planned to, but the guy collecting the car seemed so confident in it's good condition that I didn't bother - naive I know!

No, but I half expected that to come with their reply. I'll sort the picture of the invoice later today.

There was a few small niggles, but nothing that I would consider above reasonable. ~£1000 bill was certainly a massive shock!! Do you think I need to chase them for a reply (I asked them to confirm agreement "by return" after all)?

******

[R0b]

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

Sorry ******, thought your name was Tia.. now realising you meant thanks in advance :tsk:

Well if you think the car was returned in a reasonable condition then the onus is on RMS to prove otherwise. It is unlikely as the car is probably sold at auction by now and without proper evidence I can't see how they can reclaim the monies.

If you haven't heard anything back it might be a good idea just to follow up your previous email before the end of the 35 day period and mention you have not heard from them.

I'm not aware of anyone on here being taken to court but that is still a possibility so you have to be aware of that at the back of your mind, but again proof is necessary and no proof = no claim.

Also keep an eye on your credit file in case they place a default marker on your file. If they do then you can take action against them for breach of data and seek damages.

[stdjmax]

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

Hey I am new to this ....

I had to VT my HP (before the half of the price) because I had severe lower back pain and that was keeping off from working. I could not drive the car any more. It costed already so many visits to the chiropactor.

The dealeship failed to addresss this problem and also there was not option to remove the car seat and install another one because of the seats airbags.

The dealeship said ok to VT but there are asking to sign their HP form (which it seems here you are suggesting no) and pay the remain half agreement to collect.

I can delay this ... right? CAn I ask compensation because they have fail to address the issue with the chair?

[R0b]

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

Why do you believe the dealership is obligated to address the seat issue? Are they also the finance company too?
The dealer more than likely is there to sell the car to the finance company and therefore the finance company then hires it out to you. I don't understand their liability to you in that respect.

As for the HP form, I would advise against it but entirely your choice. Just be aware if you sign it then you might cause yourself much bigger problems down the line if you do.

As for the actual VT, have you written to the finance company to officially terminate the agreement? Termination of the agreement happens regardless of whether or not the car is collected, VT does not happen on the condition that the car must be collected first. So if they choose not to collect it then it is simply their choice, but if you own a drive and its sitting there, and you don't consent to it being there then they are trespassing effectively. Equally, you can't be obliged to continue the tax and insurance beyond the date of termination.

They will probably insist that you pay up before collection but I would ask them to point out specifically where in the Consumer Credit Act does it say that termination is only effected once 50% of the total amount payable is made. It says you are liable but does not mean that it must be paid before the agreement is terminated.

[stdjmax]

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

Oh I see
One more thing regarding the letter you have listed here!!!
It is a bad idea to say the reason for voluntarily terminating the aggreament ?
(for example seat is very uncomfotable )

[R0b]

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

Your choice, I've not known anyone to explain why they are VT'ing because there is no obligation to explain your reasons but that you are terminating. I cannot see any harm in telling them if you want to though

[alanstitch]

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

Hi,

I want to VT my Nissan financed using MotoNovo.

The car has several scratches, some hairline and one major scratch (panel and bumper) near to boot where my wife reversed off our drive too closely to a brick pillar. The rest of the vehicle is in good condition for it's age etc.

My question is I have yet to get a quote to fix the major scratch, but I am assuming that I can't hand it back with this damage as they can pursue me for costs to fix this, which I assume would be inflated?

The other scratches I have zero clue how they have occurred - I personally believe the paint finish is poor as for example where the handles are there is several scratches here - which have never occurred before in previous vehicles.

I obviously don't want to pay to have it put right if it's not absolutely necessary and have read elsewhere you don't have to fix issues like this?

Matt