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

[cheekal]

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

Hi
Just voluntarily surrendered car
Finance company want to charge me for having non run flat tyres
Can they do this

[oneway]

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

Hello ,
I am considering VT.
Just one question that I am not sure of:
My agreement with the finance company on a used car is on Contract purchase over 48 months of which I am 24 months in.
After the 48 months there is an option of paying approximately £4000 if I wish to keep the car or give it back if I don't .
Is the magic 50% mark half the 48 month contract (my current position) or do they add the final payment option ( £4000) to work out the 50% figure for me to proceed with VT ?
hope you can help
Cheers

[LadyBanker]

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

I am an Executor for my late Father-in-Laws estate and I am trying to examin the options regarding a car that he obtained via a PCP agreement 3 years ago (at the age of 82).

Originally the company suggested that I surrender the car to them, they would sell and the estate would be liable for any difference between the sale proceeds and the outstanding agreement (including the final balloon payment). This is nearly £6K and there is no way that a three year old Fiat Panda would achieve this much at sale (current value from a car buying site around £3.7K)
There are no family members who would wish to buy the car from the estate as it is not worth the amount still owed.

I have been reading a number of threads regarding voluntary termination and sent the recommended letter to the finance company, however have just received a response to say that only the debtor can trigger the voluntary termination and nobody else. Can this be right? I cant understand how the executors (or even the estate) should be able to negotiate a more costly end to the agreement than the original debtor given that he has passed away.

Are they just trying to be difficult to avoid us using the voluntary termination protection under the CCA or is this correct? Any help gratefully received. Many thanks

[R0b]

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

Who is the lender? It seems as they are being a little silly by simply claiming that the only person who can terminate the agreement is the original debtor! Surrendering the car can only be done by the original debtor so they can't simply pick and choose what rights you will and wont have!

As the executor of the the estate, you would therefore have the authority to act as if you are in your father-in-laws shoes.

I would suggest writing a formal complaint to the lender and enclosing a copy of the letter you sent to them originally explaining that you have the power to exercise the right to VT and their suggestion that only the original creditor can do this is not only inappropriate but also impossible. You should re-iterate that the date of termination would have been the date of the letter (if you said immediate termination or whenever the date you gave). Remind them that they have 8 weeks to provide a final decision and if they fail to do so or you are not happy with the final response, you will take it to the Financial Ombudsman.

[LadyBanker]

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

Hi R0b

The lender is FCA credit and agree it is inappropriate (and offensive) to state that they can only deal with the debtor. I will follow up with a letter of complaint as suggested. Many thanks for the advice, lets see how it goes.

[Dannystew80]

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

Hi just after some advice please. Just came to the end of my first PCP with Peugeot. Paid the last payment then they came to inspect the car and "found" over £400 worth of "damage" on the car most of which i would class as wear and tear on a three year old car having done 40,000 miles. Just wondering if i will be able to contest the bill??

Any advice would be greatly received.

[adaw]

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

Hi - forgive me if this is in the wrong thread (please tell me too!). I'm very confused - I have an HP agreement which I would like to get out of as I've moved and am caning the miles. My fault, I know...
The issue is that the finance company are saying that half the amount payable is £12,993.06 and I can't see how that can be right. I'm exactly 2 years through a 3 year agreement. I've paid £7200 (£300 per month) so they reckon I still have to pay another £6000 ish. That doesn't sound right to me as that would take me well beyond the year I have left!

The cash price was 24,145 inc vat
advance payment 7,500
amount of credit 16645
charge for credit 1841
total amount payable 25,986

half the total amount payable (it says in the section headed "termination") is £12993. Is that right? Shouldn't it take off the £7500 advance payment?

They are also saying I will have to pay off all of an additional insurance plan valued at £1008.

Please advise - many thanks,
Adam

[Amethyst]

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

The half is the £12993 but your payments include the £7500 advance payment so you'd need to have paid £6k odd in your monthly payments which you have more than done by the sounds of it... could you redact and post the contract in case there's any weirdness in it. [MENTION=71570]R0b[/MENTION]. Ahhh dedicated thread http://legalbeagles.info/forums/show...t-payable-quot

I don't know about the insurance - if that's a separate contract will need to see a copy of that too

[adaw]

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

[QUOTE=Amethyst;718313]The half is the £12993 but your payments include the £7500 advance payment so you'd need to have paid £6k odd in your monthly payments which you have more than done by the sounds of it... could you redact and post the contract in case there's any weirdness in it. @R0b. Ahhh dedicated thread http://legalbeagles.info/forums/show...t-payable-quot

I don't know about the insurance - if that's a separate contract will need to see a copy of that too

Many thanks for the speedy reply!I have attempted a rough photo but can scan tomorrow if necessary. I think the 7500 comes off the £18500ish total amount and the result is then halved...

[Amethyst]

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

It is 50% of the total amount payable and includes the deposit ( or advance payment )

Insurance is the bit on the right hand side £1k total payable? via £15 a month then £442 after 37 months ?

You've been paying £300 a month which is presumably the £15 for that and the £288 for the car. So on the vehicle VT bit you could only use the £288 portion so £6912, then the £7500 advance so still well over the VT amount (by £2k) if you're 24 payments in.

I don't know why the total doesn't add up tho - the final payment of £8k odd takes it £2k over the total payable ( £25274 )

Hang fire till [MENTION=71570]R0b[/MENTION] is about as he's the man in the know - it would help if you can do the full agreement and relevant VT terms though.

When you spoke with them did you make it clear you wanted to VT and hand the car back , not just settle the agreement ?

[adaw]

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

It is 50% of the total amount payable and includes the deposit ( or advance payment )

Insurance is the bit on the right hand side £1k total payable? via £15 a month then £442 after 37 months ?

You've been paying £300 a month which is presumably the £15 for that and the £288 for the car. So on the vehicle VT bit you could only use the £288 portion so £6912, then the £7500 advance so still well over the VT amount (by £2k) if you're 24 payments in.

I don't know why the total doesn't add up tho - the final payment of £8k odd takes it £2k over the total payable ( £25274 )

Hang fire till @R0b is about as he's the man in the know - it would help if you can do the full agreement and relevant VT terms though.

When you spoke with them did you make it clear you wanted to VT and hand the car back , not just settle the agreement ?

Many thanks - please see attached - slightly clearer!
I did explain that I wanted to hand the car back and I'm waiting for them to send me a letter with details of how much is outstanding. They said that will take 7-9 days to get to me. My assumption is that I should add the £16,645 to the £1,841 and then half that amount to get the all important figure (which would make it £9243). I have paid £6912 so would need to find another £2300 to get out. That still would take me very close to the end date of the agreement anyway though...?

[adaw]

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

ah, but now I see what you're saying....so the halfway amount is £13k but when you add my £7500 initial payment and my £6912 I am already over...

[Amethyst]

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

so the halfway amount is £13k but when you add my £7500 initial payment and my £6912 I am already over...

Yes

That's much clearer - so in your agreement it does say £12993 which is half £25986 ( the total amount payable ) which is correct.

You've paid 24 months ( check on your statements as you may have had a 1/2 month break at the beginning? ) but by my calcs (for what they are worth) you have more than covered your 50% VT.

10094.97+288.42+8103.00=18486.39+£7500=£25986.39 ( just checking and yes now I can read the numbers it does add up fine )

I don't know what the insurance is, payment insurance? that will need paying in full as far as I am aware as its not included in the VT. I don't know how that is worked out from what you have paid - you've paid 24 payments of £15.73 presumably - so will have the other 11 of those plus £442.03 left to pay. I don't believe they can use anything over the 50% on the car side to pay the insurance side, anything paid over the 50% on the car side is lost ( just my understanding of it).

[adaw]

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

That's fantastic news....many thanks for your help - greatly appreciated.

[Amethyst]

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

Let me know when you get the letter confirming it (or not) from the finance co xx