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

[alastairweller]

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

Thanks labman

So if I wasn't to sign and return it I should just call and tell them that I've already given notice, I don't need to sign anything further and they need to advise of collection?

Thanks

Al

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

It looks pretty innocuous - it depends what they're going to put on your credit reference file when they update it. There was a recent post here where Mercedes Benz changed the terms of someone's finance agreement having discovered they'd VT'd previously - just in case you're buying another Merc so you're aware.

You have specified the date for termination of the contract though, and they cannot lawfully force you to sign anything else once the agreement is terminated, nor can they refuse its termination.

[alastairweller]

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

Hi All

I've been reading this thread but registered to post up as I've just terminated by contract with Mercedes-Benz finance using the template letters in the first few posts.

Mercedes have posted me a pack which includes the document (scan here) and a request that I sign and return it. The wording of the document doesn't seem to be of much issue but from reading here the suggestion is that I don't need to sign anything as my letter was enough.

Any pointers gratefully received.

Thanks

Al

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

Hi, just a bit of an update and advise request again. Sent the letter off again stating the date of termination and that the drop off was too far away, to which today I received a phone call.

They said that because it was so far away they were prepared to wave the £75 pick up cost, but (always a but!) in order for the termination to take effect I'd have to send back the paperwork stating I had an active MOT and the car was running ETC. I argued with her that the letter I'd sent was confirmation that the contract had ended, but she kept saying I'd have to sent that pack back to her. So the question is shall I just be happy they've waved the pick up cost and sign and send the pack back, or what next step should I take??
Thanks for the help.

Well it depends what is on the pack, if you are quite happy with what it says, I would send it. Keeping in mind that the timescale for the termination depends on the letter you sent not any that may be mentioned on their document, but well done for sticking to your guns and getting them to waive the collection charge.

[Gmule85]

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

Hi, just a bit of an update and advise request again. Sent the letter off again stating the date of termination and that the drop off was too far away, to which today I received a phone call.

They said that because it was so far away they were prepared to wave the £75 pick up cost, but (always a but!) in order for the termination to take effect I'd have to send back the paperwork stating I had an active MOT and the car was running ETC. I argued with her that the letter I'd sent was confirmation that the contract had ended, but she kept saying I'd have to sent that pack back to her. So the question is shall I just be happy they've waved the pick up cost and sign and send the pack back, or what next step should I take??
Thanks for the help.

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

Hi.... I've sent my letter using the template to Close Motor Finance to do a VT. They have been in touch and advised on the following which I wanted some advice on.

1) My template letter advising them of my VT arrived last Friday (tracked and signed for). I obviously put in there the bit about 14 days notice. They have said that as the next payment is the 3rd of November, I need to pay that as they cannot take the car back before the payment due date. Not your problem. You will have no live agreement with them then.
2) They have sent me a "pack" out which I need to fill in and sign before they can proceed any further. She said I had to confirm details such as MOT, TAX, Accident Damage etc. No harm in completing this honestly, but remember fair wear and tear is allowed for.
3) They either want me to pay £125 to have it collected, or for me to drop to an auction house in Leeds - 2 hours away from me. Don't pay and tell them 2 hours is too far away. If their garage is local, take it there and leave the keys with them. Make sure you get a photograph of your vehicle as it is when you leave it, with that day's newspaper in it. Alternatively tell them they are welcome to collect it, but you will not be paying. If they leave it for too long, send them a breakdown of weekly storage costs you'll be charging them (they won't pay them, but it will feel good!)

Any assistance gratefully received.

Cheers

Jon

Hope that helps. :beagle:

[jwallbutton]

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

Hi.... I've sent my letter using the template to Close Motor Finance to do a VT. They have been in touch and advised on the following which I wanted some advice on.

1) My template letter advising them of my VT arrived last Friday (tracked and signed for). I obviously put in there the bit about 14 days notice. They have said that as the next payment is the 3rd of November, I need to pay that as they cannot take the car back before the payment due date.
2) They have sent me a "pack" out which I need to fill in and sign before they can proceed any further. She said I had to confirm details such as MOT, TAX, Accident Damage etc.
3) They either want me to pay £125 to have it collected, or for me to drop to an auction house in Leeds - 2 hours away from me.

Any assistance gratefully received.

Cheers

Jon

[Gmule85]

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

Excellent stuff, I'll get that letter sent out straight away then, thanks for your help, I'll keep you posted on any further developments! And hopefully things will get a bit simpler and they will play ball, thanks again.

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

Just say the contract was terminated on (whatever date you specified). You are prepared to deliver within a 20 mile radius, otherwise they need to arrange to come and collect it at a mutually convenient time.

Try not to get involved in telephone conversations, just keep everything in writing so nothing can be misinterpreted. You've no need to specify any legislation, that's for them to check, not you to tell them. They'll discover you're right. :beagle:

[Gmule85]

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

Brilliant, thanks for the reply, so just to clarify, I should now just send them a letter saying that it is their obligation to pick the car up or provide me a closer drop off, should I state which legislation or quote anything with the letter? The guy on the phone was either extremely stubborn, or doesn't know the legislation himself I think!

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

You have given a date for termination of the contract. They can't take money for an agreement which no longer exists.

They have to arrange a LOCAL drop off point which is reasonable. You do not have to pay anything for them to collect it. They can come and collect it, but if they don't, start charging them storage at a reasonable rate. Post back if you're going to do that.

Write and remind them of their obligations. They may never have had a problem with it as they've always managed to pull the wool over peoples' eyes before, and not come across someone who knows their rights.

Make sure you read about the condition report, photos with the daily newspaper etc... as well, and don't sign anything further. You've done what you need to. The ball is in their court now.

As for auctions, I suspect, Bridgend, Newport, Leominster, Merthyr Tydfil are all closer to you. You may know of ones even closer - those are near me in the Rhondda, except Leominster which may be a possibility depending on were you live. :beagle:

[Gmule85]

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

Hi guys, I know you have probably covered this but I just wanted to check things through because after the phone call I just had with black horse I'm not sure this VT is going to go smoothly.
I'm at the stage now, where I have sent in my Vt, (one of the very helpful templates in this thread),
I was then sent a pack by them saying that to co to us with the VT I should either select an option to take the car to an auction house, the nearest one was Bristol! And I'm in west Wales! Or pay £75 to have them pick it up. So I phoned them to try and arrange a more local drop off, and he said it would be better for me to pay the money and have it picked up, after arguing my case he said the only options you have are to take it to Bristol or pay the £75, he went on to say this is a tried and tested method and I was the first person to ever have a problem with it, the conclusion of the call was that he was writing on my file that I hadn't sent back the pack, that I was aware of the options but wasn't willing to pay the money for pickup, and that if I hadn't sent the pack back with my selected option in 3 weeks they would start taking payments again. So any advice where I go from here would be gratefully accepted, or should I just pay the money and be done?? But from the sounds of it signing that pack they sent would only lead to further issues down the line.
many thanks!!

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

Are you confident the car will reach the sum at auction you need in order to pay off the amount owing to VT? At the end of the day, it doesn't stop you VT'ing it, it means there would be a balance outstanding and you'd have to reach an agreed repayment plan. Don't sign anything further now. You've sent the letter naming the date for VT'ing, that's all you need to do.

[SAFFA]

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

Hi all, I am new to this site and have read all the above and various other post before calling First Response Finance this morning to VT. I was quite nervous after reading your stories. First Response was very helpful over the phone, immediately actioned the VT and will take the remaining £97 I owe them by Direct Debit on Friday. They also immediately sent an email to the Auctioneers to arrange pickup and gave me their contact number so I can arrange for the car to be collected quicker if I wanted. From what I read above this seems to easy and I am waiting for the catch. The person on the phone did say to me that if the car doesn't reach the required amount at auction because of damage or major mechanical problems other than fair wear and tear, then I would be liable for the shortfall. She also mentioned that this only happens in about 20% of cases they deal in. I made her aware that the car is in a good condition and that I am having it serviced today. I also told her that I would expect the person picking up the car to do a condition report which should highlight any issues. I will follow your advice and take pics with the day's newspapers. I will call the auctioneer tomorrow to arrange pickup and will post what issues I run into, as I am sure there will be. If something looks too good to be true, it usually is.

[give use a kick]

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

As long as you pay what is due for the VT it won't affect your score. It is normal practice to return the V5, make sure you get your slip and write to the dvla as a precaution, keeping a copy if the letter. Also make sure you have detailed photos of the car with that days newspaper on them in order to prove its condition. Reasonable wear and tear must be allowed for.

Many thanks for hour reply. ..