When can I cancel my Direct Debit when doing a VT?

[sgtberbatov]

I've just drafted my voluntary termination letter (using the helpful template) and plan to post this tomorrow (9th May). On the letter I have stated that I intend to cancel the contract on the 10th May, and I've paid well over 50% of my agreement. The car is under a PCP agreement with PSA Finance.

However, I'm not sure when to cancel the direct debit? I thought I could cancel the direct debit on the 10th May, in line with the termination date of my letter, but then I've seen some talk about it that I shouldn't cancel the direct debit until after the car is collected, otherwise I'm defaulting on the agreement and it'd cause no end of problems.

When should the direct debit be cancelled? On the date of termination stated in my letter, or only after the car has been collected?

[R0b]

Re: When can I cancel my Direct Debit when doing a VT?

You should be able to cancel the DD from 10 May as your letter indicates. Nothing in the CCA suggests you have to give a minimum notice period but to simply give notice. You could alternatively simply say the contract will be terminated with immediate effect and then the postal rules will apply so for example if sending by first class then it would be terminated the next working day. Equally if you send by email before 4pm on the same day, termination would take effect that day.

If you are really worried, give it a couple of days but I can't see any reason to cancel it unless your coming close to the next payment due date.

[karlfr]

Re: When can I cancel my Direct Debit when doing a VT?

You should be able to cancel the DD from 10 May as your letter indicates. Nothing in the CCA suggests you have to give a minimum notice period but to simply give notice. You could alternatively simply say the contract will be terminated with immediate effect and then the postal rules will apply so for example if sending by first class then it would be terminated the next working day. Equally if you send by email before 4pm on the same day, termination would take effect that day.

If you are really worried, give it a couple of days but I can't see any reason to cancel it unless your coming close to the next payment due date.

i will be starting the process on the 22/05. I have done a draft email stating termination with immediate effect so that will be sent in the morning.

ideally i would prefer them to collect the car the following week as i am off work. but i think i will just stick with the 14 days from email as i dont want to risk the payment going out on the 1st june. I know its cutting it close but i dont get the replacement car until the 31st so want to try and get it as close as possible