VT and confusion over 50% of the amount payable

[signify]

Hello,

New to the forum and hoping someone can help, just a quick questions really. I have written to the finance company to VT my contract because I believe that I have reached over 50% mark of the contract. It states on my contract that in order to terminate my agreement the sum is £4,740.06 that would need to be paid. I have confirmation that I have paid £4,935.42 but they claim I have another £570.23 to pay to VT. this confused me because I know that half the cost of the finance is £4,740.06. after going over the contract it turns out that they are asking for the mechanical breakdown and GAP insurance which is almost another £2,000 on top that was taken out with the vehicle at the time which would make the VT halfway payable amount of £5,310.29 and not what is stated on the contract of £4,740.06.

Surely, if states that I have to have covered £4,740.06 to VT my agreement, then this is what I have to pay, or can they just add to that figure to include my insurance policies because they had the wrong figure down on the agreement?

Thanks in advance.

[R0b]

Re: VT and confusion over 50% of the amount payable

Hello, who is the finance company?

You will have a termination statement like the one below, which will state what you need to pay in order to absolve you of any further liability (see the red box). Even if you have not paid this, you can still terminate at any time and then pay the outstanding balance.



In your case, if the amount states that if you have paid £4,740.06 then that is the amount to reach and you will pay nothing more (except any damage beyond wear and tear plus overdue instalments). They can't then charge you on top for GAP insurance, unless it was a separate agreement to the HP agreement, but even then that does not prevent you from terminating.

Sounds like a scare tactic to me and I would respond accordingly.

[signify]

Re: VT and confusion over 50% of the amount payable

Hi Rob,
Thanks for the reply, the company is Advantage, and yes the image you have shown me is exactly where I saw the termination statement on the contract which shows £4,740.06. I have wrote to them and told them this I have even copy and pasted the termination statement amount from my contract in my email to them but they have said that the £570.23 is non negotiable. do I respond to say I am not paying this and if I refuse to pay how do I VT the agreement if the issue is ongoing?

The insurance policy came out at the same time of the agreement and not separately.

Thanks for your help.

[R0b]

Re: VT and confusion over 50% of the amount payable

I am assuming then the GAP insurance would be tied up within the agreement itself, and if that's the case then it's tough luck on advantage, they ought to have entered into a separate agreement for GAP.

That being said, if they have confirmed in writing that the amount is non-negotiable then that is potentially an aggressive commercial practice under the Consumer Protection From Unfair Trading Regulations as it is misleading and you could report them to Trading Standards. Secondly, they cannot prevent you from terminating simply because there is an outstanding balance to pay. The Consumer Credit Act allows you to terminate at any time during the agreement before the final payment falls due. It is not subject to you making 50% of the payments first.

I would respond by email something along the lines of the above, make it clear that it is a formal complaint and refer back to your previous email stating that the agreement is now terminated. If they continue to state that the agreement is not terminated and that £5,310.29 is owed before it is terminated then ask for a letter of deadlock confirming their position so that you can make a further complaint to the Financial Ombudsman and also seek compensation for their unacceptable behaviour.

[signify]

Re: VT and confusion over 50% of the amount payable

Thanks for your help Rob, I will respond and and will feedback their response.

just on another note I also have some sort of insurance liability as well but I don't understand what it means, could you explain what the below means that came with my VT response

In order to settle the insurance element of your agreement and claim any rebate to which you are entitled, you need to pay the amount set out below. This will also ensure that you have no further liability under the insurance element of the contract.

The amount required to do this is £1122.66
Less Rebate £1042.59

Total amount payable under this section £80.07

[signify]

Re: VT and confusion over 50% of the amount payable

Hi,
Just had response from the finance company and don't seem to be getting anywhere with my VT as they insist I can't VT until I have met the 50% mark which they claim is more than on my contract, this is the email they replied with despite me saying it's an official complaint and to send me a deadlock letter to take it further.

Thank you for your email to clarify you have made 21 payments on the account, if you had paid 24 payments you would have paid 50% of the agreement and been able to VT without owing any further funds.

If you wish to continue with your agreement until the 50% mark has been reached please continue to make your full contractual payments, as of todays date we have not terminated your agreement and the contract you agreed is still in place as per the terms and conditions.

Is there anything further I can do now?

Thank you

[R0b]

Re: VT and confusion over 50% of the amount payable

The choice is really up to you. Section 99 of the CCA makes it clear tht you can terminate at any time, you do not need to pay 50% before you can terminate but that it your maximum liability. Section 173 also says that they cannot overrideout any rights you have under the act.

You can push write back and explain this, that you will now terminate your direct debit as the agreement is now terminated and you will make arrangements to repay the remaining sums back. they also require to collect the car, and if they refuse then you can send them a further reponse by stating that if the car is not collected within 28 days then you will sell the car - they might at that point take notice.

Alernatively you could make a formal complaint to them which they have 8 weeks to to and then follow up with the Ombudsman by which time you probably would have paid 50%.

If you require help on drafting something, I am happy to assist if you post up a draft, there are plenty of example letters in this sub-forum http://www.legalbeagles.info/forums/...nce-and-Issues

Though if you want to send the letter abut selling the car there is a very specific one you need to prepare to cover the points.

[signify]

Re: VT and confusion over 50% of the amount payable

Update.

I have just decided to pay what they claim is the remainder to cover 50% of the agreement, to be honest i just want the agreement ended, I know what you say about argue the case and cancel teh DD etc but i just don't want them to starting adding charges for missed payments and things and have a dispute for a bigger sum.

They have said that the car will now need to go to a local Peugeot dealership on Saturday which is in my town to undergo an inspection. i just hope they don't start adding more charges for what they may say is repairs to the car.

Thanks for help all.

[seduraed]

Re: VT and confusion over 50% of the amount payable

I have come across this several times in the past. It is usually that the gap and or PPI are included in the , monthly payment although you may not see it. Look carefully the may be a box somewhere saying you want gap insurance. This is a separate contact and you have had a separate insurance certificate. You need to calculate the monthly payments made deduct the amount you pay monthly for gap and that will be the amount you can VT . Fifty percent in these cases often occurs at about month twenty seven.