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

[labman]

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

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

[labman]

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.

[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

[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.

[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.

[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?

[labman]

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.

[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.

[labman]

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

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. ..

[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.

[labman]

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.

[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!!

[labman]

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: