PCP Voluntary Termination

[David100]

I am the administrator of my late cousin's estate and am trying to enact Voluntary Termination of a PCP that was used to purchase a car. I have been advised that as I was not a party to the contract, this would be dealt with under Probate Law rather than under the Consumer Credit Act 1974. Is this the case and, if so, can I still enact Voluntary Termination?

[R0b]

Did you follow the correct process for exercising the voluntary termination right i.e. by giving them notice in writing?

[David100]

Hi Rob,
Yes, I notified them by recorded delivery and specifically stated Voluntary Termination under section 99 of the Consumer Credit Act 1974.
They have now recovered and sold the car and sent a statement which includes charges for recovery and auction house charges.
When the PCP was set up, there was a separate loan for Insurance and, as with the PCP, over 50% of the loan plus interest had been paid but I accept that the insurance balance will need to be paid.

[R0b]

Well as far as I'm concerned the law is on your side. Section 86(2) of the CCA says this:

(2) If at the death of the debtor or hirer a regulated agreement is only partly secured or is unsecured, the creditor or owner is entitled, by reason of the death of the debtor or hirer, to do an act specified in paragraphs (a) to (e) of section 87(1) on an order of the court only.

The reference to section 87(1) includes the creditor's right to terminate the agreement, so in simple terms, the lender cannot treat the contract as having simply ended because of death. As administrator you have the same rights as the hirer so you can exercise the VT right, and I'm not aware of anything otherwise.

Were you told over the phone that you can't rely on VT or was this put in writing? If in writing, can you upload their response so we can see what exactly they are saying

[David100]

Thank you Rob, that is very reassuring. The advice that the matter comes under Probate Law rather than the CCA came from Citizens Advice. The agents acting for the Finance Company seem to have a well honed method of dealing with people by not giving answers or explanations, although they are quite adept at sending bills and explaining how to pay them. I've never had to deal with a situation like this before but I simply do not trust either the Finance Company or their agent. I will go back to them and insist that they follow the rules of VT. Your advice is much appreciated. Thank you.

[R0b]

Well why don’t you right back to them and get them to explain to you with reference to any law as to why probate law prevails over your voluntary termination right. They’re then going to have to explain but if they can’t then you can play your card referring to s86(2).

Im tagging des8 as for any clues as probate law is not my best subject.

[des8]

I wonder what they mean by "Probate Law"

Probate is solely the legal and financial processes involved in dealing with the property, money and possessions ( the assets) of a person who has died.

Executors and administrators rights and duties are as in the Trustee Act 2000 and the Administration of Estates Act 1925

Administration of Estates Act 1925 sec 21
(Every person to whom administration of the real and personal estate of a deceased person is granted, shall, subject to the limitations contained in the grant, have the same rights and liabilities and be accountable in like manner as if he were the executor of the deceased.)
read in conjunction with Trustee act 2000 sec 35 which sets out the personal representatives (i.e.executors) rights

As administrator you have the right (even the duty!) to VT the vehicle and your rights are exactly the same as were the deceased's.


Regarding the insurance: if this is GAP insurance contact the insurers directly and inform them of the circumstances and that you want the policy
cancelled. There should be some return of premium due to the estate.

[David100]

Thank you Rob and Des8, I have written to the Finance Company and their agent to question why they haven’t proceeded with VT as requested. The insurance is standard motor insurance, not gap insurance, there will be a balance to pay which is reasonable. I will let you know what happens. Thank you again.

[David100]

Hello Rob and Des8, just a quick update on what has become quite a saga. The Services company acting on behalf of the Finance Company have finally confirmed that Voluntary Termination has been accepted, apparently they had "mistakenly" indicated that I had asked for VS. I am still trying to resolve how much is still owed however. I have accepted that there is a payment owed for the separate insurance element of the agreement but they are asking for about £150 more than my calculation but seem unable, or unwilling, to provide a statement detailing their calculation of the sum owed. As a matter of principle, I am persevering with this but we have achieved our main objective and I thank you both for your help and advice. I just feel very sorry for any individuals who are suffering financial problems and having to deal with these people.