VT and terms and conditions

[atoynton]

Hello. I have paid over 50% of a just add fuel agreement with PSA Finance and they are arguing that I have not paid half of to the total amount, although it states half is £5818 in the agreement and I have paid £5888 and returned the car. They are suggesting the payments were £185 per month and I was paying £293.67 per month. I accept that I may need to pay the outstanding insurance element but wholly dispute the loan element. Any advice out there I would really appreciate. Thank you in advance.

[R0b]

Ahh good ol' PSA.

Will need to see a full copy of the agreement and not just the first couple of pages. Make sure to redact your personal info from the documents.

PSA will be treating the insurance element as a separate agreement hence you may or may not have paid 50% of the vehicle price.

Still, they cat't refuse your notice of terminate on the premise that you haven't met the 50% mark. If they did, that would be a fundamental breach which, if accepted by you, means you owe them jack all for the vehicle instalments.

Equally I'm also of the view about them seeking full payment of the insuraninsif your letter only gave notice of you terminating the HP agreement.

If they are claiming full payment of the insurance element up front then they could also be a fundamental breach which you can elect to treat the agreement t as terminated and not owe any monies on that.

[atoynton]

Thank you for your fast response. I will post a redacted copy tomorrow morning if I may and thanks again!

[atoynton]

Good morning Rob. As requested, I attach a copy of the HP agreement and PSA's letters to me from November 2018. I would really appreciate your advice. Kind regards.

[atoynton]

HP agreement part one

[atoynton]

Sorry. Documents too large to attach so here are the ones I could not attached above. My thanks again.

[R0b]

So by my calculations, you need to have paid 32 months of 37 in order to exceed the 50% mark, being £5,818.88. I have calculated this with the HP payments being £185.41 x 32 = £5,933.12. So the question is, have you made 32 monthly instalments? If not, how many have you made and how far off are you?

The insurance side of things is a separate issue for now but as I mentioned before, if you've given notice to VT the HP agreement then PSA can't prevent it. If you have underpaid by mistake then from a legal perspective that's your miscalculation but the proper legal way to resolve this would be to either pay off in one lump sum or to make instalments until the amount is paid off.

Your original post doesn't mention whether you've given notice to VT or if you have made enquiries. Judging from the letters you've received it's the latter but it would help if you can clarify.

[atoynton]

Hi Rob. thank you for reviewing. I think that I have made a miscalculation. I was paying £293.67 per month and had paid 20 months which equals £5888.00 for the just add fuel deal. I was not clear that the amount for the car was so much less and it was not made clear to me when I contacted PSA Finance enquiring about VT that I hadn't made 50% of the payments. The car was VT'd last week to the auction site, Manheim. If I am wrong then I will pay the outstanding amount off immediately. many thanks