Issues with cancellation of hire purchase agreement - Motonovo Finance

[Carfinanceissue]

Hi guys,

I'm having repeated issues with Motonovo finance who I believe have acted unreasonably during the voluntary termination of my hire purchase agreement.

Summary of facts

• Car purchased in Feb 11 with approx 36k on the odometer on a hire purchase agreement basis.
• Car VT'd to Motonovo 31st Dec 13.
• Inspection report queried due to excessive mileage charges. Issues with bodywork also queried. Inspection reports total figure of £2872.45 with mileage charges totalling £2382.75
• Letter received from Motonovo indicating that car has been sold and the outstanding balance now stands at £1954.64, offering a 20% discount if paid within 7 days and confirming if not the balance will be passed onto DWF.
• Letter sent back to Motonovo asking why the inspection report issues were not discussed in their recent letter and requesting how these charges are enforceable under the CCA1974.
• Letter received from DWF confirming they are acting on behalf of Motonovo wishing to recover the balance of £1954.65 in full and enclosing a proof of expenditure form.
• Phone call with Motonovo finance - agent confirmed damage to vehicle 'was only a couple of hundred quid and could easily be knocked off'. Queried that the mileage charges were unreasonable and did not represent accurately the losses they have incurred. That a more accurate way of representing this would be to look at differences between contracted mileage (i.e. vehicle value at 81k and the vehicle value at the actual 97k).
• Letter received from Motonovo finance confirming they would be willing to offer the above difference in vehicle valuations but I rejected.
• Wrote back to confirm I did not reject and look forward to receiving their revised proposal.
• Letter sent to DWF to confirm that I am corresponding directly with Motonovo.
• Letter sent to Motonovo asking why my account is showing as defaulted and asking for copies of the default notices in accordance with the CCA. Querying why the account is showing as defaulted when the inspection report was queried and despite their letter offering difference in vehicle value to which I received no response.
• Letter received from Motonovo confirming that they have followed due process. Confirming that the vehicle was inspected and I was informed of the outstanding balance. Referring to a letter sent to me 5th Feb which indicates that the current liability stood at £2872.45 but would be reduced to £2585.21 if paid within 4 days of the letter. Letter confirms that if payment was not received within 30 days of letter this would result in the agreement being terminated with default liability. (Letter marked in italics above was sent within timeframe so as to avoid this from occurring). That they do not have to issue a default notice in accordance with CCA as the agreement has already been VT'd.

Any help appreciated in respect of the below queries......

Queries are as follows:

• The initial inspection report was queried due to the car already being damaged at the time the vehicle was purchased. This has been completely disregarded in any further communication.

• The mileage charges were queried upon receipt of the inspection report. A further letter from Motonovo indicates that they would be willing to negotiate a difference in vehicle value as a settlement. Despite my response inviting a revised proposal no response has been forthcoming.

• My credit report account has been placed as defaulted despite the inspection report being queried. The Report shows as being in default prior to the vehicle actually being sold and the balance showing on the credit report shows the mileage charges only £2382.75. The account is continuing to show as being in default of £1955.65 despite me attempting to query the charges on multiple occasions.

• Motonovo did not issue a default notice in respect of the balance they have been chasing and have confirmed that there is no requirement to do so once the account has been voluntarily terminated. I am unsure if this is correct as I presume the outstanding liability keeps the agreement active and therefore the express terms of the contract and the implied implications to serve a default notice active until such a point as the voluntary termination is accepted by Motonovo?

Thanks in advance.

[Wombats]

Re: Issues with cancellation of hire purchase agreement - Motonovo Finance

What was the total amount of credit advanced to you?

What did you pay for the car?

How much had you paid in monthly payments PLUS any deposit (including part ex)?

Were you up to date with payments?

How much remained on the finance at the time you VT'd it?

The agreement is terminated at the time specified in your VT letter (normally 14 days). Have a read here:

http://www.legalbeagles.info/forums/...r-the-CCA-1974

[Carfinanceissue]

Re: Issues with cancellation of hire purchase agreement - Motonovo Finance

Thanks for the quick response Wombats,

The total borrowed was £12,182.07 which included negative equity from a previous agreement with Motonovo.

I had £5114 remaining on the agreement at the time the car was returned so had paid £7068.07. Every payment was paid on time.

As the agreement has been cancelled under my statutory rights, what procedure do they have to follow in issuing a default against the account if the contract is no longer in force? This was not repudiatory breached at any point.

What was the total amount of credit advanced to you?

What did you pay for the car?

How much had you paid in monthly payments PLUS any deposit (including part ex)?

Were you up to date with payments?

How much remained on the finance at the time you VT'd it?

The agreement is terminated at the time specified in your VT letter (normally 14 days). Have a read here:

http://www.legalbeagles.info/forums/...r-the-CCA-1974

[Wombats]

Re: Issues with cancellation of hire purchase agreement - Motonovo Finance

They can't issue a default - there's no agreement against which to issue one, you terminated it when you VT'd the car.

The discussion point really is the amount outstanding. You would have paid enough to just hand the car back and walk away I imagine (the figure is written on the HP agreement). If the damage was there when you bought the car I would not pay for that. All the legislation states is that the vehicle must be 'in reasonable condition for its age' - this is very vague, and it is really up to you and the finance company to negotiate something mutually acceptable. Just bear in mind they will try to fleece you for every penny they can get from you. You ideally just want to walk away paying nothing more. Somewhere between those two standpoints lurks reality, though I think this should be nearer your side than theirs - that has always been my experience of VT's.

Did you read the linked thread?