Voluntary termination

[Kevinh]

Hi.
when doing a voluntary termination, does my vehicle have to have a 12 month mot certificate, before they will accept it back?

[R0b]

Re: Voluntary termination

Hi.
when doing a voluntary termination, does my vehicle have to have a 12 month mot certificate, before they will accept it back?

Hi Kevin,

When you VT the agreement it is not subject to any conditions other than you need to pay 50% of the total amount payable whether you have paid that already or need to make up the difference. The finance company is entitled to compensation for damage to the car that is beyond reasonable condition. As reasonable condition is not defined in the Consumer Credit Act, this is a subjective point.

It could be argued that a car being in reasonable condition would require an MOT certificate because it shows that the car can be put on the road. On the other hand, an MOT certificate simply confirms that the car passes the minimum acceptable standards at the time of the test being undertaken but does not mean that the car is roadworthy. Having a valid MOT certificate could show to some extent the car is in a reasonable condition.

So the strict answer to your question, is no the finance company cannot refuse to accept the car back on the basis that it does not have an MOT certificate because that is not subject to the conditions of termination under section 99 of the CCA. What they can do however is potentially charge you for anything that may need fixing if the car does not pass an MOT test. As the car is likely to go to auction, I doubt they would put the car in for MOT before auctioning but they may do that.

If they took you to court over it in claiming damages, they would need proof first of all and an independent expert to prove that the car is not in a reasonable condition given its age.

Who is the finance company and how long ago did you send your notice to VT? Have they acknowledged your letter yet?

[Kevinh]

Re: Voluntary termination

Hi Kevin,

When you VT the agreement it is not subject to any conditions other than you need to pay 50% of the total amount payable whether you have paid that already or need to make up the difference. The finance company is entitled to compensation for damage to the car that is beyond reasonable condition. As reasonable condition is not defined in the Consumer Credit Act, this is a subjective point.

It could be argued that a car being in reasonable condition would require an MOT certificate because it shows that the car can be put on the road. On the other hand, an MOT certificate simply confirms that the car passes the minimum acceptable standards at the time of the test being undertaken but does not mean that the car is roadworthy. Having a valid MOT certificate could show to some extent the car is in a reasonable condition.

So the strict answer to your question, is no the finance company cannot refuse to accept the car back on the basis that it does not have an MOT certificate because that is not subject to the conditions of termination under section 99 of the CCA. What they can do however is potentially charge you for anything that may need fixing if the car does not pass an MOT test. As the car is likely to go to auction, I doubt they would put the car in for MOT before auctioning but they may do that.

If they took you to court over it in claiming damages, they would need proof first of all and an independent expert to prove that the car is not in a reasonable condition given its age.

Who is the finance company and how long ago did you send your notice to VT? Have they acknowledged your letter yet?

Hi Rob.
the finance company is the car finance company, I have paid two thirds off my financial agreement, without missing a payment, I wrote to them on the 11th July, using a voluntary termination template letter from this site, via registered post, I received a call back from them yesterday 15 July 2016, at first they asked why I wanted V T, when I told them it was personal they then asked if I wanted to take lower monthly payments, or a holiday break, I told them I didn't want any of these, he hen asked if the car had an mot, I told him that the mot had expired on the 12 July 2016, that is when he to me they would refuse to take the car back as it hadn't got a 12 month mot certificate, and that it states in my contract that it must have a 12 month mot certificate, I cannot find it any where that says that, but I may not be looking hard enough, I told him that I had taken advise on the matter, he asked who from, which I declined to tell him, as I said good bye to him, I told him I would be taking more advise, but I never turned my phone off, and I could here what was being said, I had on loud speaker so my wife could hear the conversation, the gentleman whome I had been talking too, was speaking to a female about our conversation, we could hear him say, I have told him we will not take the vehicle back until it has a 12 month mot certificate, was I right to say that, there was other stuff said but it was muffled due to back ground noise.
kev.

[R0b]

Re: Voluntary termination

Take a look at this guidance under the heading on the law relating to VT it should answer your questions -> A GUIDE TO VOLUNTARY TERMINATION


Section 99 does not have any conditions or criteria such as you can only temrinate if you comply with the terms of the contract. The reason it is in there is for the protection of the consumer and the other sections I refer to stipulate that when you VT they cannot impose further liability on you which incurs additonal cost.

I've not seen any contract terms which say at the end of termination the car must have a valid MOT but even if those terms did, it goes against your rights under section 99 and is void and unenforceable. Just for reference anyway I would double check the terms paragraph by paragraph and try to see if there is any reference to MOT - if there is not, then they have no leg to stand on and you could put some pressure on them by saying there is no terms which state that and they ar eusing aggressive practices to stall collection of the car - you could also threaten to SORN the car if they do not collect it within a reasonable timeframe, 14 days from termination is usual but if its a little longer than that then you might need to be flexible a bit depending on how they act.

Do they have an email address you can correspond with or is it just an addresss they have supplied you? I would suggest sending them a letter/email advising them to collect the car and also make reference about the call you made and what was said and confirm your terms and conditions do not stipulate that requirement.

If you need assistance on the letter, I am happy to help if you want to post up a draft. There is also a couple of sample letters in the link provided to give you a bit of guidance.

[Kevinh]

Re: Voluntary termination

Take a look at this guidance under the heading on the law relating to VT it should answer your questions -> A GUIDE TO VOLUNTARY TERMINATION
Section 99 does not have any conditions or criteria such as you can only temrinate if you comply with the terms of the contract. The reason it is in there is for the protection of the consumer and the other sections I refer to stipulate that when you VT they cannot impose further liability on you which incurs additonal cost.

I've not seen any contract terms which say at the end of termination the car must have a valid MOT but even if those terms did, it goes against your rights under section 99 and is void and unenforceable. Just for reference anyway I would double check the terms paragraph by paragraph and try to see if there is any reference to MOT - if there is not, then they have no leg to stand on and you could put some pressure on them by saying there is no terms which state that and they ar eusing aggressive practices to stall collection of the car - you could also threaten to SORN the car if they do not collect it within a reasonable timeframe, 14 days from termination is usual but if its a little longer than that then you might need to be flexible a bit depending on how they act.

Do they have an email address you can correspond with or is it just an addresss they have supplied you? I would suggest sending them a letter/email advising them to collect the car and also make reference about the call you made and what was said and confirm your terms and conditions do not stipulate that requirement.

If you need assistance on the letter, I am happy to help if you want to post up a draft. There is also a couple of sample letters in the link provided to give you a bit of guidance.

Phi Rob.
i have just looked through my finance contract with the car finance company, and know where does it state the vehicle must have a full mot certificate before they will collect, what it does say is Termination : Your Rights, you have a right to end this agreement, to do so, you should write to the person you make your payments to, they will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £2,958.28. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more.
i would be very grateful if you could help me draft up a letter to send.

[R0b]

Re: Voluntary termination

Hi Kevin, draft letter below, adjust as you require. I've put 31 July as an extended courtesy but you can change it if you want to.


Dear Sirs,

Agreement Number:
Vehicle Registration:

I am writing further to my letter dated [DATE] and telephone conversation with an employee of The Car Finance Company on 15 July [named]. [NAME explained / It was explained] to me that under the terms of my contract I must have a valid MOT certifciate before the vehicle will be collected. Having read the terms and conditions of my agreement, nothing within it states that there must be a valid MOT certificate. Therefore [NAME/ the agent] falsely claimed that this was a requirement when it was not.

You will be aware that I gave notice on 11 July 2016 to terminate the agreement under section 99 of the Consumer Credit Act ("CCA") and the effect of this is that the agreement is terminated. There is no obligation under the CCA which specifically states that there must be a valid MOT certificate on termination. Accordingly, I require you to contact me at your earliest opportunity to arrange collection of the vehicle as soon as possible, and in any event no later than 31 July 2016.

THE BELOW IS OPTIONAL IF YOU WISH TO ADD IT

If you continue to refuse to collect the vehicle and the vehicle still remains in my possession by 31 July, I shall notify the DVLA that you are now the registered keeper and all liability from that date forward shall rest with you. All tax and insurance shall be cancelled at the same time.

I look forward to hearing from you by 31 July.

Your faithfully,

NAME

[Kevinh]

Re: Voluntary termination

Hi Kevin, draft letter below, adjust as you require. I've put 31 July as an extended courtesy but you can change it if you want to.


Dear Sirs,

Agreement Number:
Vehicle Registration:

I am writing further to my letter dated [DATE] and telephone conversation with an employee of The Car Finance Company on 15 July [named]. [NAME explained / It was explained] to me that under the terms of my contract I must have a valid MOT certifciate before the vehicle will be collected. Having read the terms and conditions of my agreement, nothing within it states that there must be a valid MOT certificate. Therefore [NAME/ the agent] falsely claimed that this was a requirement when it was not.

You will be aware that I gave notice on 11 July 2016 to terminate the agreement under section 99 of the Consumer Credit Act ("CCA") and the effect of this is that the agreement is terminated. There is no obligation under the CCA which specifically states that there must be a valid MOT certificate on termination. Accordingly, I require you to contact me at your earliest opportunity to arrange collection of the vehicle as soon as possible, and in any event no later than 31 July 2016.

THE BELOW IS OPTIONAL IF YOU WISH TO ADD IT

If you continue to refuse to collect the vehicle and the vehicle still remains in my possession by 31 July, I shall notify the DVLA that you are now the registered keeper and all liability from that date forward shall rest with you. All tax and insurance shall be cancelled at the same time.

I look forward to hearing from you by 31 July.

Your faithfully,

NAME

Hi Rob.
thank you very much for this, I will keep you informed of any corespondence from them.
kevin.

[Kevinh]

Re: Voluntary termination

Hi Rob.
thank you very much for this, I will keep you informed of any corespondence from them.
kevin.

Hi Rob,
i sent the letter to the car finance company on 17 July I used the draft that you kindly did for me, I asked them to contact me regards collection of vehicle, no later than today's date, or I would be contacting the DVLA to say that they are now the owners of the vehicle, I have heard nothing back from them, do I have to contact them telling them that I am now going to tell DVLA they are new owners, do I have to send anything to DVLA?

[R0b]

Re: Voluntary termination

Hi Kevin,

If you want to notify the DVLA that the finance co is the registered keeper you can do so online here https://www.gov.uk/sold-bought-vehicle

Fill in the relevant information, I would suggest you input their address as written on the finance agreement but to be absolutely certain and that they haven't changed address they should have a company number on the front page at the top normally in brackets. You can verify their registered address by going to https://beta.companieshouse.gov.uk/ and putting in the company number.

I would not cancel any tax/insurance until you have received written confirmation that the details are now transferred to the finance company or you may get a fine.

In the meantime it might be worth calling the finance company and telling them what you are going to do, see if they will arrange someone and if don't budge then follow it up with an email/letter making reference to your phone call and that you have now notified the DVLA and all liability rests with them.

[Jasonknox]

Re: Voluntary termination

Hi Rob.
the finance company is the car finance company, I have paid two thirds off my financial agreement, without missing a payment, I wrote to them on the 11th July, using a voluntary termination template letter from this site, via registered post, I received a call back from them yesterday 15 July 2016, at first they asked why I wanted V T, when I told them it was personal they then asked if I wanted to take lower monthly payments, or a holiday break, I told them I didn't want any of these, he hen asked if the car had an mot, I told him that the mot had expired on the 12 July 2016, that is when he to me they would refuse to take the car back as it hadn't got a 12 month mot certificate, and that it states in my contract that it must have a 12 month mot certificate, I cannot find it any where that says that, but I may not be looking hard enough, I told him that I had taken advise on the matter, he asked who from, which I declined to tell him, as I said good bye to him, I told him I would be taking more advise, but I never turned my phone off, and I could here what was being said, I had on loud speaker so my wife could hear the conversation, the gentleman whome I had been talking too, was speaking to a female about our conversation, we could hear him say, I have told him we will not take the vehicle back until it has a 12 month mot certificate, was I right to say that, there was other stuff said but it was muffled due to back ground noise.
kev.

Cabot finance are

- - - Updated - - -

Cabot finance are taking me to court as they bought debt off British credit trust I paid half of car handed car back now they are chasing me for 9000 pounds but has been thrown out of court twice now back in court Friday

[Kevinh]

Re: Voluntary termination

Hi Kevin,

If you want to notify the DVLA that the finance co is the registered keeper you can do so online here https://www.gov.uk/sold-bought-vehicle

Fill in the relevant information, I would suggest you input their address as written on the finance agreement but to be absolutely certain and that they haven't changed address they should have a company number on the front page at the top normally in brackets. You can verify their registered address by going to https://beta.companieshouse.gov.uk/ and putting in the company number.

I would not cancel any tax/insurance until you have received written confirmation that the details are now transferred to the finance company or you may get a fine.

In the meantime it might be worth calling the finance company and telling them what you are going to do, see if they will arrange someone and if don't budge then follow it up with an email/letter making reference to your phone call and that you have now notified the DVLA and all liability rests with them.

Hi rob
i have still heard nothing from the car finance company with regards as to collecting the vehicle, I filled in the relevant form to change ownership with the online form with DVLA, with which I have had confirmation from the DVLA in writing, I emailed the car finance company of this, but have had no contact from them, I am emailing them to say that they are now the new registered keeper of the vehicle, and that im posting on the green new owner slip from the v5 registration document, the vehicle is still on my drive, and it is in the way, it is no longer taxed or insured, could you advise as to my next step.
many thanks.
kev.

[R0b]

Re: Voluntary termination

Hi Kev,

I can only think of two options. Firslty I would write to them and state that the vehicle is on your drive and you no longer authorise them to have this stored on your land and that they come and remove it.

You can either specify that if they don't collect or arrange collection in the next 7 days that you will have the car removed fro your drive and put onto the public highway, bearing in mind that the car is no oonger taxed or insured, liability of any charges are now their responsibility.

Alternatively you could threaten to tke legal action against them for trespassing despite repeated attempts to come and collect the car. If they don't collect you will be issuing a claim in court for damages for trespass and an order by the court for them to remove it.

If you go for option one, they might ignore you and if the car is put on the highway its likely it will get impounded and they may threaten or issue court proceedings for their losses. However you could counterclaim this for damages for trespass and their own negligence in refusing to pick it up or respond to your threat of moving it on the highway so you could have a defence either way.

YOu need to keep records and copies of all letters and emails sent to them as you will need to rely on those if either option goes to court.

Your other option is to just leave it there but that won't get you nowhere. Just to confirm you are sending the letters to the correct address yes?

[Kevinh]

Re: Voluntary termination

Hi Kev,

I can only think of two options. Firslty I would write to them and state that the vehicle is on your drive and you no longer authorise them to have this stored on your land and that they come and remove it.

You can either specify that if they don't collect or arrange collection in the next 7 days that you will have the car removed fro your drive and put onto the public highway, bearing in mind that the car is no oonger taxed or insured, liability of any charges are now their responsibility.

Alternatively you could threaten to tke legal action against them for trespassing despite repeated attempts to come and collect the car. If they don't collect you will be issuing a claim in court for damages for trespass and an order by the court for them to remove it.

If you go for option one, they might ignore you and if the car is put on the highway its likely it will get impounded and they may threaten or issue court proceedings for their losses. However you could counterclaim this for damages for trespass and their own negligence in refusing to pick it up or respond to your threat of moving it on the highway so you could have a defence either way.

YOu need to keep records and copies of all letters and emails sent to them as you will need to rely on those if either option goes to court.

Your other option is to just leave it there but that won't get you nowhere. Just to confirm you are sending the letters to the correct address yes?

Hi Rob.
this morning I have received two letters from the car finance company, both of the same content, inside is a default notice being served on me, unless I take the required action to remedy the breach, as they are saying I missed july's payment, there is no mention of my voluntary termination, or when they will be collecting the vehicle, the address at the top of the page is exactly the same as I have been using, also the email address that I used.

[just_cambs77]

Re: Voluntary termination

Hi, this sounds a little like my recent case. I used the financial ombudsmans, it took a little while but in the end got the result i wanted. I just wanted to add that even though i handed my VT in on the 20th of January i was still made libial to pay January payment which was due in febuary as the argument runs in areas.
so you may be libal for julys payment but should not be liable for anything afterwards.

[Kevinh]

Re: Voluntary termination

Hi, this sounds a little like my recent case. I used the financial ombudsmans, it took a little while but in the end got the result i wanted. I just wanted to add that even though i handed my VT in on the 20th of January i was still made libial to pay January payment which was due in febuary as the argument runs in areas.
so you may be libal for julys payment but should not be liable for anything afterwards.

How do I go about using the financial ombudsman?