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

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.

[give use a kick]

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

I phoned the finance company to tell them that I wanted to vt my car.
They have sent me a letter very similar to the ones on this thread. They have asked me to sign it & return the v5 log book.
Shoild i return the v5 or not. Also will Vt have a negative affect on credit score.

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

Stormycat - don't sign a condition report unless you're happy to do so. If you do, take detailed photos with a copy of that day's newspaper in them to verify the date.

Mr Shanahan - you can VT at any time. Your agreement should state a sum due to be repaid (including any deposit). That is the stage at which you have repaid the debt and can stop paying. The advantage of VT'ing before the halfway stage if you are struggling is that the debt can be put in with other debts in a DMP, so could be significantly reduced and possibly pave the way for a later F&F settlement.

[Mr.Shanahan]

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

Hi, this may have been overhead elsewhere. At what stage in the VT are you able to stop making payments?

[stormycat2010]

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

Hi, could I have some advice please regarding a VT. I have a Peugeot 207 that I bought under HP from a Peugeot Dealership less than 2 years go. It had 22,000 miles on the clock when purchased and now has 28,000. I have been advised that it has an engine fault and needs a new engine. I have processed a claim through the Finance Company who are seeking assistance from Peugeot with this on the basis that this cannot be down to user error as I have done a low mileage and the car has a full Peugeot service history. I have requested a VT and have been given a figure to bring the payments up to the 50% mark. My only concern is that the Finance Company have advised I will need to sign the Condition Report and that I will remain liable for any repairs to the vehicle until the vehicle is checked. In the Finance Contract the only comments re condition is that I must have taken reasonable care of the vehicle. Is it my responsibility to prove anything further, or is it up to the Finance Company to prove negligence on my behalf? Obviously I don't want to end up with a huge repair bill when I don't consider that there is anything I could have done to prevent the engine problem, or alternatively, anything that I have done to have caused it. It would be good to know where I stand - all comments very welcome.

[mrsjbrooke]

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

continued..
to get out of these charges (again for 2 scratches and a bumper scuff - they considered the missing key, on a 9 year old car caused by any one of the 4 previous owners).

Thanks for any advice.

[mrsjbrooke]

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

Hi, a quick update. After speaking to the finance company about the damage they have agreed it is excessive and offered to reduce it to £136.40 or £122.76 if I pay within 4 days I am still reluctant to do this but as I don't have the original report from the dealer (they don't keep them over a year) it seems its my word against theirs. I would just appreciate some clarification on the letter they sent me:
'From the inspection report you signed (didn't sign to agree anything and even got them to write I dispute all charges) to agree to the damages required and the items returned to us, there is a liability due under your Agreement to finalise the payments under your Voluntary Termination.' It then goes on the list the charges I mentioned. Followed by 'We must advise you that failure to make the payment within 30 days of the date of this letter will result in the Agreement being noted as terminated with default liability and could affect your ability to obtain finance in the future'. It also states something about liability may be further reduced after the proceeds following the sale of the car have been credited to the agreement. Are they holding my credit file hostage here? Is there no way

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

Well done - I'm pleased for you. They know they're on a dicey wicket too, as they know full well they shouldn't ask you to sign stuff after the agreement is terminated.

[Paulr83]

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

sorted now, the customer service manager phoned me back after i sent him all of the info re condition report when purchased and explained all the points id made, they have accepted the £200 i offered to close the case!

Learnt a big lesson here though... SIGN NOTHING!!!

thanks for all your help guys

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

The act is clear. It says that the owner only has to have taken “reasonable care” of the goods(section 100). So the condition it was in at the offset does not enter the equation. As for signing an agreement to improve the condition of the car, they should be reminded that the act does not allow contracting out (section 173) it says "reasonable care", not pristine condition.

Really it is up to you. You have two choices I think. One is to tell them where to stick their fees and just pay up to the 50% point. The second is to pay what you deem to be reasonable, and let them take you to the small claims court if they think otherwise.

I think there is little else you can do.

[Paulr83]

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

another day, another update...

ive called them to discuss their reasons for not wiping any charges,

theyre saying they dont believe the car has been handed back in satisfactory manner, when presented with info above from BVRLA they dissmiss it as "thats how the auction company deal with it when doing the appraisal"

when asked about the proof that was sent to them about damge on the the car when it was bought they say "why has that only been shown now that the damage report has been carried out", i asked them again if they asked for a report on any damage on the car when it was bought they answered no.

i said ive bought it in used car condition and that the condition was reflected by the price. they say their case is closed, i offered to pay £200 of the £437.85 but theyre not having that either.


what do i do next???

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

That's what I was trying to say in posts 101 and 103. You expect age related damage and should not be charged for this. Major damage which was there and reflected in the price when you bought it, ask for the receipt to prove they repaired it - you know they didn't, they just put it through the auction as it was.

Pay reasonable age related damages, but nothing else.

It's the problem so many hit when they think they have to sign documents from the company - they don't and shouldn't.

[Paulr83]

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

think this is the answer to my prayers...

Why do we have end of contract charges?

All leasing companies in membership are obliged under the BVRLA Code of Conduct to trade fairly and responsibly in all dealings with their customers. End-of-lease charges reflect the loss of value in the vehicle to the leasing company when it is returned in a poorer condition than originally contracted and / or achieves a decrease in value as a result of a failure to use, maintain and look after the vehicle and its equipment. The leasing company will not necessarily carry out any damage repair or refurbishment prior to selling the vehicle

taken from http://www.bvrla.co.uk/Advice_and_Gu...standards.aspx

[Paulr83]

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

ive now had a letter from them saying the following...

a balance of £625.50 remains on this account from the damage to our vehicle as detailed on the manheim vehicle inspection on 15/3/13, which you witnessed.

you also signed the voluntary termination form on 22/3/13 agreeing to pay any repair costs withihn 10 days or legal action may follow to recover this balance.

we are continuing to report this default to the uk credit reference agencies and may affect your ability to obtain credit in the future.

it goes on to say theyll apply a 30% reduction bringing it to £437.85

so where does this leave me now??? The form sent with the voluntary termination pack stated it had to be signed and sent back (no mention of things stated in this thread saying it doesnt legally need to be signed) and i have a copy of the report from the auction but nothing on there says who its to be paid to or how to pay it, even though i called them upon my return to work to appeal the bill and sent the report detailing the damage that was on the car prior to me buying it. i then never heard anything back from them for well over the 10 days!

this is seriously stressing me out now

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

You need to be as stubborn as they're being and simply state you have proof the damage was there; this was reflected in the price of the vehicle so you will not pay for that repair. Everything else is purely to be consistent with a car of its age.