p.c.p.

[ian lewis]

Hi I want to V.T my car,I,ve made every payment for 18 months,the car is in excellent condition but the finance co. want £3700 to be paid somehow.I,ve had to take a lower paid job so paying this money will be a problem.Any advice would be very welcome.

[R0b]

Re: p.c.p.

Why are they saying they want 3700? Hey usually say that if your agreement is a loan or a lease. Does any part of the agreement terms say that you can Terminate the agreement after paying half?

[ian lewis]

Re: p.c.p.

Hi the agreement was lease for 3 years with a final value for the car of £9000.

[R0b]

Re: p.c.p.

Unfortunately you can't VT a lease, if you click on the link below my guide gives a little more information. Your agreement will specifically have a section or clause that says you have the right to terminate provided you have paid XXXX.XX if it doesn't then it is not an agreement you can VT on.

http://www.legalbeagles.info/forums/...ry-Termination

[ian lewis]

Re: p.c.p.

Hi Rob, just checked and it,s a conditional sale agreement,can i vt this,thanks

[ian lewis]

Re: p.c.p.

I feel I,m not explaining my position clearly.I took out a C.S.A, for£24000 with a final figure of £9000 to pay if i wanted to keep the car.At present I,ve made 18 pay ments of £389 .Santander will take possession of the car providing I agree to pay £3700 over an agreed period plus£70 for the car to be collected.should I accept this deal or will I be liable for further costs.HELP

[R0b]

Re: p.c.p.

Hi Ian,

I am assuming when you say CSA you mean a conditional sale agreement as that's what I had when I took mine out with Santander. It might sound like you are surrendering the vehicle, in which case you definitely do not want to do that or you'll be liable for the whole amount but if there is a final figure of £9000 to pay I am not sure why they are asking you to pay £3700 - unless you have not met the 50% threshold.

To VT the agreement you need to meet 50% of the total amount payable, if that is £24000 then you need to pay £12,000 but it sounds like it might be something less. You are entitled to terminate the agreement at any point but you will be required to pay the difference between what you have paid so far up to the 50% threshold.

Santander cannot refuse to VT the agreement as you have a legal right to do so and your liability is limited to 50% they can't charge you for the collection fees either. They can take you to court for the £3,700 as they are legally entitled to that if that is the outstanding amount to meet the halfway point. However, as you have explained your circumstances due to being unable to afford it you could raise a complaint to the Financial Ombudsman as they are unfairly treating you if you can show to offer them a reasonable repayment plan, which might avoid court and may also avoid a CCJ too as that will affect your credit report for the next 6 years.

Have you written to them yet to VT or just called them up?