Voluntary termination

[Football87]

Hi just looking for some advice. I recently sent my voluntary termination letter to gmac. They have sent me a letter back saying I need to sign a form so they can arrange for the car to be inspected. Should I sign this letter? It also says that I have paid over 50% but I still owe £277 for additional products do I have to pay this. When should I cancel the direct debit?
Thankyou for any help.

[R0b]

Re: Voluntary termination

Hello,

I would advise against signing the letter, it is usually worded in such a way to make you agree and accept any damages on inspection - no legal obligation to sign anything they send you.

The additional products sounds like GAP insurance or something like that? If it is and its wrapped up in the total amount payable, again they can't charge for it.

You should be able to cancel the DD now, but it is up to you. Legally you only need to give notice to terminate, it is not contingent on GMAC accepting it.

[Football87]

Re: Voluntary termination

Thankyou for responding. I'm really not sure what the additional products are. They haven't given a date or anything to collect/inspect the car either. Do you think I should ring the tomorrow and ask what the additional products are and ask when they are going to inspect the car? When would you advise on sending the v5 off? Thankyou.

[R0b]

Re: Voluntary termination

You can ask them sure there's no harm, but I'd suspect its GAP insurance or some equivalent or something else. There's no hard in chasing a collection date too. As for the V5 you can wait for them to inspect and have the agent sign it so you can send it away (your responsible for notifying the DVLA not anyone else) or you can do it now online through the .gov website.

[Football87]

Re: Voluntary termination

Thankyou. I'll just give them a quick call tomorrow and ask about a date for the collection.

[Football87]

Re: Voluntary termination

Hi I have just been in the phone to gmac. They are saying the additional products will be some kind of insurance and that I have to pay them before they can collect the car. They also said that the agreement hasn't ended until I pay this. I have said that it is wrapped up in the total amount so I am not liable for it but they won't give a date to collect the car. I said the agreement ended when I sent the voluntary termination letter and they said my information is wrong. Any advise on what I should do next? Thankyou

[Football87]

Re: Voluntary termination

They also said that I am responsible for the car and payments until the collect the car. I have informed them that I have cancelled my direct debit and I will be filling out the v5 online tonight so gmac will be responsible for the car.

[R0b]

Re: Voluntary termination

I would suggest that you start keeping a paper trail of what you are sending and talking to them about that way if you do complain to the Ombudman at a later stage about the way in which they have behaved then you have some evidence as proof.

As I suspect, the insurance is part of the total amount payable and so you are only liable to pay 50% of that amount. Section 99 of the CCA allows a debtor to terminate the agreement at any time before the final payment is made by giving notice. Termination is not contingent upon GMAC collecting the car and because you have already given notice, you need not pay any more instalments. If GMAC are stating that you are responsible for to continue making car payments until the car is collected then they are misrepresenting what the law says.

Any dispute of the payment does not prevent them from collecting the car either, they appear to be using it as an excuse. Your options then are to make a formal complaint through GMAC the followed by the Financial Ombudsman if they do not uphold your complaint.

Another option could be to write to GMAC and give them another 14 days or so to arrange collection of the car. If they fail to do so then both the tax and insurance will be cancelled and the car shall remain on a public road available for collection in their own time, and explain that you won't be liable for any losses incurred after the 14 day period has ended due to their failure collect. The likelihood is that the police may pick it up as not insured and then impound it, at the expense of GMAC.

Third option would be to write to GMAC and notify them that the letter is in accordance with Schedule 12 of the Torts (Interference with Goods) Act 1977. The letter should give them 28 days to collect the car and if they do not collect within the prescribed time then the car is considered abandoned and you have the legal right to dispose of it. You can find an example of this letter at this link here (at post #5) -> http://www.legalbeagles.info/forums/...torts+wrongful

[Football87]

Re: Voluntary termination

Thankyou for all the information it has been a big help. They are saying I have to pay the remaining balance of the gap insurance because gmac paid for it in full at the start of my car finance. I have just found a statement from gmac. It states in the termination that: 'if you wish we can provide you with separate figures for your conditional sale agreement and for your insurance finance agreement. Also in 'your statement explained' part it says amount of credit: this refers to the amount of credit taken out by you to pay for your vehicle(together with GAP/warranty insurance where applicable) and which you pay for each month as part of your instalment . Does this mean I definitely don't owe the rest of the insurance? I just don't want them putting on my credit file because I said to them on the phone I'm not paying it and they said I'm silly because it will go on my credit file. She said that she has sent the information over to the collection/inspection team now, how long should I wait for them to contact me? Or should I just send them a letter giving them 14days notice to arrange collection of the car?

[R0b]

Re: Voluntary termination

It doesn't matter if GMAC have paid for it all upfront, their loss not yours. If the GAP insurance forms part of the total amount payable then your liability is 50% of whatever that is, whether that's the car loan, the GAP insurance, any PPI etc. it's all wrapped up in there and there's nothing they can do about it if you VT.

If you don't want it on your credit file then pay up, otherwise your other option is to take them to court for breach of data protection if it shows on your credit file.

[Football87]

Re: Voluntary termination

Ok that's great thankyou for all your advice.

[Unregistered]

Re: Voluntary termination

Hi I am also vt my car paid more than half and I owe 1200 pounds for extra products gap paint protection and warranty I was told by black horse that I could ring the insurance companies and cancel maybe claim some back I then rang Vauxhall to see about these policies and found out they don't exist they said they add the products to bridge the gap between what the finance company will lend and the value of the car so the insurances I'm paying for are fictional ? Is that even legal they are separate in my contract I pay 189 for car and 39 for insurances except I don't as they don't exist what can I do ? Thank you