Voluntary Termination

[Flanders]

Hi,

I VT'd my car as I have passed the 50% mark, the finance was with Startline Motor finance. The termination was acknowledge by them on the 23rd Nov. I requested that they collected the car which they advised would cost £192, after pointing out my rights they were not moving so I delivered the car early December.

Startline have sent me a late payment charge for Decembers payment and a late notice today for January - where do I stand? my understanding is that the termination took place and was acknowledged in November and therefore I do not need to pay anything else? They (Startline) claim as the car was not returned until december I still owe that payment and the late notice letters will continue until the process is completed

NB I have also disputed the 'Damages' as the inspector, on returning the car stated in his opinion it was wear and tear (I also have a witness to this conversation!)

[pt2537]

Hi,

I VT'd my car as I have passed the 50% mark, the finance was with Startline Motor finance. The termination was acknowledge by them on the 23rd Nov. I requested that they collected the car which they advised would cost £192, after pointing out my rights they were not moving so I delivered the car early December.

Startline have sent me a late payment charge for Decembers payment and a late notice today for January - where do I stand? my understanding is that the termination took place and was acknowledged in November and therefore I do not need to pay anything else? They (Startline) claim as the car was not returned until december I still owe that payment and the late notice letters will continue until the process is completed

NB I have also disputed the 'Damages' as the inspector, on returning the car stated in his opinion it was wear and tear (I also have a witness to this conversation!)

I think the second word is "off". That would probably be my reply to this claim for late payment fees. You VT in writing thats the contract ended, its their pigeon if they dont collect the car in a timely manner.

[R0b]

I agree though in a much more polite way, I would suggest you look at making a formal complaint. Voluntary Termination is not conditional on the return of the car and I would make a point of asking Startline to specifically refer to the relevant provision in the Consumer Credit Act that says your right to VT is subject to the return of the car.

The simple answer is that they can't, because no reference exists as S.99 offers an unconditional right provided it is done so before the final payment is due. So they are claiming a non-existent debt and if you wanted to, you could pursue your complaint to the FOS and ask them to consider making an award for reasonable compensation because Startline should be fully aware that the outstanding payments are not actually recoverable.

You may also want to point to certain provisions of the Consumer Credit Sourcebook (CONC):

CONC 7.5.3
A firm must not ignore or disregard a customer's claim that a debt has been settled or is disputed and must not continue to make demands for payment without providing clear justification and/or evidence as to why the customer's claim is not valid.

CONC 7.14.1
(1) A firm must suspend any steps it takes or its agent takes in the recovery of a debt from a customer where the customer disputes the debt on valid grounds or what may be valid grounds.

CONC 7.14.2

Valid grounds for disputing a debt include that:
(1) the individual being pursued for the debt is not the true borrower or hirer under the agreement in question; or
(2) the debt does not exist; or
(3) the amount of the debt being pursued is incorrect.