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

[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!

[labman]

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

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.

[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

[labman]

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:

[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.

[Guest]

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.

[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

[labman]

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

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

[labman]

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

You are terminating the agreement (may already have terminated the agreement?) which is not what the letter states. If terminated, state vehicle is ready for immediate collection (make sure you've photographed with that day's paper for condition), and the address from which you want it collected, with contact details so you're there.

Personally I wouldn't sign it. You are in control of this, not them. If vehicle is available immediately, it's reasonable to expect them to collect it with 14 calendar days or you will charge storage at £x.xx per day (they won't agree to this, but it feels good!)

[alastairweller]

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

Thanks again.

I've already written to them (last Monday 7th) giving 14 days and in response they sent this pack out. I agree that their wording seems to suggest that they are the ones issuing the termination.

I'll post back with how I get on.

Al

[djprance]

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

Can anyone tell me if the Finance company can in enforce excess mileage charges if you hand the car back with a VT ?

Does anyone know if a finance company can try and add excess mileage to a HP agreement when i try and VT the vehicle. They are claiming it is in their Terms and conditions but i was never shown this and the original garage i bought the car from have said they have no idea about it.

[labman]

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

If you did not commit to doing an average of say 10000 miles per year, as stated in some types of agreement, usually I think Contract Hire, then they can't. If it was a 'normal' car purchase HP agreement where you pay £xxx.xx per month and after 36 months it's your car, there is no provision for restricting mileage.

VT does allow for "Fair wear and tear," so I guess it could be argued if you have a two year old car with 90000 miles on the clock, this is not fair wear and tear.

If that doesn't answer your question, perhaps putting the situation into a more precise context for us would be helpful. :beagle:

[djprance]

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

Thanks for that. It is a straightforward HP agreement paying a set amount per month then the car would be mine. There is no mention of mileage allowance and it has termination rights after half paid which i have done already. Carlyle finance (Motonovo) are saying in their terms and conditions i was only allowed to drive 12000 miles per year which i have gone over and they want 15p a mile.
I have rung the garage i bought the car from and they have no idea about a mileage allowance on the HP agreement.
If i VT the car could i end up with a bill for excess mileage?