Voluntary Termination blue motor finance

[Saif]

Help! I have a vehicle on finance with Blue Motor Finance, this started in October 2017. I have sent them a letter to exercise my right to voluntary termination on 19/06/2021

I have paid more than 50% of the total value, cars in beyond reasonable condition and I am not in arrears.

Blue Motor Finance wrote back to advice that there was a missed payment in and default in 2018 and my contract was terminated, so I only have the option of voluntary surrender.

the 2018 arrears was one month, I called them in advance and agreed a payment arrangement which saw me pay the monthly premium over the next three months as well as my usually monthly amount, this has been cleared as agreed and not a single missed payment since.

Prior to serving termination, they confirmed that there are no arrears on my account and over the phone they stated that there is no default marker.

Looks to me as if they are being difficult to avoid this, please advise what I can do.

[R0b]

It's possible they're trying to pull a fast one. Did you receive a default notice requiring you to repay the outstanding balance or did they simply send you a notice of arrears?

You are best making a subject access request for all information they hold about you including letters of correspondence, account history including notes, comments or anything else that is relevant. That might tell you whether they are pulling a fast one.

Just as an FYI, before they can terminate the agreement they must send you a default notice. If they haven't and consider the contract terminated then they would be in material breach of contract. Equally, it sounds very odd that they now claim you the contract was terminated but didn't bother to do anything at the time. Most companies seek to repossess the car, so this sounds a bit fishy to me.

Have they replied to you in writing with this or over the telephone?

[Saif]

Hi rob,

they have emailed me.

They have attached a letter which shows they threatened to default and terminate the agreement, they then have another letter claiming they terminated due to the default in 2018. I don’t recall the letter, however at the time I called them and made a payment plan.

my online account with them shows I have an active account and before serving termination, blue confirmed that the account is up to date with no arrears

[Saif]

Sorry I should specify, I recall the first letter threatening the action and payment was arranged and made. At the time I remember explicitly being concerned that the agreement will be terminated so called them immediately to make the arrangement. They assured that the agreement will remain active and I have kept the car since then as well as making all payments.