Voluntary Termination of PCP

[AdeleMort21]

Hi

After a little advice if possible.

I wrote to my finance company (RCI Finance Renault) 16th July 2019 to exercise my right to voluntary terminate my agreement. they proceeded to send me their pack to sign to get the process started which of course i haven't signed. It refers to additional charges which i know i wont be liable to pay.

My payment came out 29th July, the matter is still ongoing with them, they are now saying they needed a letter in writing which I have provided already but now they want one with my signature. I cancelled my direct debit 20th August before my payment was due, I have advised them I have done this but they are still reluctant to collect the vehicle. I put it through its first MOT, did the advisory repairs as well as the service. I am constantly liaising with them via email (to keep a paper trail) but don't seem to be getting anywhere. I have gone over the allowed mileage only by about 150 miles which isn't much but as mentioned they are refusing to accept my letter in writing and multiple emails exercising my right to voluntary terminate and to collect the vehicle.

Can someone advise what my next step would be? this has been going on for 2 months now!

Any advise would be appreciated

Thanks
Adele

[R0b]

Have RCI specifically stated that they do/will not accept your letter unless the letter has a physical signature?

Slightly confused about how a payment can come out on 29 July yet you cancelled your direct debit on 20 April?

[AdeleMort21]

Hi Rob

This is the last email I received from them. They have told me I have not voluntary terminated until they receive my signature.

"Good Morning,

Thank you for your email. As previously advised, unfortunately we will not be able to terminate your agreement until we have received a hand signed letter from you.

Until we receive this you will be liable for any payments missed. We will not look to use your August payment as part payment of excess mileage as that rental has been paid as you have not voluntary terminated.

We look forward to receiving your letter soon if you decide you still want to voluntary terminate your agreement."






Apologies I meant August, I have amended the post.

Thanks

[R0b]

Well, you can either continue down this route and claim you've exercised your VT right or, you can claim that RCI are in repudiatory breach.

A repudiatory breach goes to the core of the contract so much so that it allows the innocent party to terminate the contract immediately. The fact that the defaulting party (RCI in this case) is in repudiatory breach does not automatically terminate the contract, you have to elect to temrinate it - this is usually done by writing to the other side or doing something that indicates you are treating the contract as at an end.

The consequences of terminating for repudiatory breach is that the contract is discharged and all primary obligations (in your case, rental payments) are also discharged but any liability that matured before termination you are still responsible for. There is then an implied obligation on the defaulting party to pay compensation for any losses incurred (both past and future) as a result of the breach as if the contract had been properly performed - this would also include loss of bargain/opportunity which in your case could be the remaining rental payments and go as far as saying the right to exercise the option to purchase the car being that value.

Obviously whether you go as far as claiming damages is entirely on you but the benefit of claiming repudiatory breach is that you are discharged from all future obligations and then the option to counterclaim for damages will then be at your discretion.

As I've mentioned on here a number of times, s.99 of the CCA states that notice to terminate must be made in writing, but there is no requirement for the notice to be signed and if the legislation required a physical signature it would have explicitly said so. To give you an example, when you want to legally assign a debt, s.136 of the Law of Property Act 1925 applies. In that provision, it says that an assignment must be "by writing under the hand of the assignor" which essentially means signed by the hand of the assignor.

Nonetheless, the Law Commission has recently released a report on the use of electronic signatures. In their report they discuss the various legislation and case law around the validity of electronic signatures. Their conclusion is that an electronic signatures which can include an email signature, printing your name on a document, a squiggle, a document marked with an X are all capable of being a valid signature.

RCI insisting that they won't accept anything other than a physical signature when the CCA only states that it has to be made in writing, means that they have absolutely no leg to stand on, irrespective of what arguments they make as to why a physical signature is necessary.

If you want to go down the repudiation route then there is an example floating around somewhere I can link you to it, otherwise as I said above, you can continue to insist that you have exercised your VT right. In either case, you can then choose to give RCI notice that they have X days to collect the car otherwise you will:

(i) cancel all tax and insurance and leave the car parked on a public highway with all responsibility for it being left to them. You should make sure that you have notified the DVLA that RCI is now the registered keeper and received confirmation before using this option or

(ii) Under the Torts (Interference with Goods) Act 1977 you have a statutory right to put them on notice to collect and if they fail to do so, then you can legally sell the car and deduct any costs/expenses of doing so with all proceeds going back to RCI.

[AdeleMort21]

Hi Rob,
Before I could reply to the previous email I have since received another:
"Good Afternoon Miss Mortimore,

Thank you for apologies for the delay in response.

Ordinarily we would require a signature in order to terminate your agreement.

Even if you decided not to sign our pack ,we would have still required a hand signed letter to confirm.

Due the length of time of have spoken to a manager for you.

In this instance we would accept an email from the address held on file to express your wish to terminate agreement and we will process for you.

However this will not exclude you from any damages or excess mileage should there be any for you.

Please reply to this email stating your wish to terminate and we can then get this processed for you.


Kind Regards,"

How would you suggest I proceed?
Thanks in advance.

[R0b]

Were you expecting a response from them? Or maybe it is that they are monitoring these forums, some businesses do in fact do this particularly debt purchasing companies like Lowell and Cabot.

Anyhow, you could respond with something like the following:

Dear X,

Thank you for your email.

With all due respect, it is entirely irrelevant that RCI requires, as their policy, a physical signature to be given in order for me to exercise my voluntary termination right under the Consumer Credit Act 1974. That is not what s.99(1) requires me to do, rather it states that I only need give to notice in writing and I am sure you will already be familiar with that provision. Despite this, you have continued to insist over the last few months that a physical signature is required.

Please can you explain to me the sudden change of position?

With regard to the the liability for excess mileage charges and other damages post-termination, this is a matter of opinion and yours is not one I share.

I have already submitted a notice of termination on <insert date> and what I would like from RCI is to confirm, in no uncertain terms, that my notice of termination has been accepted and the agreement deemed terminated from the date given in that notice, which is <insert date>.

Whilst writing, I should point out that the deliberate refusal by RCI to not accept my notice of termination unless I comply with conditions not required by the Consumer Credit Act is not only an attempt to frustrate the process of exercising my statutory right, but it also amounts to a repudiatory breach, so much so that I am entitled to accept the breach, terminate the agreement and seek compensation as if the contract had been fully performed. This includes compensation for loss of bargain.

I will allow until 4pm on 12 September for RCI to confirm that my notice of termination is accepted and effective from <insert date>, otherwise I will be informing you that the agreement will be terminated for repudiatory breach.

I trust this email makes my position clear.

[AdeleMort21]

Hi Rob

Went back to them with what you advised. Havent had a response from them, how do you suggest I proceed?

Thanks
Adele

[R0b]

That's up to you, how do you want to proceed?

[AdeleMort21]

I dont know, just want the car gone as quick as possible now.

[R0b]

It is up to you, either option can lead you down the same path, just different liabilities. I'm afraid if you are looking for me to make that decision for you then I won't because it's your agreement and only you can decide how you want to approach/proceed with matters.

[mackem79]

Hello

Can you update us as to how you are doing with this? I am in a similar position though not so advanced.

Thanks

[LoisOwen]

Hi AdeleMort21

I'm in the same boat with RCI.

I sent the VT letter on the 17th September 2019 via recorded delivery and email, received a call on the 19th from RCI confirming receipt of the letter and they sent me a ''VT pack'' via email, they also requested a copy of my V5C to confirm my cherished plate had been removed.

20th September in the morning I emailed them back the copy for the new V5C and stated I was not going to sign the paperwork within the VT pack, I followed this up with a phone call mid afternoon to confirm receipt, they stated they had received the email and that they understood that I was not prepared to sign.

23rd September Phone call from RCI stating they were terminating my contract with immediate effect, informed me to cancel my DD and that they were cancelling mine on their part. Informed me to contact Manheim for collection and inspection of my vehicle the next day. (no mention of collection costs anywhere)

24th September I contacted Manheim, collection and inspection booked for the 1st October, again no mention of any collection costs.

I will keep you updated regarding the process as it comes along, seems a bit too easy so far...... I will be refusing to sign the paperwork from the inspector on the day and will be disputing any costs. (Wing mirror has slight scratch and the diamond cut wheels are showing signs of corrosion, which seems to be a known fault with Renault and their rubbish laquer jobs, I will NOT be paying for their issue!)

[mackem79]

Hi AdeleMort21

I'm in the same boat with RCI.

I sent the VT letter on the 17th September 2019 via recorded delivery and email, received a call on the 19th from RCI confirming receipt of the letter and they sent me a ''VT pack'' via email, they also requested a copy of my V5C to confirm my cherished plate had been removed.

20th September in the morning I emailed them back the copy for the new V5C and stated I was not going to sign the paperwork within the VT pack, I followed this up with a phone call mid afternoon to confirm receipt, they stated they had received the email and that they understood that I was not prepared to sign.

23rd September Phone call from RCI stating they were terminating my contract with immediate effect, informed me to cancel my DD and that they were cancelling mine on their part. Informed me to contact Manheim for collection and inspection of my vehicle the next day. (no mention of collection costs anywhere)

24th September I contacted Manheim, collection and inspection booked for the 1st October, again no mention of any collection costs.

I will keep you updated regarding the process as it comes along, seems a bit too easy so far...... I will be refusing to sign the paperwork from the inspector on the day and will be disputing any costs. (Wing mirror has slight scratch and the diamond cut wheels are showing signs of corrosion, which seems to be a known fault with Renault and their rubbish laquer jobs, I will NOT be paying for their issue!)

This is interesting thanks.

I'm a little way behind you in the process so keen to learn how you get along.

Good luck.

[LoisOwen]

Hello,

Quick update....

Vehicle was was picked up and inspected by a Manheim on the 1st, guy was polite and stated before I even had the chance to dispute that he wasn’t going to charge for the alloys. States that he was already aware of the issue of the corrosion to the diamond cut wheel... win!

Stated that the only issue was a scuff to the rear towing eye (£94) but he stated himself for me to dispute it as it was over the allowed amount but ‘not THAT’ bad.

Accepted that I wasn’t willing to sign his paperwork and off he went.

Still awaiting the the bill to come through which I’ll dispute the £94.

[LoisOwen]

forgot to tag you both!