Voluntary Termination

[Suzi]

Hi, i am just over half way through my PCP car finance, however my finance states i have only paid 40%?
Can i still terminate my hire agreement under with Section 99 of the CCA 1974.?

[R0b]

Morning,

Yes you can still terminate but you will need to repay the remaining 10%. It is a common myth (both consumers and lenders) that you can't VT the agreement unless you have paid 50% when in fact you can terminate at any time in the agreement provided the last payment isn't due.

If the lender refuses to accept your VT notice they could have committed what is known as a repudiatory breach i.e. a fundamental breach that goes to the root of the contract and entitles you to terminate the agreement without any further liability and claim compensation (if any). Though you do need to be careful when claiming a repudiatory breach because if you get it wrong, then you will be in breach yourself.