Voluntary Termination & GAP insurance

[R0b]

Re: Voluntary Termination & GAP insurance

All that is required is to allow a reasonable amount of time for them to collect the car, in the legal world a reaosnable time is usually 14 days or longer. However, for the sake of avoiding them claiming that you acted prematurely, it's always worth sending a least a couple of letters.

How many letters have you sent so far about collection?

My suggestion would be to write a final letter/email to them and enclosing all previous correspondence requesting collection of the car. Explain (if you haven't done so already) that you are in the process of notifying the DVLA that they are now the registered keeper and that you will allow them a further 7 days to collect otherwise any liability for the car falls with them.

Is the communal car park private land or public?

[Groundednearthed]

Re: Voluntary Termination & GAP insurance

All that is required is to allow a reasonable amount of time for them to collect the car, in the legal world a reaosnable time is usually 14 days or longer. However, for the sake of avoiding them claiming that you acted prematurely, it's always worth sending a least a couple of letters.

How many letters have you sent so far about collection?

My suggestion would be to write a final letter/email to them and enclosing all previous correspondence requesting collection of the car. Explain (if you haven't done so already) that you are in the process of notifying the DVLA that they are now the registered keeper and that you will allow them a further 7 days to collect otherwise any liability for the car falls with them.

Is the communal car park private land or public?

Hi

Back again. So i sent a final email summing up everything and again asking for a collection date. Still nothing other than a default notice and a 2nd letter regarding an alleged 'complaint' I have made and that they are looking into it.

I called the finance company who appear to be outside the UK. They advised that I need to sign and return the documents sent to me. I challenged that and advised that I had actually complied with the requirements as set out in the CCA. After being asked to hold the line for 10 minutes, they hung up.

So now I have a default notice for a vehicle that is no longer in my name and obviously a mark on my credit report, so what will be my next move?

Regards

Lorraine

[R0b]

Re: Voluntary Termination & GAP insurance

Hi Lorraine,

When you say a mark on your credit report, what do you mean by this? Have they applied a default on there? If so, then that would be illegal as the agreement is terminated already and from what I understand you are up to date?

If they have marked your account then there are two ways of doing this, either through the Financial Ombudsman or through the courts. The Ombudsman may look at what's fair and reasonable so it may not go all in your favour, meaning you don't have to accept it whereas the court will determine the outcome and both parties will be bound by it.

Have you removed the car from your drive now?

[Groundednearthed]

Re: Voluntary Termination & GAP insurance

Hi Lorraine,

When you say a mark on your credit report, what do you mean by this? Have they applied a default on there? If so, then that would be illegal as the agreement is terminated already and from what I understand you are up to date?

If they have marked your account then there are two ways of doing this, either through the Financial Ombudsman or through the courts. The Ombudsman may look at what's fair and reasonable so it may not go all in your favour, meaning you don't have to accept it whereas the court will determine the outcome and both parties will be bound by it.

Have you removed the car from your drive now?

Hi

The car is still in a communal car park and still no contact from the credit agency regarding collection.

The default notice was aletter from the finacne company advising that I had defaulted on my payments and that they were demanding the full amount outstanding.

The mark on my credit report was only my assumption. I have checked with Noodle and nothing is noted on there.

Im not sure what else I can do, they clealry dont appear to want the car back so is there anywhere I can take it or shall i just leave it where it is ?

Regards

Lorraine

[R0b]

Re: Voluntary Termination & GAP insurance

Hi Lorraine,

At this point, I would consider that you are now an involuntary bailee. This is because you were previously in possession by agreement but since termination of the contract, you are now in possession of the car involuntarily. Your obligations as an involuntary bailee are to take reasonable care of the goods and to ensure the ca ris not damaged deliberately or recklessly.

Because the finance co. is not responding to you, then you would need to issue a statutory notice for them to collect the goods. The notice can be by letter and sent by post but I would suggest that you mention the following to comply (retain proof of postage either by receipt from post office or recorded delivery):

- The letter is notice to the finance co. in accordance with section 12 of the Torts (Interference with Goods) Act 1977
- state where the goods are kept and that they are available for collection
- you will not be liable for any losses suffered by them
- give a date by which the goods need to be collected, usually a reasonable time but to be absolutely safe, I would say 1 month
- If they fail to collect the goods you will accept that the goods are abandoned and you will sell the car at auction, any costs incurred in selling the car will be deducted from the proceeds

If you do go down this route and they have failed to collect the car, this would give you a right to sell it however you must retain the proceeds and make efforts to return the proceeds back to the finance co. There is a bit of a grey area as to how long you should retain the proceeds before you can consider retaining them yourself, and that is something I couldn't really answer as again, this should be retaied for a reasonable period of time. How long is reasonable will depend on the amount of the proceeds. However, if there was evidence to suggest that despite selling the car and retaining the proceeds for at least 3 months or longer and after making attempts to contact the finance co. yet they still failed to respond, then it is possible that you would be entitled to the proceeds yourself.

Another option is to make an application to court to grant the sale of the car but this will come at a cost to you and more expensive that the first option.

The alternative would be to leave it as it is but the responsibility still rests with you as to taking reasonable care of it until your duties are discharged.

[des8]

Re: Voluntary Termination & GAP insurance

If you hit the position of selling the goods, the proceeds (less your expenses) belong to the finance company and can be claimed by them up to 6 years later.
Limitation Act applies, so don't rush out and spend it!

[R0b]

Re: Voluntary Termination & GAP insurance

@des8, you are right, I came across an obscure case that said the limitation period does not apply in cases of involuntary bailment and so where the bailor is put on notice about the sale and does not claim the proceeds within a reasonable time, then he gives up that right to claim hence my post above.

But another case I come across said that in the situation of an involuntary bailee, the limitation period is based on tort and so the 6 years applies. Although conflicting information, I would probably err on the side of caution on this one and go with the 6 years from the selling of the car.

[des8]

Re: Voluntary Termination & GAP insurance

Conflicting cases and advice ....... how lawyers rack up their costs!!

[Groundednearthed]

Re: Voluntary Termination & GAP insurance

Hi Lorraine,

At this point, I would consider that you are now an involuntary bailee. This is because you were previously in possession by agreement but since termination of the contract, you are now in possession of the car involuntarily. Your obligations as an involuntary bailee are to take reasonable care of the goods and to ensure the ca ris not damaged deliberately or recklessly.



Because the finance co. is not responding to you, then you would need to issue a statutory notice for them to collect the goods. The notice can be by letter and sent by post but I would suggest that you mention the following to comply (retain proof of postage either by receipt from post office or recorded delivery):

- The letter is notice to the finance co. in accordance with section 12 of the Torts (Interference with Goods) Act 1977
- state where the goods are kept and that they are available for collection
- you will not be liable for any losses suffered by them
- give a date by which the goods need to be collected, usually a reasonable time but to be absolutely safe, I would say 1 month
- If they fail to collect the goods you will accept that the goods are abandoned and you will sell the car at auction, any costs incurred in selling the car will be deducted from the proceeds

If you do go down this route and they have failed to collect the car, this would give you a right to sell it however you must retain the proceeds and make efforts to return the proceeds back to the finance co. There is a bit of a grey area as to how long you should retain the proceeds before you can consider retaining them yourself, and that is something I couldn't really answer as again, this should be retaied for a reasonable period of time. How long is reasonable will depend on the amount of the proceeds. However, if there was evidence to suggest that despite selling the car and retaining the proceeds for at least 3 months or longer and after making attempts to contact the finance co. yet they still failed to respond, then it is possible that you would be entitled to the proceeds yourself.

Another option is to make an application to court to grant the sale of the car but this will come at a cost to you and more expensive that the first option.

The alternative would be to leave it as it is but the responsibility still rests with you as to taking reasonable care of it until your duties are discharged.

Hi.
Thanks for this. The only query I have is that I am no longer the registered owner of the vehicle and this has been confirmed by DVLA. So how wouold that impact on my ability to sell it ?

Lorraine

[des8]

Re: Voluntary Termination & GAP insurance

You aren't the registered owner, and never were!
You were the registered keeper, but have informed DVLA that you are no longer, and that dubious honour belongs to the finance company, who are also the owners.

As the owners have left the vehicle in your possession against your agreement, you are classed an involuntary bailee.
This places certain duties upon you, but also gives you certain rights.
One of these rights is disposal at market value (generally accepted as auction) after certain preliminaries.

Obviously buyers will be wary, and so price will be reduced.

What thinks [MENTION=71570]R0b[/MENTION]

[R0b]

Re: Voluntary Termination & GAP insurance

Agree with Des, if they don't respond to you by the deadline then that would give you rights to dispose of the car, and auction would be the easiest. Any costs associated with the sale would be deducted as long as you keep receipts and proof of costs. So for example, you could take out one day insurance to take the car to an auction site and deduct the cost of that when the sale is completed.

[Groundednearthed]

Re: Voluntary Termination & GAP insurance

Hi Guys. So update. The car was finally collected I didn't sign for it but for the recovery guy to sign a document for me confirming mileage condition of the car etc. Today I have had a call from RMS receivable advising that I owe over £1,000 in excess mileage and £500 in damages ?
She advised by phone that another inspection was done once the car was on site. I advised that they are unable to charge me for any damage once the car has left the collection point and if I haven't signed for it, is that correct? and can they charge me for excess mileage on a VT ?

Regards
Lorrain

[R0b]

Re: Voluntary Termination & GAP insurance

Standard bumpf, up to you whether you want to pay up or not but I would certainly challenge it. Ask them to provide evidence of the damages as well as a break down of the costs involved. I would also dispute the excess mileage.

[Groundednearthed]

Re: Voluntary Termination & GAP insurance

Standard bumpf, up to you whether you want to pay up or not but I would certainly challenge it. Ask them to provide evidence of the damages as well as a break down of the costs involved. I would also dispute the excess mileage.

Hi R0b

Thanks for the reply. They have provided pictures of alleged damage and a breakdown of the cost. TBH photos show nothing and I have numerous photos taken at the time I ceased to be the registered keeper, almost 2 months prior to collection. They advised that the inspection carried out at my property was 'cursory' and a 'full' inspection was carried out 2 days later at their site and these are the pictures they sent me ? I have no intention of paying for these alleged damages as they were not raised during the 'cursory' inspection and they are not evident in 'my' pictures.

As for the excess mileage the woman on the phone, aside from being aggressive and rude, 'assured' me that I am liable for these as per my contract. Stuff I have read on line appears to be mixed in terms of the legal position when it comes to excess mileage liability on VT's, so i guess im asking is it likely that I will be 'legally' obliged to pay the excess mileage ?

Cheers

Lorraine

[Groundednearthed]

Re: Voluntary Termination & GAP insurance

Hi. I have the 'receivables' company phoning me everyday so i would appreciate any advice in response to my last post.

Cheers

Lorraine