Voluntary Termination extra payments

[FraserMowlem]

We recently VT'd our Fiat financed through FCA. They charged us £70 pounds to send someone from there auction house to come and collect the car who inspected it in front of my wife. They both signed the inspection paperwork with no faults or damage found and the car was taken away. Since then we have had a letter from FCA demanding £48 for damage to the bonnet and £169 for something called Multpart cover? We asked FCA to explain these charges and they eventually came back with a goodwill gesture offering to drop the £48 but stating they are entitled to claim it where damage is found under subsequent inspection, i found this dubious but we got the result we want on the costs for damages that patently weren't there. As for the Multipart cost they say this the cost of the GAP insurance which was included in the finance arrangement but as a separate amount to the cost of the car. The GAP insurance was £250 plus £17 interest, so £267, assuming the cost of the GAP was spread over the term, half of which (plus a bit) we had paid I might understand a cost of £133.50 but given their obvious propensity to try and get whatever extra they can I find myself questioning this charge. Their own paperwork states all outstanding monies are to be paid prior to collection of the vehicle, which they have had for months now...Where do I stand with offering them whatever I can get in a rebate from the Insurer and also reclaiming our £70, which I believe they actually weren't entitled to charge either.

[R0b]

Re: Voluntary Termination extra payments

You don't need to pay for the GAP insurance, however as you have already paid for the £70 the only way I think you are going to get that back is by going to court. FCA will claim that they would be entitled to the £70 for collection but that clause is void when you VT under section 99 of the CCA. Your liability is limited to 50% of the total price payable and that's it.

If you paid the £70 under duress you could have a cause of action but also in restituton as they have falsely stated that you must pay it when in fact you do not.

[FraserMowlem]

Re: Voluntary Termination extra payments

Many thanks for your response R0b, in their letter of explanation they state that the primary loan (and that subject to VT) is for the Goods (car in this case) and the money for the insurance is a secondary loan for a VAP (value added product) but this was added to the total amount with respect to calculation of repayments! I just don't understand where they get the number from, let alone whether they're entitled to it at all? It should at least be half the amount loaned I would have thought! I guess the £70 collection fee is gone, wish I had done a bit more homework before agreeing to pay it!

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Is there any legislation I can quote reference not paying the multipart cost for the remainder of the GAP?

[R0b]

Re: Voluntary Termination extra payments

Many thanks for your response R0b, in their letter of explanation they state that the primary loan (and that subject to VT) is for the Goods (car in this case) and the money for the insurance is a secondary loan for a VAP (value added product) but this was added to the total amount with respect to calculation of repayments! I just don't understand where they get the number from, let alone whether they're entitled to it at all? It should at least be half the amount loaned I would have thought! I guess the £70 collection fee is gone, wish I had done a bit more homework before agreeing to pay it!

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Is there any legislation I can quote reference not paying the multipart cost for the remainder of the GAP?

Sorry Fraser, didn't realise you responded to this. Section 99 / 100 of the CCA clearly states that you are liable for only the 50% of the total amount payable under the agreement. If they have combined the GAP insurance as part of the total amount payable and decided not to set up a separate agreement on it then bigger fool them. They can't seek to reclaim the insurance by bundling it together with the total price and then decide they want a portion of the price back because its a separate product!