Tweet
Hi, I've just joined and found the info i've read on this thread really helpful but could really use some advice on my situation. I have a HP agreement that I would like to VT as the vehicle is now 11 years old and is starting to need quite a lot of money spending on it and I am in negative equity. I've been advised that when I started a payment plan a couple of years ago, due to me not being able to make the original repayments they effectively cancelled my original agreement but let me keep the car and continue making payments so they are saying that I cannot terminate an agreement that has already been terminated. I didn't realise they had cancelled it, I was under the impression they had simply re-scheduled my payments. I'm really confused and stressed about it and I'm going around in circles. Any advice and help would be really appreciated.
Loading...
-
Tags: None -
Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974
In order to terminate they would have had to send you a letter saying they were not happy with you, then they would have served you with a default notice which told you how much you owed, and giving a minimum of 14 days to pay the arrears; finally they would issue a termination notice telling you the account is terminated.
Basically, if this process was followed, your account was terminated and you cannot VT it, as there is no agreement to terminate voluntarily. If it wasn't followed, then your agreement probably isn't terminated.
Do you remember getting these letters? :beagle: -
Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974
I don't remember getting letters, but if the agreement is terminated and I hand the car back to them, can they pursue me for any outstanding amount??Comment
-
Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974
Say the VT figure said you had to have paid £2000 and you'd paid £1500, you can still VT the vehicle, but you would be expected to pay (or be chased for) the £500 arrears.
The good thing about this is it ceases to be a priority debt if you have other debts, and so can go in with a Debt Management Plan spread over a number of years.
In this case, I would say it is important to establish whether or not the agreement was terminated properly. If it was terminated properly, and they let you keep the car, did you sign any new paperwork at all?
If it wasn't terminated properly, they will be able to pursue you for the figure stated on your original agreement as the VT figure, LESS any deposit paid and any payments made towards the car to date.
I hope that makes sense. :beagle:Comment
-
Re: Unusual VT Case
Hi, no further paperwork was signed by me since they 'terminated' my contract. I'm now in the process of writing to them asking if they have a copy of a signed re-scheduled agreement. If they can't provide me with one then I'll offer to hand the car back as a first and final offer and hope they take it!! Note to self: if I want something, save up for it, no more finance!!!Comment
-
Re: Unusual VT Case
I think you mean full and final offer.
Just be slightly careful. Try to work out how much you have paid them - would you be over that 50% mark? If you're not, they can still chase you for any amount in arrears if the agreement was not terminated.
Also, any re-scheduled agreement would need to be signed by you, otherwise what is to stop them writing one this afternoon?
Err on the side of caution for your own benefit. :beagle:Comment
-
Re: Unusual VT Case
Basically there are two options for a hirer termination, the voluntary termination under section 99, or a voluntary surrender.
In the case of a VT you will, on the return of the car be liable for all arrears up until the date of termination of the contract + the difference between half the total value of the contract and you total payments so far. In other words , if you have paid over half of the contract price then you will owe the difference between what you should have paid under the contract and what you actually have paid.
If you voluntarily surrender the vehicle you will have to pay the full value of whatever remains on the contract less any sums raised by them on the sale of your vehicle.
So you need to look at the original agreement and work out based on the approximate value of the car and how much you have paid which option is the best for you.
The third option is that the creditor may be willing to let you keep the car and accept a reduced payment arrangement for the balance of the sums due.
It all depends on whether you want to keep the car and the various figures involved.Comment
Comment