Voluntary Termination of HP agreement.

[John1598]

Hi folks, new to the forum I'm wondering if someone in the know can clarify a few issues I'm having regarding VT'ing an agreement and handing my car back.
The vehicle i have on the HP agreement is no longer suitable for the mileage i am doing, the value of it has plummeted and the general running costs are sky high (tax 45 a month & insurance 90). I stupidly uninsured the car and was served with a default notice for breaking my terms and conditions. I have insured the car for 28 days while I decide the best course of action. In December I am at the half way mark.
I have sent Barcleys a letter saying i wish to voluntary terminate the agreement. They stated this will hammer my credit score and I shall be responsible for any shortfall in money owed against what they make at auction. (I don't believe this to be true).
They have in turn sent me documents to sign, one being a return of vehicle checklist and the other regarding collection of the vehicle. I dont really want to sign these and have been advised not to do so. I really don't know what next course of action is.
any help or advise would be greatly appreciated.

Jonathan.

[R0b]

Re: Voluntary Termination of HP agreement.

Hello,

Have they stated in writing that your credit score will be affected and the shortfall in money will need to be paid? This sounds more like a voluntary surrender and not a VT - Just to clarify you have said you wish to VT and not hand the car back yes? If so, I would be interested in seeing the letter which says your credit score will be affected.

I assume the car is still insured and when did you give notice to VT?

I wouldn't bother signing anything as your not legally obliged to do so. In the meantime, take a look at the link below and have a read as it should answer most of your questions.

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

[John1598]

Re: Voluntary Termination of HP agreement.

Sorry my mistake, I am voluntary surrendering the car. Pay half and hand it back. They haven't said that on the documentation they have said it verbally over the phone.

Thanks for the quick reply
Jonathan

[R0b]

Re: Voluntary Termination of HP agreement.

Voluntary surrender is not the same as voluntary termination. Voluntary termination is to pay 50% and return the car as your maximum liability. If you surrender the car voluntarily then they repossess the car and then sell it, offset the proceeds of the car against the total amount payable and you are liable for the remaining balance, leaving you far worse off so if that's what you are doing I would advise against it and suggest you VT. Otherwise you will be left with a large debt and probably taken to court with a CCJ against your name

[John1598]

Re: Voluntary Termination of HP agreement.

Sorry I was getting mixed up. Voluntary termination it is! I am going to email them later on today and explain I don't feel comfortable in signing the documents they have sent me and I'm under no legal obligation to do so anyway. I shall also provide my details so they can contact me for collection of the vehicle.