Voluntary termination

[irnbrukid207]

Re: Voluntary termination

Again, please refer to your legal contract, of which I have attached the highlighted section – if you wish to hand the vehicle back and not pay your termination figure this is a voluntary surrender, of which you will need to document accordingly, however, as previously advised, you would be liable for any balance and charges outstanding.

The vehicle will remain in your possession until this is adhered to correctly, I would ask you to send me in writing the section of legislation you are referring to, you are correct in that you can voluntary terminate the contract at any time, however, again, the contract stipulates you must pay the additional amount required for you to walk away(1/2 of the total payable). You cannot terminate and agree a payment plan, as this clearly states.

If you disagree, please consult with the necessary trading standards office, I must advise if your agreement falls into arrears and your agreement has not been resolved, we would issue you with a notice of default, and if not satisfied, your contract and your rights would be formally terminated.

Please advise in writing which part of legislation you are referring to and I will raise this with my Line Manager.

Please refer to legislation 100 section 1 of the consumer credit act

100 Liability of debtor on termination of hire-purchase etc. agreement.
(1)Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99 the debtor shall be liable, unless the agreement provides for a smaller payment, or does not provide for any payment, to pay to the creditor the amount (if any) by which one-half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before the termination.

[irnbrukid207]

Re: Voluntary termination

Then I got this email as well

Please see this link to a citizens advice website.

http://www.adviceguide.org.uk/wales/debt_w/debt_borrowing_money_e/debt_types_of_borrowing_e/hire_purchase_and_conditional_sale.htm

Your right to end a hire purchase or conditional sale agreement
You can end (terminate) a hire purchase or conditional sale agreement in writing and return the goods at any time. This can be useful if you can no longer afford the payments or you don't need the goods any more.
You will have to pay all the instalments due up to the time you end the agreement. If your payments come to less than half of the total price of the goods, you may still have some money to pay as the lender is entitled to this amount under the agreement. If you have already paid more than half of the price when you end the agreement, you can't get a refund but you usually won't have to pay any more.
If you are not sure whether you still owe anything, check the original credit agreement which should show the total price of the goods and the amount you must pay if you end the agreement. The credit agreement is the legal document you signed when you bought the goods.
Lenders sometimes say you must pay the whole amount owed under the agreement before you can end it. This is wrong. If this happens, you can get help from an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.

[irnbrukid207]

Re: Voluntary termination

And last one today

924.20 is the payment required – let me know what you come back with, I’m not trying to be awkward with you, we cannot process the request without half the contract being paid.
Have a good weekend and see what you can sort.

[Guest]

Re: Voluntary termination

And last one today

924.20 is the payment required – let me know what you come back with, I’m not trying to be awkward with you, we cannot process the request without half the contract being paid.
Have a good weekend and see what you can sort.

Well we have the CAb guidance, the national debtline guidance, Lacors. The fact that the notice is included within the default notice, which as the name implies can only be issued whilst the account is in default.

The unambiguous wording of the cca section 99, there is also some case law which proved that the vt is legitimate even if requested within the default notice period.
I will dig it up for you and draft a reply.

[irnbrukid207]

Re: Voluntary termination

Thanks Andy, am not sure what to reply to them now am out my depth I think, cheers

[Guest]

Re: Voluntary termination

Then I got this email as well

Please see this link to a citizens advice website.

http://www.adviceguide.org.uk/wales/debt_w/debt_borrowing_money_e/debt_types_of_borrowing_e/hire_purchase_and_conditional_sale.htm

Your right to end a hire purchase or conditional sale agreement
You can end (terminate) a hire purchase or conditional sale agreement in writing and return the goods at any time. This can be useful if you can no longer afford the payments or you don't need the goods any more.
You will have to pay all the instalments due up to the time you end the agreement. If your payments come to less than half of the total price of the goods, you may still have some money to pay as the lender is entitled to this amount under the agreement. If you have already paid more than half of the price when you end the agreement, you can't get a refund but you usually won't have to pay any more.
If you are not sure whether you still owe anything, check the original credit agreement which should show the total price of the goods and the amount you must pay if you end the agreement. The credit agreement is the legal document you signed when you bought the goods.
Lenders sometimes say you must pay the whole amount owed under the agreement before you can end it. This is wrong. If this happens, you can get help from an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.

You could always contact the CAB of course as suggested, they are the front office for the FCA these days and may be very interested in the way that this particular creditor is misleading people, not to mention that he is foolish enough to put his misconceptions in writing.

[irnbrukid207]

Re: Voluntary termination

Should I reply to them, and continue to stick to my guns

[Guest]

Re: Voluntary termination

You can send this if you like or as said you could contact the CAB or both

Regarding your recent correspondence, I can confirm that the agreement will be terminated under the requirements of section 99 of the consumer credit act.
For your informati0on the section reads:
9 Right to terminate hire-purchase etc. agreements.
(1)At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement.(My emphasis)

I am aware that there may be sums outstanding post termination, and this matter will be addressed, however there is no requirement for payments to enable the termination, the only requirement under the act is written notice, which I have already provided.

For avoidance of doubt please consult the OFT guidance, the guidance available from the CAB, National Debtline, Locars etc.
For your convenience from the CAB website/ OFT 761/Locars

"In our view the statute is clear in that the consumer must terminate in writing and when that is done he is the liable to pay the suns due under the agreement".

“If you are not sure whether you still owe anything, check the original credit agreement which should show the total price of the goods and the amount you must pay if you end the agreement. The credit agreement is the legal document you signed when you bought the goods.
Lenders sometimes say you must pay the whole amount owed under the agreement before you can end it. This is wrong. If this happens, you can get help from an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give “advice by email, click on nearest CAB."

LOCARS says....

Consumer Credit Act 1974
Section 99 of the Consumer Credit Act gives the debtor the right to terminate a hire purchase agreement, simply by giving written notice of termination. The right to terminate applies at any time before the final payment becomes due, unless the creditor has already terminated. Contrary to the line taken by many finance companies, the debtor need not have paid half the total amount payable, and nor do they have to pay any arrears, before exercising the right to terminate.
Sections 99 and 100 set out the debtor's liability on voluntary termination. The sections are complex, but their main effect can be summarised in brief as follows. If the sum of payments made and arrears before termination exceeds 50% of the total price, than the debtor is only liable to pay the arrears. Otherwise, the debtor is liable to pay half the total price, less any payments already made.

Regarding your remarks about the contractual terms:
You will be aware that it is not possible to contract out of statue by means of a contractual term, in the CCA 1974 this is endorsed in section 173:
173 Contracting-out forbidden.
(1)A term contained in a regulated agreement or linked transaction, or in any other agreement relating to an actual or prospective regulated agreement or linked transaction, is void if, and to the extent that, it is inconsistent with a provision for the protection of the debtor or hirer or his relative or any surety contained in this Act or in any regulation made under this Act.
It is therefore not relevant what stipulations exist in the agreement in this regard.

Finally and to repeat, the agreement will be terminated on xx/xx/xxxx. I have given ample notice and you have yet to arrange for collection. I remind you that after this date I will no longer be responsible for the vehicle and recommend you enable its recovery

[irnbrukid207]

Re: Voluntary termination

Thanks Andy, ill send that so they get it Monday morning, ill let you no how it goes, cheers

[Guest]

Re: Voluntary termination

Thinking about this, they now all this anyway. It may be an idea just thanking them for the confirmation that they have received the termination request and informing them that you will be forwarding their response to the trading standards.

It is up to you really

[irnbrukid207]

Re: Voluntary termination

cheers Andy, can you contact trading standards online, am guessing they are just trying to force me in to
voluntary surrender which is more money for them

[Guest]

Re: Voluntary termination

cheers Andy, can you contact trading standards online, am guessing they are just trying to force me in to
voluntary surrender which is more money for them

http://www.adviceguide.org.uk/englan..._standards.htm

[Guest]

Re: Voluntary termination

I would send the letter anyway, be interesting to see what they say, also mention that you have informed CAB about their behavior in this.

I am curious to see why they are so opposed to the VT in this case. Is it possible for you to put your figures on here.

Or copy your agreement, how much is your car currently worth ?
it would be interesting to see what the financial difference is between the VS and the VT.

[irnbrukid207]

Re: Voluntary termination

Sure I'll put the figures on later Andy when am home, cheers

[irnbrukid207]

Re: Voluntary termination

The figures are below, its high interest finance on a small van, looking at it now I must have been mad to take it.

1, Total price £3600
2, Deposit £1000
3, Credit £2600
4, Interest £1533.60
5, Doc Fee £99
6, Acceptance Fee £595
7,Option to purchase fee £125
8, Total charge for credit £2352.60
9, Total payable £5952.60
10, Balance payable £4952.60

1st payment of £230.35 then 34 instalments of £131.35 and final instalment of £256.35
36 months, rate of interest 16% p.a fixed and APR 60.59%

Figures are :- Deposit paid £1000
Payments to date £1052.10

VT Figure £2976.30

Shortfall £924.20