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

[stdjmax]

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

Can I ask if you have any good ideas how you can delay paying the settlement fee after collecting the vehicle ?

[Kellster]

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

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,

So i sent that letter on 27/7 and have received a letter dated 28/7. Not sure if this is a cross over but they still haven't acknowledged any letter apart from my first one stating i wished to VT.

I have attached an image of the letter received, not sure what to do now.

[Kellster]

Re: 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

Hi Kellster,

Have you retained proof of your letters being sent to them i.e. certificates of postage from the post office?

Perhaps the next stage is to write a further letter, attaching copies of the previous letters you sent to them informing them that the agreement is already terminated, they have failed to acknowledge it at all and have failed to collect the car.

Is the car on a drive or on the public road?

[Kellster]

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

Hi Kellster,

Have you retained proof of your letters being sent to them i.e. certificates of postage from the post office?

Perhaps the next stage is to write a further letter, attaching copies of the previous letters you sent to them informing them that the agreement is already terminated, they have failed to acknowledge it at all and have failed to collect the car.

Is the car on a drive or on the public road?

Hi R0b thanks for replying.

Yes I've retained all receipts and copies of letters so I can copy them and send to BH.

The car is in my mothers driveway at the moment as I've had to cancel insurance. Couldn't afford to pay insurance for two cars (we've had to buy a 7 seater as twins on the way).

I don't know where they have got £160.67 arrears from. That worries me in case I am due them something but I paid £188.70 to them on 3rd June and I VT'd end of May, also as you can see I've paid 8 grand so over 50%

[R0b]

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

Yes I can see that you have paid more than enough there.

When was the date of the original letter sent?

As I suggest, a further letter to BH enclosing copies of the letter explaining that you have retained proof of the letters being sent and you consider that the agreement has been terminated for some time. The default notice no longer applies as you have complied with the requirements, no further monies are owed (provided you terminated before the payment was due, if it was after then you do owe the money but is considered a debt as the agreement has been terminated).

I would also suggest to put them on notice that any attempt to place a default on your credit file will be deemed a breach of data protection and you reserve the right to commence legal proceedings against BH for inaccurate data and damages as a result. You could also do one of two things about the car:

1. tell them that the car is currently parked on a drive and consent is no longer given for the car to remain there. Therefore you require them to contact you within the next 7 days (put a contact number in here) to arrange collection. If they fail to do so then they will be trespassing and you will have the car removed from the drive and put onto the public highway and also make them aware that the tax and insurance has already been cancelled.

2. Instead of removing the car you could suggest bringing proceedings for trespass, although if it is at your mother's house on the drive, she is likely to be part of the claim with you as an interested party.

I'm not sure if you have informed the DVLA of a change of registered keeper but if not, then you would be wise to do this first and wait for confirmation that it has been updated. If you choose option 1 and move the car before it has been updated and the car is picked up for no insurance or tax then it will be you not the finance co. who is liable. You can do this online at https://www.gov.uk/sold-bought-vehicle


I am happy to look at a draft letter before you send it off if you like.

[mizzmjm]

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

I have sent a copy of the above letter to the finance company, and they have been in touch to say that I have to pay a £70 fee for them to pick the car up from me or I can take it to bristol which is at least 2 hours drive from where I live. They say I signed the agreement which included this clause so I have to pay or deliver. This is the only bone of contention with them. In your template you refer to 'statute' preventing them from levying this charge. Can you tell me which statute please so that I can get back to them. thank you
Please send me/us details of how the vehicle can be returned to you.
You will be aware that statute prevents you from levying a charge for the recovery of this vehicle; guidelines also state that if you require me to deliver this vehicle it must be no more than a short (reasonable distance) from my registered address.

[Cda2212]

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

Hi I just wanted some clarification on the excess mileage.

Is excess mileage chargeable? I am in the process of VTing my car, it is being picked up in 3 days. It states on my agreement that the finance company have the right to charge 10ppm for excess mileage but I have read somewhere that actually they are not allowed to do this and excess mileage charges are not enforceable.

Can someone please clarify.

Thanks

[Kellster]

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

So this morning I received another notice letter from BH saying that agreement balance is £5039.98 with arrears of £389.40!?

This is seriously stressing me out now, which I assume is what they intend to do but being pregnant I do not need the undue stress. I am tempted to call them as I need this resolved.

[jaw1985]

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

Hi All,

Firstly kind thanks for the amount of effort a number of people have put into this thread. Thanks to this thread I managed to VT a car I no longer required. Without it i'd likely be stuck in an agreement I no longer required for a few years.

Now, I'm looking for some further assistance on how I deal with the Company now chasing me repair costs.

Firstly I acknowledge that I am responsible for paying the repair costs of the car, I have no issues paying the fee's or the amount involved. The car wasn't in the best condition when it was handed back and I expected a higher bill to be perfectly honest.

What I am looking for clarification on is are they allowed ( Legally ) to claim these costs are still part of the HP Agreement? At present on my credit file it states that I owe the Money Way £1,750 ( Repair Bill ) and this is tied to my HP Agreement. I've had several verbal conversations and they have confirmed the only payment that remains is the repair bill to the car. I had paid 60% of my HP Agreement and from what i'm reading here that agreement with Moneyway should be satisfied on my credit file and then they can make alternative arrangement's to collect the repair costs. Is this correct?

If so, how do I approach Money way about satisfying this on my credit file? What route should I take?

If I've read this wrong then that's fine, I've no issues paying the repair bill but i'd much rather them not using my Credit file and the threat of defaults as a weapon to ensure i do so.

Any advice would be appreciated

[Cda2212]

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

Hi
I did some research last night. If the car is on a lease plan which I'm assuming it is if it's a PCP agreement ( ie you don't own the vehicle until you have made the last payment) the BVLA have set out clear guidelines as to what is acceptable wear and tear when returning lease vehicles. They have even gone to the lengths of posting pictures to give you a better idea of what's acceptable and what isn't.
It's a real eye opener. Definitely worth checking out. It's pretty much the same as if you went to a vehicle hire company and rented a car for the weekend. Dents no bigger that 5mm in diameter etc are acceptable.
I am VTing my car this week with a small dent in the wing and will be going by the guidelines set out by the BVLA.
I googled BVLA fair wear and tear
Good luck

[Cda2212]

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

Hi
I did some research last night. If the car is on a lease plan which I'm assuming it is if it's a PCP agreement ( ie you don't own the vehicle until you have made the last payment) the BVRLA have set out clear guidelines as to what is acceptable wear and tear when returning lease vehicles. They have even gone to the lengths of posting pictures to give you a better idea of what's acceptable and what isn't.
It's a real eye opener. Definitely worth checking out. It's pretty much the same as if you went to a vehicle hire company and rented a car for the weekend. Dents no bigger that 5mm in diameter etc are acceptable.
I am VTing my car this week with a small dent in the wing and will be going by the guidelines set out by the BVLA.
I googled BRVLA fair wear and tear
Good luck

Here's a link the the BVRLA Guide:

http://www.hitachicapitalvehiclesolu...-wear-and-tear

[R0b]

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

Hi All,

Firstly kind thanks for the amount of effort a number of people have put into this thread. Thanks to this thread I managed to VT a car I no longer required. Without it i'd likely be stuck in an agreement I no longer required for a few years.

Now, I'm looking for some further assistance on how I deal with the Company now chasing me repair costs.

Firstly I acknowledge that I am responsible for paying the repair costs of the car, I have no issues paying the fee's or the amount involved. The car wasn't in the best condition when it was handed back and I expected a higher bill to be perfectly honest.

What I am looking for clarification on is are they allowed ( Legally ) to claim these costs are still part of the HP Agreement? At present on my credit file it states that I owe the Money Way £1,750 ( Repair Bill ) and this is tied to my HP Agreement. I've had several verbal conversations and they have confirmed the only payment that remains is the repair bill to the car. I had paid 60% of my HP Agreement and from what i'm reading here that agreement with Moneyway should be satisfied on my credit file and then they can make alternative arrangement's to collect the repair costs. Is this correct?

If so, how do I approach Money way about satisfying this on my credit file? What route should I take?

If I've read this wrong then that's fine, I've no issues paying the repair bill but i'd much rather them not using my Credit file and the threat of defaults as a weapon to ensure i do so.

Any advice would be appreciated

You should argue that because they are putting the amount on your credit file when it did not form part of the monthly instalments they are in breach of data protection, the amount is an alleged amount (even if you agree to pay it). If they have said you owe that much money, there's no harm in challenging it as they might have inflated the costs to incorporate recovering additional monies because you VT'd.

Either way they shouldn't be reporting it as the agreement has ended and that should be reflected accurately on your credit file. The same goes for defaults, they cannot apply a default on your credit file because the repair costs did not form part of the credit agreement so you actually haven't defaulted on anything. You should be able to take action for inaccurate data and claim damages if they refuse to amend the credit file as at the moment it is alleged and the only way of having it recognised is through the courts. Until that point occurs, they are in breach.

However, if you are happy to pay the repair costs then pay and tell them to remove it from your credit file.

[jaw1985]

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

You should argue that because they are putting the amount on your credit file when it did not form part of the monthly instalments they are in breach of data protection, the amount is an alleged amount (even if you agree to pay it). If they have said you owe that much money, there's no harm in challenging it as they might have inflated the costs to incorporate recovering additional monies because you VT'd.

Either way they shouldn't be reporting it as the agreement has ended and that should be reflected accurately on your credit file. The same goes for defaults, they cannot apply a default on your credit file because the repair costs did not form part of the credit agreement so you actually haven't defaulted on anything. You should be able to take action for inaccurate data and claim damages if they refuse to amend the credit file as at the moment it is alleged and the only way of having it recognised is through the courts. Until that point occurs, they are in breach.

However, if you are happy to pay the repair costs then pay and tell them to remove it from your credit file.

Hi Rob,

I was plan on challenging the amount they reported anyway, I was just wanting to check that I was on the correct track and what they are currently doing is in fact illegal. I intend on sending a letter highlighting this because at the moment i am getting nowhere with them. I've had a multitude of conversations with analysts on the phone and they all sing from the same hymn sheet and the conversation normally ends with them sending me a letter about a payment plan and if i don't agree to one they will default me.

[R0b]

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

If you are writing to them then it might be best to spell out exactly why they cannot default you and if they choose to do so then you will consider bringing proceedings against them for breach of data protection (principle 4, reporting inaccurate data) and reserve the right to claim damages as a result.