Voluntary Termination of Car Finance via PCP - Guidance Please

[LadyBanker]

Hi

I am an Executor for my late Father-in-Laws estate and I am trying to examin the options regarding a car that he obtained via a PCP agreement 3 years ago (at the age of 82).

Originally the company suggested that I surrender the car to them, they would sell and the estate would be liable for any difference between the sale proceeds and the outstanding agreement (including the final balloon payment). This is nearly £6K and there is no way that a three year old Fiat Panda would achieve this much at sale (current value from a car buying site around £3.7K)
There are no family members who would wish to buy the car from the estate as it is not worth the amount still owed.

I have been reading a number of threads regarding voluntary termination and sent the recommended letter to the finance company, however have just received a response to say that only the debtor can trigger the voluntary termination and nobody else. Can this be right? I cant understand how the executors (or even the estate) should be able to negotiate a more costly end to the agreement than the original debtor given that he has passed away.

Are they just trying to be difficult to avoid the loss themselves or is this correct? All advice gratefully received. Many thanks

[LadyBanker]

Re: Voluntary Termination of Car Finance via PCP - Guidance Please

Hi, I would just like to say a big thank you for the advice given. It has been a slog but the firm finally admitted that the Executors had the right to request a Voluntary Termination and the car has now been returned.
I will still pursue my formal complaint against the company for their deliberate attempts to mislead and when we get to the 8 week stage, I'm going to the financial ombudsman.

Thanks again - I couldnt have done it without your guidance

[R0b]

Re: Voluntary Termination of Car Finance via PCP - Guidance Please

This is good news and I don't blame you for pursuing your complaint and I would also push for a small amount of compensation for their unreasonable behaviour and dragging their heels in refusing to accept the VT notice. It sounds as if they were simply intent on trying to recover as much money as possible hence them saying that he car must be surrendered.

I hope you have got it in writing that they have admitted their wrongdoings as that will be evidence if you take it to the Financial Ombudsman.