Moneybarn Conditional Sale Agreement. How can I terminate agreement minimum costs.

[john gibson]

I have had the car since November 2019 and through financial difficulties have made no payments. I have been served a default notice attached below which must be paid by 3rd Feb. Can any one please advise what i should do and explain the best way to get out of this as I cant afford the payments. I should never have got the car. Thanks

[R0b]

Hi

Difficult for you to get out of it if you've made zero payments, but you could exercise your voluntary termination right under section 99 of the CCA. Notice needs to be giving in writing and so long as you do this before the 3rd Feb, then you will only pay 50% of the total price payable. That's better than being in default and being liable for the full outstanding balance (the Default Notice actually says you have the right to end the agreement before the expiry of it).

Another point to consider is that section 100(4) of the CCA says that if a court determines that the 50% should be reduced then it would make that order. You could argue that if you've only into the contract by a few months you could try to rely on this but you may need to take the up through the complaints procedure and eventually to the Financial Ombudsman who will look at what's fair and reasonable.

If you do VT then MoneyBarn are under a regulatory obligation to consider any repayments of that balance particularly if you cant afford it. The FCA CONC rules state that they must not demand that you repay a large amount in one go if you cannot afford to pay it.

[john gibson]

Thank you for the advice.