Motonovo

[Gordon Rumsay]

Hi there! My stepdaughter has an agreement with motonovo finance which she can no longer afford, and as she is just over half way with her payments I suggested voluntary termination. She called to discuss this option with Motonovo and was told that this would adversely affect her credit file for 6 years and that she would be liable for any shortfall in the value of the car at auction. So she still has about £5500 to pay, they will get about £3000 at auction and she is liable for their £2500 loss.

Surely this can't be correct. Please advise

[nemesis45]

Re: Motonovo

Hi there! My stepdaughter has an agreement with motonovo finance which she can no longer afford, and as she is just over half way with her payments I suggested voluntary termination. She called to discuss this option with Motonovo and was told that this would adversely affect her credit file for 6 years and that she would be liable for any shortfall in the value of the car at auction. So she still has about £5500 to pay, they will get about £3000 at auction and she is liable for their £2500 loss.

Surely this can't be correct. Please advise

Good morning, welcome to LB,

I'm tagging someone who I'm sure will be able to help.

Bump for [MENTION=71570]R0b[/MENTION]

[R0b]

Re: Motonovo

Hello,

What Motonovo are saying is false, and can be considered fraudulent. VT does not affect your credit rating at all, but they are entitled to record why the agreement was terminated and so some companies specify that the customer VT the agreement. Sometimes this is done to flag up to other lenders that you may be a possible risk of VT'ing the agreement at some stage (in which case you may be offered a fixed loan instead which gives no rights of VT so be careful) but it definitely does not affect your credit rating at all. I have VT'd a couple of times myself and have had no issues of obtaining credit for another car although if you try again with the same lender they may be reluctant to give you credit or potentially increase the interest rate.

The liability is capped at 50% of the total amount payable, though Motonovo are entitled to compensation if the car is not reasonably taken care of whilst in possession given the car's age. I suspect this is what they meant when speaking to your stepdaughter but telling her that she is liable for the shortfall of the car made at auction is a whole lot different to saying that she may be liable for the cost of any damage beyond reasonable.

Suggest you take a read of the link below which should give you everything you need, and try to keep everything in writing where possible. If it's not possible to do so and it is important then your stepdaughter could record the call as any further evidence.

If you have any questions you can tag me by using @R0b (its a zero not the letter)

http://www.legalbeagles.info/forums/...on-Your-rights

[Gordon Rumsay]

Re: Motonovo

Thanks R0b

I'm putting the letter together tonight to cancel the agreement. I've calculated that she owes £94.92 to take her to the figure quoted in her agreement. The direct debit for December is due on 14th for £184.96. Should I cancel this and send a cheque for £94.92 or let the direct debit stand?

Please advise

Regards

Gordon

[R0b]

Re: Motonovo

Thanks R0b

I'm putting the letter together tonight to cancel the agreement. I've calculated that she owes £94.92 to take her to the figure quoted in her agreement. The direct debit for December is due on 14th for £184.96. Should I cancel this and send a cheque for £94.92 or let the direct debit stand?

Please advise

Regards

Gordon

apologies for the delay, I would cancel the DD once you have given notice and taken into account postal times (keep proof of postage receipt) and then send a cheque explaining how you have calculated the outstanding amount in full and final settlement of the agreement.