Termination of Agreement for CAR

[Nick Finance]

I have advised my finance company (Jaguar Financial Services) that I wish to exercise my statutory right to terminate my agreement and return the vehicle. The car is in very good condition. Every payment has been made on the correct date. I am advised that I will need to pay a further sum of£689 which has been calculated as being the further sums owed under the agreement. This looks fine. They will also charge a further sum of £75 to have an agent collect the car. But the problem is that the finance company says "As you have not paid the total amount payable under your credit agreement we will record this with the Credit References Agencies as a default on your credit file. This may make it difficult or more expensive for you to obtain credit in future."
Can this be right ? I have paid every single payment required and intend to pay the additional £689 requested according to the terms of the agreement.

[R0b]

We’re you told that a default would be recorded over the telephone or have you got this in writing?

Whichever way that is wrong, they would have the have sent you a notice of default for you to remedy at least 14 days in advance. But as the agreement has been terminated they can’t do that. You are simply liable for the outstanding balance - they can’t default you when the agreement has already been terminated.