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

[gravytrain]

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

As a matter of interest , what is the book trade in price for your car currently ?

[dingobingo]

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

£3700.
They say the £22 is part of a an installment arrangement made earlier in the year to cover some other arrears. Which doesn't make sense. I'f I'd default earlier in the year on a single monthly payment, why not issue the default for that. I dont recall making any installment arrangement and why have they just sent me paperwork for this £22. I'll call back and ask what the £22 was for and to send me paperwork for that.

[gravytrain]

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

So in other words they stand to make over 2k if they don't accept the VT,

In order for the earlier termination to be valid the default notice would have to have been issued before the agreement was terminated and it would have to state the amount of arrears, if it was only £22 it would make no sense, as this would not be a repudiatory breach it would just be arrears.

[gravytrain]

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

You need to, impress upon them that you are terminating under section 99 and as far as you are concerned the agreement was terminated on the date in your letter.
If they are saying that they terminated the agreement on default earlier, you require a copy of the default notice issued under section 87 of the consumer credit act and the termination notice.

Also an explanation of why the agreement was allowed to run, and why subsequent payments were not used to repay default sums and the arrears carried forward, as is normal practice.

[dingobingo]

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

Here's the info they've come up with, what do you think?


As requested please find attached an up to date statement of your account to confirm payments made to date.

You will see from this statement that your monthly payment due on the 01st May 2010 returned unpaid (taken on the 04th due to weekend bank holiday) together with the automatic resubmission requested in the 11th May 2010. You then called on the 17th May 2010 and made a payment of £250.00 (£22.21 short of your normal monthly instalment of £272.21) with a plan to clear the outstanding arrears (plus charges incurred of £30) on top of your normal monthly payment due on the 01st June 2010. The arranged payment failed due to the cancellation of your direct debit.

[gravytrain]

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

Here's the info they've come up with, what do you think?


As requested please find attached an up to date statement of your account to confirm payments made to date.

You will see from this statement that your monthly payment due on the 01st May 2010 returned unpaid (taken on the 04th due to weekend bank holiday) together with the automatic resubmission requested in the 11th May 2010. You then called on the 17th May 2010 and made a payment of £250.00 (£22.21 short of your normal monthly instalment of £272.21) with a plan to clear the outstanding arrears (plus charges incurred of £30) on top of your normal monthly payment due on the 01st June 2010. The arranged payment failed due to the cancellation of your direct debit.

No not enough to default and terminate your account, nowhere near. They could not terminate the account anyway without sending you a section 87 notice,

The notice would have had to state precisely how much you had to pay to remedy any shortfall on your payments, and give you the opportunity to remedy,

Generally these are sent out after a minimum of two moths arrears. The account cannot be terminated without this notice being sent first.

[z0mbee]

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

Hi all,

I am in the process of VTing my car that is with Advantage Finance. The settlement figure seems ok, but the nearest drop-off location they can offer is 35 miles (and an hour's drive) away. Is this 'reasonable'? They say they can collect it, but for an £80 charge. I am seeing conflicting information as to whether or not they can charge to collect, so would be very grateful if someone could put me right.

Thanks,

Gary

[gravytrain]

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

It has to be remembered that on a conditional sale agreement or HP, the vehicle does not belong to the debtor at all untill the last payment.
Why would you pay £80 for someone to collect their own vehicle?

You agree to drop the car in, if it is only within a reasonable distance, if it is any more than say 20 mins away, I would insist that they made other arrangements. If they are trying to use this as a sticking point in order to stop the VT, send them a letter stating your position and record delivery, notify the TS and let them know.

Inform them the that the termination of agreement is to take place xx date (at least two weeks notice) and inform them that you will be charging storage from that date at xx per day.

[z0mbee]

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

It has to be remembered that on a conditional sale agreement or HP, the vehicle does not belong to the debtor at all untill the last payment.
Why would you pay £80 for someone to collect their own vehicle?

You agree to drop the car in, if it is only within a reasonable distance, if it is any more than say 20 mins away, I would insist that they made other arrangements. If they are trying to use this as a sticking point in order to stop the VT, send them a letter stating your position and record delivery, notify the TS and let them know.

Inform them the that the termination of agreement is to take place xx date (at least two weeks notice) and inform them that you will be charging storage from that date at xx per day.

Hi,

Thanks a lot for the quick reply! With regard to dates - I have already sent them a letter using the useful template provided on this site, and they have replied to confirm the outstanding amounts. Is the agreement 'terminated' already, or does this only happen when the car is collected?

[gravytrain]

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

Hi,

Thanks a lot for the quick reply! With regard to dates - I have already sent them a letter using the useful template provided on this site, and they have replied to confirm the outstanding amounts. Is the agreement 'terminated' already, or does this only happen when the car is collected?

The agreement is terminated once the notice you have given ends, this is when your last contractual payment expires.

You must make sure that everything is documented, and kept just in case. Also as said earlier on here i would take some photos of the car along with something that can identify the time they were taken, like a newspaper, they may come back with a bill for bodywork , it is nice to have something to throw at them to show that the car was in reasonable condition when you returned it.

[wiregal]

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

I have just come across this thread as I am in negative equity on my car and my new (cheaper (!)) company will not finance the negative equity.

On contacting Fortis this morning, I was told that I had paid over half so I could end the agreement, but she was very rude after this point! I was told that I would be sent forms to fill in and sign and the process could take 28 days. Now reading here, I can just write to them and give a reasonable amount of notice (14 days)? and ask where they would like me to drop the car off.

I have read some horror stories where people were charged extra fees when it came to the finance company not getting as much for the car as what was owed. Is Fortis within its rights to charge me, if similar occured? Im really wary of doing this..

And to complicate matters, I have a private registration that I will need to put onto retention. My agreement is with my personal registration. Will Fortis likely kick up a fuss about this changing too?

Im sorry to hijack this thread but it sounds quite right.

Did the OP get the result they wanted??

Thanks

Liz

[labman]

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

The process outlined by Gravytrain is 100% correct, so you are able to VT. I am afraid I can't help on the issue of the private plate.

[Paulr83]

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

Need some help guys, I have vt'd a car to fortis lease about 2 months ago (signed all paperwork I was asked to, which I'm regretting now I think after reading this thread!!) they called me about a month ago saying they were looking £650 odd pounds for "damage" on the car, I explained that the damage was on the car when purchased and had a report from garage showing this, which I sent via email along with a letter stating that they hadn't asked for any report on condition before lending on the car and a therefore didn't believe it was down to me to pay for damage on the car prior to me owning it.

i called them again at the start of this week as after checking my credit file it now shows me being a month in arrears, the direct debit is still set up and no money has been attempted to be taken, anyway that's sorted and the mark is just to show I've vt'd the car... But while on call the say they hadn't received the original email from me, I gave them the time an date it was sent and they asked for it to be resent which I've done.

I've now had a call today saying they are applying a 30% discount to the amount originally asked for but I still don't think this is right, what should I do???? They say I've got ten days to pay the £400 odd pounds!

FORGOT TO ADD... The damage on the car is fair wear and tear... Small dinks on sides from the car being parked in car parks, no broken paint, scuffs or scratches! And a small tear on the drivers footwell carpet, as I said above all noted on the sheet from garage whew car was brought into their stock in 2010!!! It's now a 5 year old 80k car!

[labman]

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

The agreement would have terminated the day you sent the letter. You say you have proof of the condition from purchase - just send this to the company.

[Paulr83]

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

The agreement would have terminated the day you sent the letter. You say you have proof of the condition from purchase - just send this to the company.

I've sent it again earlier this week, but they're saying that it's down to me as I'm the one that's accepted the car in that condition when purchased but they aren't accepting it in that condition back, they don't ask for a vehicle report because they only provide the funds for it, the car and condition is down to me.