Voluntary Termination- added value products charge

[Natalie04]

[MENTION=71570]R0b[/MENTION]

Hi
Thanks I'm advance for the help.
I have read a lot of the threads around VT, however can't see any advice yet on my issue!

I have written using your wonderful template to VT my hire purchase. They company has written back and said I will owe £408 in value added products that will be due immediately. I presume this is gap, tyre and scratch insurance.

Can to advice is this is covered under the Cca with VT or do I indeed owe it?!

Many thanks

Natalie

[R0b]

Re: Voluntary Termination- added value products charge

@R0b

Hi
Thanks I'm advance for the help.
I have read a lot of the threads around VT, however can't see any advice yet on my issue!

I have written using your wonderful template to VT my hire purchase. They company has written back and said I will owe £408 in value added products that will be due immediately. I presume this is gap, tyre and scratch insurance.

Can to advice is this is covered under the Cca with VT or do I indeed owe it?!

Many thanks

Natalie

If the products have been incorporated into the HP agreement and are not under separate agreements, and assuming they have been incorporated into the total price payable, then you wouldn't be liable for them.

[Natalie04]

Re: Voluntary Termination- added value products charge

Hi [MENTION=71570]R0b[/MENTION]
Thank you for your reply.
I replied to there email and used one of your other templates to basically say I didn't owe anything under the cca and I trust this is the end of the matter. They never replied but the VT went ahead and the car was collected over a month ago now. The inspector reported no damage at all and said the car was in great condition.
From your experience how long after the collection could they still contact me trying to claim this money or indeed excess mileage! I'm wondering when I can feel safe'!!

Thank you

[R0b]

Re: Voluntary Termination- added value products charge

Hi Natalie,

Do you have a copy of that report? If so, I would suggest you hold onto it for as long as possible.

It is difficult to say because it varies from lender to lender. Some lenders will sell the alleged debt onto someone else whereas others simply give up after a while or may even record a default on your credit report, which is what I would be most wary of. In that case the ball would be in your court as to whether you take any action yourself or put up with a default wrongly recorded.

The three main credit agencies are Call Credit, Experian and Equifax. Call credit offers a free monthly report called Noddle if you haven't signed up to it yet which may assist you in checking to see if the agreement is record on there and if it is marked as settled or, if there are any adverse entries.

6 Years would be the absolute latest they can bring a court claim, so you should look to retain all correspondence for this period of time.

[andrewcane]

Re: Voluntary Termination- added value products charge

I am going through a voluntary termination with Black Horse and they have said they require the full amount for insurances - warranty, tyre, gap cosmetic protection, less any monthly payments made, which still amounts to around 1.3k, is this correct? Seems somewhat unfair as I've never used these insurances during the course of the agreement. Black Horse are saying that because they paid the Dealer up front for the insurances then they are entitled to full payment plus all interest.

[R0b]

Re: Voluntary Termination- added value products charge

I am going through a voluntary termination with Black Horse and they have said they require the full amount for insurances - warranty, tyre, gap cosmetic protection, less any monthly payments made, which still amounts to around 1.3k, is this correct? Seems somewhat unfair as I've never used these insurances during the course of the agreement. Black Horse are saying that because they paid the Dealer up front for the insurances then they are entitled to full payment plus all interest.

Hi Andrew, without seeing the agreement I cannot say for certain whether it is owed however, lenders tend to combine insurance within the same agreement and form as part of the total amount payable under the agreement. If that is the case then Black Horse would not be entitled to the remaining insurance. Equally, if the amount is paid upfront and in full then a rebate is usually given less an admin charge (if applicable) which is based on the months not used.

Were you paying for the insurance together with your monthly instalments under one direct debit? That may point towards the insurance being part of the total amount payable. If you signed a separate agreement and set up a new direct debit, that would more than likely indicate that you owe the remaining insurance subject to what the terms and conditions say.

[andrewcane]

Re: Voluntary Termination- added value products charge

Thanks Rob,

It's all bundled up in one document and a single monthly payment is made, would you like to see the document?

Cheers,

Andrew

[R0b]

Re: Voluntary Termination- added value products charge

Yes please, make sure to redact your personal info

[andrewcane]

Re: Voluntary Termination- added value products charge

Agreement attached - Thanks Rob

- - - Updated - - -

Ignore the stars

[R0b]

Re: Voluntary Termination- added value products charge

Hi Andrew,

From reading that I am making the assumption that you paid the insurance and monthly instalments under one direct debit. Is there any specific terms under the agreement that reference the insurance products?

The insurance and monthly instalments appear to be combined and in my mind would fall under the 'total price payable' under the agreement, albeit they look separated on that document you have uploaded. Its really about the substance not the form when you determine how the agreement is set up e.g. just because the agreement shows an insurance product which appears separate, doesn't mean to say it is and it is arguable that it forms part of the total price payable.

How much have you paid altogether under the agreement? I can also see that under the "Termination: Your Rights" heading it says once you have paid £6,208.90 then you will pay nothing more. It doesn't appear as if they have factored in the insurance product.

Best case scenario, you can point to that as your reliance that you owe nothing further or worst case, you argue that the total insurance cost is added to the total price payable and you pay 50% of that (if you haven't already met that amount).

I can't really say for certain that you don't owe it as I haven't seen the rest of the terms of the agreement but based on what I can see, there is reason to argue that the agreement says you don't owe anything further as per the Termination: Your Rights clause.

[andrewcane]

Re: Voluntary Termination- added value products charge

Great Rob, shall I send the full terms in order for you to provide a definitive response?

Cheers

Andrew

[Natalie04]

Re: Voluntary Termination- added value products charge

Thanks again [MENTION=71570]R0b[/MENTION]
Well I heard from them and 11 weeks after collecting the car they have asked me for £70 as a collection fee. I used the template to refute this, however they sent me back a copy of my agreement and in the small print it does say a charge of £70 will be applied for collection on any VT. I presume then in your opinion I need to pay this?!
Thank you

[R0b]

Re: Voluntary Termination- added value products charge

From a legal standpoint, my view is no you do not. your liability is capped at 50% of the total amount payable which means everything. S.173 of the CCA also says that if a contractual term is inconsistent with your rights or liabilities under the CCA then it will be deemed void and unenforceable - that goes for collection fees too.

However, if you want to pay up to get rid of the matter then it is up to you.

[Natalie04]

Re: Voluntary Termination- added value products charge

Thank you [MENTION=71570]R0b[/MENTION]
Another month and another letter from them. This time it is to claim excess mileage, collection charge and added value products! So they have ignored everything i have said upto now! I have replied immediately denying charges again. However I was wondering, do you know any positive outcomes that anyone has had, in denying charges?! I just keep reading stories on here of people having trouble and having to pay in the end!!
thank you

[R0b]

Re: Voluntary Termination- added value products charge

Who is the lender Natalie?