Voluntary Termination

[PaulMc09]

Hi All, I posted this earlier within the motoring section of forum but not sure if this was the correct area, appreciate any help that comes my way all

Newbie here looking for some assistance, I have been in contact with my finance Startline Motor Finance in relation to VT for my HP.

I have been giving a figure of £920 to meet the 50% to enable me to carry out the VT which I would like to do.

I have read into the section of VT (which is extremely helpful) on this forum but I have a few questions which I cannot find the answers to.

The finance company keep referring to section 11 - Your right to end the agreement early, they are advising me I am liable for retaking possession of the vehicle and that I must pay them the cost of repairs required to put the vehicle in good condition (car is excellent condition).

Read through the VT form I can see both of the above are not legally required but not sure how it will work if it is within my contract ? Also when I hit the 50% for payments can I automatically cancel my direct debit for the finance payments ?

I really appreciate your help and thanks for any advice that follows,

Paul

[R0b]

Re: Voluntary Termination

Hi Paul,

Your liability is clear and it's 50% anything in your contract which imposes further costs is unenforceable. Once youhave given notice to terminate you can cancel your DD but I would usually do this a few days from when you sent your notice, either by email or if by post keep proof of postage.

[PaulMc09]

Re: Voluntary Termination

Hi R0b,

Thank you very much for your reply, your advice is much appreciated.

Can I just check that I have picked this up correctly though, in relation to their contract which I touched on above they are not correct and I don't need to pay them to remove nor am I legally required to fit the bill for any works they deem necessary for the car ?

Thanks once again,

Paul

[R0b]

Re: Voluntary Termination

When they say re-taking possession that usually implies that they have terminated the contract and you are liable for the remaining balance. But if you VT they cannot do this.

You are liable for any damage which is beyond a reasonable condition, though it is up to the lender to prove the damage happened whilst in your possession. Lenders do not carry out initial inspections so it is very difficult to prove that the damage occurred in your control. Below is a quote from a Court of Appeal case, Brady v St Margaret's Trust concerning damage and evidence required for HP agreements:

"There should be evidence by the hire-purchase company to show the condition of the goods at the time the agreement was made and to show how far the hirer has defaulted under it. As I read this clause, the hirer's duty is to keep the car in the condition in which it might reasonably be expected to be if he had looked after it properly. He need not put it in a better condition than it was when he hired it. He need only keep it in the condition in which a reasonably minded hirer would keep it."

Lenders don't like this and use all sorts of tactics for people to pay up such as applying defaults on credit file

[PaulMc09]

Re: Voluntary Termination

R0b your a gentleman, I will continue with the VT process following your excellent advice I will try keep my post updated to enable the outcome to be seen.

Thanks for your help mate.