Voluntary Termination

[Angiep]

Hi,
Could anyone tell me if the kind of loan you have makes any difference with a voluntary termination? My company replied to my request saying that because it's a "motor loan" that its not possible to voluntary terminate the agreement.
any advice would be greatly appreciated.

[R0b]

Re: Voluntary Termination

Must be regulated by the consumer credit act - it should say this at the top of your agreement.

[Angiep]

Re: Voluntary Termination

Must be regulated by the consumer credit act - it should say this at the top of your agreement.

Yes it definitely is thanks for the quick response

[judgemental24]

Re: Voluntary Termination

http://www.legislation.gov.uk/ukpga/1974/39/section/100

[R0b]

Re: Voluntary Termination

As pointed out in many posts on here, you can pay the 50% then write to terminate or you can terminate early and repay the difference up to 50%

[Amethyst]

Re: Voluntary Termination

There are different agreements under the consumer credit act - restricted use, non-restricted use - debot-creditor-supplier etc etc ... , Hire Puchase and so on - if you have a copy of the agreement that would be a help - if it is a VT type loan then it will have the terms of VT within it. Does it ?

Did you borrow some money, then go buy a car ?
Did you go to a car dealer and they arranged finance through another company ?
etc. ?

A scan of the agreement might be best if you aren't sure.

Which company did you borrow the money from ? ( might help work it out if you don't have the agreement)

[Angiep]

Re: Voluntary Termination

Hi, the finance is through Fiat Financial Services which was arranged through Stoneacre where we purchased the car. I have looked through the agreement and it does not use the term VT and it does state that its a Motorloan.

[R0b]

Re: Voluntary Termination

Hi, the finance is through Fiat Financial Services which was arranged through Stoneacre where we purchased the car. I have looked through the agreement and it does not use the term VT and it does state that its a Motorloan.

Hi Angie, could you possibly upload the contract with your personal information blanked out - I'll be honest I have never heard of a 'motor loan' before and it could very well be disguised as a regulated agreement.

[Angiep]

Re: Voluntary Termination

Hi, the agreement is 4 pages long did you want it all?

[R0b]

Re: Voluntary Termination

Yes please, just blank out your personal information

[Angiep]

Re: Voluntary Termination

Hi sorry for the delay, this is all the agreement information.

Once again thanks for any help.

[R0b]

Re: Voluntary Termination

[MENTION=74966]Angiep[/MENTION]

Interesting agreement there. First of all, reference to a 'Motorloan' is of no meaning except in so far as that is what Fiat seem to call the document so by customer service saying that you cannot terminate is incorrect.

However, that being said as it is a fixed sum loan and not a Hire Purchase or Conditoonal Sale Agreement so you cannot hand the car back under voluntary termination rules.

I cannot see any reference to title of the vehicle and so I can only assume that, the car is owned by you and not the lender, so you could sell the car and use it towards paying off the loan agreement. This type of agreement is pretty much the same as going to the bank and asking for a loan except it is restricted to a loan for a particular car.

It looks like Fiat are becoming a bit wise to Hire Purchase/Conditional sale agreements and are now offering a fixed sum loan instead which essentially enables them to receive/recover their loan plus interest without the worry of someone handing back a badly depreciated car.

I am afraid Angie you cant get out of this one with a VT. Maybe next time you want to get a car make sure it is a Hire Purchase or Conditional Sale Agreement.

[Angiep]

Re: Voluntary Termination

Thanks for all the help anyway least I know now

[R0b]

Re: Voluntary Termination

No worries, sorry I couldn't help any further. If there was a term within the agreement which stated that the lender owned the vehicle until the amount was paid off, then you could have arguable grounds that the agreement was in fact a Hire Purchase or Conditional Sale Agreement and not a fixed loan and you would have rights to VT.

What you could do, if you are looking to get another car is talk to a few dealers as sometimes they are willing to take the car and pay off your debt in return for taking a car of theirs out. Just make sure it's not Fiat this time

[Angiep]

Re: Voluntary Termination

Haha will do think we'll just give a certain dealership a wide birth!