VT Barclays HP Agreement

[Alext]

Afternoon everyone. About mid-December I'd sent the VT notice letter. I have made about 6 monthly payments over what was required to reach 50%, so I had cancelled the DD straight away. Car was collected in January, and sold on the 2nd of February.
Today I got a letter asking for
1)arrears between last payment made in November and when the car was actually sold, saying their T&C's are saying I'm still liable for the contractual monthly payments until vehicle is sold and 2) the shortfall between the estimated average valuation and the amount that the car was sold for at auction, shortfall to be caused by the condition of the vehicle.

I've rang and complained about arrears, saying that from the date on my VT notice I'm no longer liable and I was told that as per TC I need to make payments until VT is finalised.

What do you think about this?

[R0b]

Re: VT Barclays HP Agreement

Afternoon everyone. About mid-December I'd sent the VT notice letter. I have made about 6 monthly payments over what was required to reach 50%, so I had cancelled the DD straight away. Car was collected in January, and sold on the 2nd of February.
Today I got a letter asking for
1)arrears between last payment made in November and when the car was actually sold, saying their T&C's are saying I'm still liable for the contractual monthly payments until vehicle is sold and 2) the shortfall between the estimated average valuation and the amount that the car was sold for at auction, shortfall to be caused by the condition of the vehicle.

I've rang and complained about arrears, saying that from the date on my VT notice I'm no longer liable and I was told that as per TC I need to make payments until VT is finalised.

What do you think about this?

Why are they claiming November's payment if you gave notice in December, did you not pay in November?

They are talking rubbish about being liable for the monthly payments until the vehicle is sold as they are about the shortfall of the estimated average valuation and what it was sold at in auction. Depending on the contents of what you said in your notice to Barclays about terminating depends on when the agreement terminated.

The CCA does not state a minimum notice period and neither would the contract (I assume) so you could give notice with immediate effect and if you did, then the agreement ends there and then. There is no such thing as waiting for the VT 'to be finalised', and once you give notice that's it, there's no going back and it's terminated. It is not up to Barclays to determine when and on what date the VT takes place.

Have they told you this over the telephone or in writing?

[Alext]

Re: VT Barclays HP Agreement

I have paid November, (they're not claiming November) but I cancelled DD in December, because the VT notice was sent mid-December, before yhe payment was due.
( I used the template on this website). I have told her that from the date shown on the VT notice, my liability ends. She said no, as their TCs state I have to carry on paying until vehicle is sold, which in my head defeats the purpose of VT, assuming the car takes 5-6 months to sell. I've asked her to post those TCs, however CCA should prevail, shouldn't it?

[R0b]

Re: VT Barclays HP Agreement

I have paid November, (they're not claiming November) but I cancelled DD in December, because the VT notice was sent mid-December, before yhe payment was due.
( I used the template on this website). I have told her that from the date shown on the VT notice, my liability ends. She said no, as their TCs state I have to carry on paying until vehicle is sold, which in my head defeats the purpose of VT, assuming the car takes 5-6 months to sell. I've asked her to post those TCs, however CCA should prevail, shouldn't it?

If you have given notice and they have received it, then the agreement ends at that point any they cannot recover any sums due beyond the date of termination other than what the Consumer Credit Act allows. If the terms and conditions say that you are required to pay until the vehicle is sold, it seems to be an unenforceable minimum payments clause. In Financings Ltd v Baldock 1961, the following was said:

"The owners by such a clause are really seeking, on an early termination of the hiring, to recover damages for loss of future rentals when they have not lost any. They have no right to future rentals after they have terminated the agreement and got the vehicle back."

The above point can be made in your circumstances. They are trying to recover additional sums which is beyond what the CCA allows. Once the agreement is terminated, any future instalments cannot be recovered.

[Alext]

Re: VT Barclays HP Agreement

Thank you Rob. I have spoken with someone else from Complaints Dept, as I have complained about the charges. I was told the charge is because they received the notice on the 5th of January, so therefore I owe December's payment. Now, I've asked her how did they come up with the figure, as the amount they're claiming is almost double the amount of the monthly payment and 5th of January was the date when the vehicle was collected, not the date of the notice. She said that's all she knows, but it looks like there are some internal miscommunications and she'll investigate further.