Voluntary Termination - Direct Debit

[Queenlavish]

Morning all,

Wonder if I can get some advice...

I sent a VT letter to my finance company yesterday, using the template from here. I sent it by email and by special delivery. I got a confirmation email about an hour later and subsequently cancelled my DD. I have paid well over the 50% total amount payable and only had 12 payments left to make and next payment would have been due in 3 days time. I then received an email later that evening advising that the last payment is still due and to contact collection services if there's going to be a problem with this payment. From what I've read on here, the contract is terminated as soon as I send a VT letter. Was I right in cancelling the DD or do I still owe this payment to the finance company? I have paid £2000 over my 50% Liability.

Any advice will be much appreciated.

Regards,

[Kati]

Re: Voluntary Termination - Direct Debit

tagging [MENTION=71570]R0b[/MENTION] xx

[R0b]

Re: Voluntary Termination - Direct Debit

Hello,

If you sent the letter saying that the agreement terminates immediately and the acknowledgement was received from the lender (whether an auto email or from a physical person) then that would be sufficient to cancel the DD. Notice must be given in writing so verbal termination is invalid.

It sounds like their typical response, the CCA says your only liable for 50% it doesn't mention that following termination you owe a further month's payment. You only owe further instalments if there are outstanding arrears or that you terminated on the day the payment became due. If it was before that date then there's no obligation.

Who is the lender?

[Queenlavish]

Re: Voluntary Termination - Direct Debit

Thanks Kati and R0b for such a timely response...much appreciated!

The lender is VTG - Vehicle Trading Group/Limited. Would you advise I respond to the email with one of the templates from here informing them that I will not make further payments? Or shall I wait until they contact me with regards the payment or collection of the vehicle.

Thanks so much!

[R0b]

Re: Voluntary Termination - Direct Debit

Not heard of VTG before so I can't comment on what their procedures are however, as you might read from here people end up having defaults reported on their credit file as a result of refusing to pay. This to my mind is clearly an abuse and also breach of data protection which warrants you issuing a claim (if you so wish) against VTG if they did the same.

Obviously it is up to you whichever route you decide to take but make sure you intend to follow through with it otherwise it will make you look silly in the long run.

No harm in sending a letter now, you could also ask them to provide evidence and the grounds on which they feel the payment is still required despite the agreement being terminated - i'd be surprised if they respond to that in any detail.

[Queenlavish]

Re: Voluntary Termination - Direct Debit

Thanks R0b, I do intend to follow through although just like you, I don't expect a detailed response either. I will send a second letter and keep you updated.

Regards,