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

[Sharpe]

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

Hi everyone.

Lots of good info round here. Thanks to everyone for taking time to write in.

I've got a HP agreement with MotoNovo and already paid just over the 50%mark. I tried to change my car, went to same dealer where i took this car from, and I've been asked for an extra £2000 to setle my agreement. I decided that i will be better off to just voluntary terminate and hand the car back. (They did not helped me with this info, in fact my visit has finished when i mentioned about VT conditions).
So i Googled for a few days an downloaded a template from citizen advice website. The letter stated that i want to exercise my right to cancel under s99 CCA with "imediate effect". I called the MotoNovo on 18th, the lady over the phone was nice and explained me some things and i been invited to write them a letter by my hand and post it to them or email it. So i just copied my template by hand made a picture of it and emailed it. After that i thought it would be better if would use a recorded delivery service, so i dropped the printed letter in post "signed for" very same day.

Now my question is whether is my agreement terminated or not yet. Ive been reading on previous posts about a 14 days notice. Also a new payment is due for 25th, and i wouldn't feel like make another payment for this car. Should i cancel my DD? I phoned them today and questioned them about my agreement, they confirmed that they received my letter on 20th and they told me because my letter turned in so soon is more likely to have to pay the next installment. I mentioned that i should not pay as is their now not mine and i would be happy to assist in handing the car over asap before 26th. Also ive been told that the following instalment will be used for eventually payments which may occur.
To be honest I do not trust them i do not feel like paying anything in advance...

What should I do?...
Its a 11 plate, 95k miles today (bought with 34k 2.6 years ago)

Thanks in advance!

[kclkdxxx]

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

Hi malnik, I just wondered if after this post you had any further contact with the finance company, and if you were charged for excess miles or damage? I will be VTing my Fiat within the next few days!

[Sylwia]

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

Hi Rob
I got the documents finally come today. Before i sign them i would get advice from You
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[R0b]

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

Generally, there is a rule of the finance company to mitigate their loss. Although not a legal duty, the Courts would expect them to take reasonable steps to minimise their losses and not to take unreasonable steps which may further increase their loss. Whether or not they are entitled to the alleged compensation for damage without carrying out the repairs is an arguable point. Though I would expect them to provide evidence of the car's valuation in its present condition and what the car may be worth if the repairs (only the ones beyond wear and tear) were carried out. They can only be compensated for damage beyond wear and tear so if they had chosen to carry out repairs which were not deemed beyond wear and tear, they couldn't recover those monies.

Again, whether the finance company ought to be entitled to the compensation is a matter of fact taking into account all of the circumstances and evidence. I find it difficult that someone which is provided for under statute, is to be determined at the sole discretion of the finance company. The relevant section says that half the total amount payable may be increased to compensate for failing to take reasonable care of the goods but it does not stipulate who makes that decision. As the provision is made out under statute law, that decision would therefore be determined by the court.

Applying a default to someone's credit file is like a backdoor to possibly coercing or putting undue pressure on a person to pay something that the finance company may not be entitled to.

If you are complaining to the Ombudsman, you should set it out clearly and make sure to mention that all they have done is given you a breakdown of the damage to the car and have no further evidence that shows you were the sole cause of it.

[jaw1985]

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

Hi Rob,

Yeah, I am responsible and I'm happy to pay the repair bill IF the repairs took place.
In the letter they have stated that regardless if the repairs took place or not I am liable for the estimation cost? surely this is not legal?

So far they have not applied any defaults to my Credit file, isn't stopping them trying to though.

I'll refer my complain to the Financial Ombudsman and see if they can assist me with my complaint.

[R0b]

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

If there are any repairs or maintenance require you are responsible for the cost of these.

Unfortunately the above is incorrect. The law says that where the goods are returned and are not in a reasonable condition, then the finance company can receive compensation. However, I would argue that the finance company is not the judge of what is owed and what is not owed because their right to receive compensation is set out in statute law and therefore it is the Court's duty to determine whether it has been returned in a reasonable condition.

Equally, what if the car is not new and is 5/6 years old with damage already sustained due to previous owners? Why should a borrower pay for someone else's damage? In that case, it would be up to the finance company to prove the damage occurred whilst in the possession of the borrower, you cannot simply assume that it was caused by you.

How can they prove it? By carrying out an inspection prior to you taking possession of the car and then comparing the two inspections to see what and if any damage beyond reasonable wear and tear has occurred. Sadly, finance companies never carry out an inspection prior to handover so they just cannot prove that the damage was caused by you.

Manheim carry out an inspection according to BVRLA guidelines, yet those guidelines are generally used for leased cars and the vehicle rental industry. The guidelines have a set criteria as to what may be considered reasonable wear and tear regardless of what age the vehicle is. So the same standards will be applied to an almost-new vehicle as well as a vehicle that is 10 years old.

Have you checked to see if they have applied a default on your credit file?

You can submit a complaint to the Ombudsman but they do at the moment seem to be inconsistent. However, the key point to note is that they must prove the damage beyond wear and tear happened on your watch and I am not sure how they can do that.

[jaw1985]

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

Hi Rob, Everyone.

I issued the letter on Post ( Again thanks a million ) - http://www.legalbeagles.info/forums/...302#post668302

in relation to the outstanding Issue I have with Moneyway. After issuing the letter Several times, both standard and recorded delivery I received a letter of acknowledgement from Secure trust bank on the 6th of January and informed that they would be investigating my Complaint.

As I've said I've personally no issue paying the amount owed. My Issue is with the fact they have just added the amount onto my finance agreement and are threatening to Default me.

So........

I've received my Complaint investigation letter and low and behold they aren't doing anything. Unsurprising really. A statement in the letter really did surprise me and it relates to the estimated costs of repair to the vehicle.

"We may decide not to complete the repairs nevertheless; the Estimated costs are still required to be paid by you..."
Surely this is not legal? - If I ask a builder to come and repair my house and they say it will cost x.................... I sell my house that builder isn't going to turn up and say excuse me i said it would take x amount to repair your house.... where's my cash?

They have stated that this will be the final correspondence issued by them and if i have an issue I should contact the financial ombudsman should I not be satisfied.

So my question now is what do I do? How do i tackle this?

[BelgianBun]

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

Hi,
Need some advice to a couple of queries associated with VT.
1. I'm a guarantor on my wife's PCP which we're intending to VT. No payments ever missed, hence I'm assuming that my liability as a guarantor will cease also when the VT is activated, right?
2. Having performed a calculation as to when 50% of the total payable amount will be repaid, I've come to the conclusion that on the month prior to hitting this point I'm only £100 under. Could I make an overpayment during the period prior to hitting th 50% point so that I can actually trigger the VT a month earlier?
Thanks,
Steven.

[Sylwia]

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

Thay know that the car and the car documents like V5C are in the auction house. That lady she said that thay need permision for seling this car in auction.Im not sure exacly what that but i should find out on Tue. whan I will get them but before we will sign them i will ask you if that alright with you.
and thank you for help and sorry for my english but I hope You can understend what I write😊

[R0b]

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

What documents do they need? they may be referring to the V5C and service book etc. but if you have terminated the agreement yourself you should write to them and point that out. Thefore those default letters they have sent to you were not applicable and the next steps are for them to come and collect the vehicle.

[Sylwia]

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

hi Rob I just spoked with Barclays and i was told thay need documets (permission for seling ouer car). Thay gone send me and I should recived them by Tuesdey. whan i will get them i will send to You first .

[Sylwia]

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

I should have still the letter whan i will be at home i will find them. I know that, but im really dont know what to do now. Whan i spoked with tham thay know that the car is Vt thay agree with that, but thay still ask me for paper which i didt get any from tham

[R0b]

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

Hi Sylwia, I am a bit confused, do you still have evidence that you wrote to them and temrinated the agreement? The letter you posted appears that they claim you missed payments.

[Sylwia]

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

Hi Rob
whan I wroted the letter I did use your template for VT. and it was with big capitol letter. The company name is BARCLAYS Partner Finance.
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i hope i done right . Thank you

[003746]

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

I have a question I'd love answered!
I have a PCP through VWFS- I am aware that once I have paid 50% of the contract I am able to VT. Does 50% include the balloon payment at the end? I am currently half way through my contract, however considering the balloon payment is 7k I have not paid 50% of the contract. Just a small matter but it would be helpful to know. Thanks!!