Query about Voluntary Termination of a PCP

[Goras999]

Hi
I have just started the process of a VT with my car finance company. They have given me a end date of 28th Feb 2017 for it to be completed. They tell me that i have to keep making payments to my account until the termination has finished. I am already over the required 50% to trigger the VT. Do i have to make this next payment? if so that would be £262 over the %50 of the agreement. They have already told me that i would be liable to pay for car collection services which i have told them i am not liable to pay, however they say that any money they owe me the charges will be taken out of that figure. Which in affect means i have paid for their collection fee.

So can i miss this next payment?

Thanks

Frank

[R0b]

Re: Query about Voluntary Termination of a PCP

Why have they given you a date of 28 February, did you provide that date? Once you give notice to terminate it would be terminated with immediate effect, unless you have stipulated a specific date for it to end. I am assuming that they suggested this date because it falls after the next payment date?

What charges do you think they may owe you? If they do deduct collection charges then you have to either accept it or take them to court to recover the balance for unjust enrichment when they had no right to those charges.

[Goras999]

Re: Query about Voluntary Termination of a PCP

I rang them today and did a VT over the phone. I have paid %50 as of today. They are sending me some paperwork through the post which i must complete and send back. They say that the VT process will complete on the 28th Feb. Until that date they also say i have to keep making payments on my account and the next payment is due 18Th feb. Do i have to make this payment as i have already reached the %50 of my agreement. They did say that will refund me any over payments but will take any fees out of any money they would owe me. This would be the collection fee of the car at £125 plus VAT.

[R0b]

Re: Query about Voluntary Termination of a PCP

Strictly speaking, by law, VT has to be done in writing and if you don't follow the rules if you fail to comply then they will be able to recover the missing payment because you did not comply with the law on VT.

I would suggest you write to them immediately and confirm that the agreement is terminated with immediate effect - writing can also include by email too and there are some template letters you can find here -> http://www.legalbeagles.info/forums/...on-Your-rights

You do not have to accept their termination date as the date of termination does not go by when they choose to process it but when the notice was given. If you do accept their termination date then you are bound to make any payments until the agreement is terminated.

When you VT you are not entitled to recover any payments above and beyond the 50% mark, the lender can keep the sums.

[Goras999]

Re: Query about Voluntary Termination of a PCP

OK Thanks