Moneybarn - Less Half Rule

[Carkeys]

Hi,

I have voluntarily terminated my contract with Moneybarn and have paid more than half of the finance amount. I've received a letter4 from them stating there is still £1300 to pay.

Total loan amount £11980
Total paid: £6304.60
Remaining: £5675.40

They have confirmed no charges for the vehicle, but the last column shows "LESS Half Rule -£4278.60"

If Ive paid more than half, there are no arrears and nothing to pay for wear and tear, surely that's the matter closed?

I'm going to write to them today for an explanation, but just wanted to get a better understanding before they try to bamboozle me.

Thanks in advance

[echat11]

Hi Carkeys

There is a lot of info here -

https://legalbeagles.info/forums/for...on-your-rights

[ostell]

The contract should state the 50% figure

[Carkeys]

I'll dig out my contract. I just assumed it was half of the total finance amount. That pdf is great by the way, really helpful to anyone prepping for a VT!

[R0b]

Strictly speaking, half the finance amount is not true. It is half the total price payable which includes interest too and any other relevant charges or fees.

Ostell is right though, it should state the 50% mark under the heading “TERMINATION: YOUR RIGHTS”