Voluntary Termination of car finance with Barclays

[BryanWalker]

Hi Everyone I read a post on here about exercising
my right to Voluntary terminate my car finance.

I sent the template letter to Barclays on the 2nd May telling them I am terminating the agreement and asking them to arrange to collect the car in 14days.

They responded with a letter asking me to sign paperwork telling them I want to terminate the agreement and that I accept liability for excess mileage, damage and collection charges.

I called them and advised told them I am not obliged to sign any paperwork and that on the 17th May I would be cancelling my insurance and tax then sending the v5 to the DVLA with Barclays as the new owner of the car. To which I was told if they don't receive the signed paperwork by the 19th May that they will assume that I want to keep the car and they will continue to charge me the monthly payments. Also that if I cancel my car insurance I am breaching my agreement.

I have already cancelled the direct debit as I foolishly hoped it would be a straight forward process.

Can somebody please tell me what I should do next.

Many thanks
Bryan

[Kati]

Re: Voluntary Termination of car finance with Barclays

tagging [MENTION=71570]R0b[/MENTION] (he's good at this sort of thing ) xx

[BryanWalker]

Re: Voluntary Termination of car finance with Barclays

Thanks Kati x

[Kati]

Re: Voluntary Termination of car finance with Barclays

Thanks Kati x

I'm sure he'll be along soon ... bear in mind that it's a weekend tho' (many of the Beagles are out and about) xx

[R0b]

Re: Voluntary Termination of car finance with Barclays

Hello,

First of all, you've given notice to Barclay's to terminate the agreement presumably effective immediately? That has then prompted Barclays to send out some VT letters requesting you to sign. That to me would indicate that they have read your letter about termination of the agreement but it is not a legal obligation (no is it generally in the terms and conditions) that to effect termination of the agreement, you must sign and return their paperwork.

Second, I find it amazing they can 'assume' that you want to carry on with the agreement when they already know that you have given notice of termination. This is just a typical lender's stance and typical information coming from an advisor on the telephone, they're either useless or have been instructed to say that at all times no doubt. Rather than threatening to cancel insurance and tax by 17 May, I would give them the benefit of the doubt and just ramp up the pressure with a letter along the lines of something below. It's a quick draft so you will need to amend it to suit your needs, I have also put some wording in square brackets which you may either want to include or exclude according to your situation.

-----------------------------------------------

Dear Sir or Madam,

Agreement number:
Vehicle Registration:

NOTICE OF INTENTION TO SELL GOODS UNDER SECTION 12 OF THE TORTS (INTERFERENCE WITH GOODS) ACT 1977

I am writing to you with reference to the above matter concerning my voluntary termination of the agreement. On [DATE] I wrote to Barclays notifying them of termination of the agreement effective immediately (a copy of which is enclosed) and to arrange collection within 14 days. I have since contacted Barclays on [DATE] and a customer service advisor [called NAME] confirmed receipt of my letter however [he/she] had insisted that I must sign Barclay's paperwork before collection can take place, or they will assume that I wish to continue with the agreement. I am rather surprised at how Barclays are able to make this assumption considering my letter giving notice had clearly spelled out immediate termination of the agreement. Indeed, this appears to be a typical tactic imposed by lenders to exert undue influence on debtors (particularly those who have little legal understanding of their rights) who wish to exercise their right to terminate the agreement.

Nevertheless, I have lawfully given notice to terminate the agreement in accordance with section 99 of the Consumer Credit Act for which I am now deemed an involuntary bailee who is in possession of Barclay's vehicle. There is no legal obligation for me to sign any documentation from Barclays following termination nor do I agree with the contents of it. Given the conversation I have had with [NAME / the customer service advisor], I can only assume that despite my request to collect the vehicle, Barclays is wilfully refusing to do so.

In the circumstances, I have no other choice but to you put you on notice that in accordance with section 12 of the Torts (Interference with Goods) Ac 1977, unless Barclays contact me to arrange for their vehicle to be collected by [14 DAYS FROM DATE OF LETTER], the vehicle will be deemed abandoned and I shall make arrangements for it to be sold at the nearest auction without further notice. I will no longer be liable for any losses incurred as a result but also, that I am lawfully entitled to deduct any costs associated with the sale of the vehicle [and in which case, as the vehicle is currently on my driveway, a charge of £10 per day shall be levied (beginning on the day after the date of this letter) until the vehicle is removed and has been sold]. Once the vehicle has been sold, I will contact you further to arrange for the remaining proceeds to be transferred to a bank account of your choosing.

The vehicle is available for collection from my address at the head of this letter and I would suggest that you contact me on [NUMBER] to arrange a suitable time.

[BryanWalker]

Re: Voluntary Termination of car finance with Barclays

Hi Rob thanks for that I will do what you suggest and give them the benefit of the doubt and put more pressure on them.

Was I right to cancel the direct debit or should I carry on paying until the car is collected?

[R0b]

Re: Voluntary Termination of car finance with Barclays

When you terminate the agreement all obligations fall away in relation to carrying on the monthly instalments. Whether there is a disagreement about what or how much is owed is another question but there is nothing within the CCA nor the terms and conditions if you look, that when you terminate the agreement you must continue to the instalments until the car is collected.

They have no leg to stand on with that argument.

Just make sure to keep proof of postage receipt, in case they argue the letter was never received. You may also want to email them a copy of your letter too and state that a copy of the letter has been posted out.

[BryanWalker]

Re: Voluntary Termination of car finance with Barclays

Hi Rob

I spoke with Barclays again this evening and the customer service guy was adamant that I have to sign the paperwork they have sent out. I explained that I don't and that I have already notified them of the VT on the 2nd May and asked if they would please collect the car within the next 14 days.

He stated that when I signed the paperwork to buy the car I agreed to pay any costs that would arise due to wear and tear etc and this was stated on page 9 of my agreement.

What I find odd is if that was true what he said why would I need to sign any other paperwork surely the signed agreement would be enough to try and get money out of me.

I am going to send them the letter you posted above and start to apply pressure that way.

many thanks
Bryan

the below text is page 9 which he said means I have to sign the paperwork

Your responsibilities
You must do the following.
 Keep the vehicle in your possession or control at all times. You must
tell us where the vehicle is when we ask you.
 Pay to keep and maintain the vehicle in a good state of repair and
condition and make sure it is regularly serviced in line with the manufacturer's recommendations and any warranty that applies. A good state of repair means good condition allowing for fair wear and tear, and is sometimes referred to as ‘good and serviceable repair’. You can get a full definition of this from the British Vehicle Rental and Leasing Association. You are responsible for all risks that affect the vehicle. If the vehicle cannot be used for any period of time you must still keep up your repayments. We will own any replacement parts that are used in or on the vehicle and this agreement will also apply to those.
 Make sure the vehicle has a valid Ministry of Transport (MOT) test certificate (if this applies).
 Pay in full any losses we suffer in relation to any damage to or loss, loss in value, theft or destruction of the vehicle or any part of it, whether or not this is your fault.
 Write to us immediately to tell us if there has been any damage to the vehicle or if the vehicle has been stolen, seized or lost, and about anything else which may affect our ownership of the vehicle. You must also write to tell us of any change in your address.
 Allow us or our representatives to inspect and test the condition of the vehicle at reasonable times and make sure we or our representatives have access to the vehicle to be able do this. We do not have a duty to inspect the vehicle and we are not responsible for anything an inspection reveals or should have revealed.
 Make sure no other person has any rights in the vehicle as a result of anything you do, such as a right to recover the vehicle or a right to sell it.
 Not sell, pledge, charge, assign (transfer), sublet or otherwise dispose of the vehicle or attempt to do so.
 Not interfere (or allow anyone else to interfere) with any name, nameplate, identification number, trademark or other identification mark on the vehicle. (If changes are made and the vehicle is returned to us for any reason, you must restore any name, nameplate, identification number, trademark or other identification mark on the vehicle to its original condition (and pay any costs involved) before returning the vehicle).
 Pay on time all licence fees, duties, charges, taxes and other amounts that must be paid for the vehicle, and all rent, rates, taxes and other amounts that must be paid for any premises where the vehicle is kept.
 Not take or send the vehicle outside the United Kingdom without first getting our permission in writing. You can only take the vehicle outside the UK without our permission if you are taking it to another EU country, and you can only do this once a year for up to 28 days as long as you have AA five star insurance cover or the equivalent.
 Not use the vehicle, or allow anyone else to use the vehicle, in a way which is against the law.

•  Pay us (when we demand) all expenses, costs, legal or other expenses we have to pay in connection with taking action to recover any amounts you owe us, finding out the location of the vehicle, returning the vehicle when it is not in a good state of repair, or taking possession of the vehicle from you or any other person. (This includes any payment we make to remove any right which another person may have relating to the vehicle.)
  
•  Pay for any claims made against us and all damages, costs and expenses we have to pay as a result of a claim someone else makes due to the state or condition of the vehicle or how the vehicle is used.
  
  

[R0b]

Re: Voluntary Termination of car finance with Barclays

Hi Brian,

Again, the CCA says otherwise I'm afraid so he can be as adamant as he wishes, the mere fact that a contractual clause says something does not overrule the legislation. Still, even if they demand costs, it does not prevent them from collecting their own car and if they wish to pursue the costs matter, then they can issue legal proceedings for the recovery of it. But in the meantime, they need to come and get the car, especially if the car is on your driveway.

Perhaps the letter is the best way forward

[BryanWalker]

Re: Voluntary Termination of car finance with Barclays

Hi Rob I sent Barclays the Torts letter via email and post. I have received a message today from Barclays stating that they are not accepting the VT unless I sign their paperwork.

my big concern now is that when I don't pay them at the end of this month it will go against my credit file.

can I take the car to one of the Mannheim auction houses they use and just leave it there?

many thanks
Bryan

[R0b]

Re: Voluntary Termination of car finance with Barclays

A message as in a text message or email or voicemail?

At the end of the day it is simply a game of who cracks first. Section 99 says this

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.

As you can see, there is nothing in the above that the termination of the agreement is contingent upon the lender accepting the notice but that you can terminate at any time by giving notice.

If it were me, I would send a further response quoting section 99 and reinforcing that the right to terminate is not contingent on signing Barclays paperwork but it is an indefeasible right and, in accordance with your previous letter, you intend on selling the car at auction if they don't collect by the specified date.

At the end of the day, this is your dispute so I can't tell you what you can and can't do. Lenders will make it as difficult as possible to borrowers because they know in the end they will cave in and pay up or do what they want simply because they wouldn't go to court over it. If you are worried about your credit file and not willing to follow it through potentially to court, then pay up and take the car to the auction house. I'm pretty experienced at this so I know what I am doing and the tricks of the trade but if you are not comfortable with what I suggest to you, follow what Barclays say.

[BryanWalker]

Re: Voluntary Termination of car finance with Barclays

I trust what you say over Barclays as they are just out to make money out of people. I will send them another letter quoting section 99 and advise them I will continue with the torts process.

Thank you for you're help
bryan

[xs2man]

Re: Voluntary Termination of car finance with Barclays

Be aware that you most likely WILL have to actually at least start the process of taking them to court if they do put a marker on your credit file. I was hoping BMWFS would have caved by now, but it doesn't look like it at all. So I am just about to pull the trigger on the small claims court process.