Termination of Hire Purchase Agreement under S.99 Consumer Credit Act

[Rubydooby]

Good Evening I have recently become single again and am looking to terminate a Hire Purchase Agreement with RCI Financial Services. I telephoned them and asked for a settlement figure which they gave me at £2,791 plus excess mileage of £120.

Looking at my agreement the following details were recorded:-

Total cash price of goods - £18,242.99
less cash deposit/ part exchange - £2,451.76

Amount of Credit - £15,791.23

plus Interest Charges - £2,748.08

Total Amount payable - £20,991.07

Under the termination clause there is a figure of £10,495.54 quoted.

I have made payments of £8,012.36 to date. I read somewhere that the deposit can be included as part of the payments made calculation. Is this the case or have I a further £2,483.18 to make ?

If I exercise my right or when I do would they be entitled to make an Excess Mileage Charge ?

Thanks in Advance

[Guest]

Re: Termination of Hire Purchase Agreement under S.99 Consumer Credit Act

Hi
It sounds like you are eligible to return your car under the voluntary termination entitlement (section 99) without any further cost.

Have a look here. http://www.legalbeagles.info/forums/...t=mr+peterbard

You can return the car at any time under section 99, you do not have to have paid 50% of the total credit price, but you would owe it on the termination of agreement(or thereafter).
In your case however it seems that you have already paid half, as this amount does include any deposit or part exchange.

Ignore anything they tell you about balance owing on the agreement , as long as your repayments are upto date you owe nothing on a VT. They are trying to get you to voluntarily surrender the vehicle, which is a different and in your case, a more costly process.

I would send the letter on the thread indicated recorded delivery, personally I like to send these off so they reach the creditor half way through the billing period(month) and give them 14 days, then state that the next payment will be the final payment on the account. This is a cause of argument, but to me it gives them no leeway for coming back later and saying you owe money on the agreement.

Regarding excess millage charges they can bill you for these after the car goes back, the VT is not conditional on you paying anything it is your right.

Any legitimate excess mileage charges must be itemized on your agreement, and if they are under 12 k a year I would not pay them personally, the act says only that reasonable care must be taken of the goods, according to the motoring organisations average mileage is about 12-15k, so them saying anything less than this is contrary to the legislation and not allowed.

Good luck and remember they are not on your side in this, they rarely are but if you stick to your guns they have no choice but to comply.

[Rubydooby]

Re: Termination of Hire Purchase Agreement under S.99 Consumer Credit Act

Thanks Andy.

Just done my calculations and am £32 short of the Termination amount within the Agreement so presumably if I send them a cheque for this amount at the same time I send termination letter am still okay ?

In addition will this affect my Credit Score in any way ?

Thanks for your continued assistance.

Regards.

[Guest]

Re: Termination of Hire Purchase Agreement under S.99 Consumer Credit Act

Thanks Andy.

Just done my calculations and am £32 short of the Termination amount within the Agreement so presumably if I send them a cheque for this amount at the same time I send termination letter am still okay ?

In addition will this affect my Credit Score in any way ?

Thanks for your continued assistance.

Regards.

No, they sometime attach vt marker, but is not considered as a contra indicator for most creditors. If it does effect your credit you can make complaint to the individual company, you should not be penalized for executing your statutory rights of course.