VT Rights Car finance

[martin1506]

Hi all

I have sent a VT letter to my finance company on the 1st October 2017 stating that I am wanting to VT.
They then issued a default notice to me on the 9th October 2017 because I had not made payment because they had chosen to ignore my VT letter and told me basically that I couldn't do it unless I paid 50% owed.

My account is now in 2 months of arrears.

although my VT letter was send before any arrears occurred do I need to pay arrears before I can VT?

This is what they are saying.

Thanks

[R0b]

Re: VT Rights Car finance

If termination took effect before the payment date then it hasn't become due and so you don't owe them. The CCA allows you the right to terminate at any time and does not require you to have paid 50% before you termination can be effected. Sure, if you have not paid 50% then you will be liable to pay the difference but it doesn't mean you can't terminate the agreement.

Whoever the lender is, put in a formal complaint and get them to put in writing exactly what section of the CCA are they relying on which suggests that the right to VT is conditional on having already paid 50% of the total amount payable. They have 8 weeks to give a final response if not then you can pursue it to the Financial Ombudsman.

If they raise any defaults on your credit file that would be unlawful and you have the right to redress for breach of data protection should you wish to pursue them in court.