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Told we can't VT finance agreement? - The Funding Corporation
My husband is trying to VT his car, it was on a 3 year finance deal with The Funding Corp.
We have been in financial difficulty and have now started to get back on track, however we are paying too much for the car, i was made redundant and its a struggle.
He fell behind on his payments and was issued a default notice, and a letter to say they terminated the agreement. He immediately payed his arrears and they continued to take their money... this has happened 3 times in 2 years, but always brought the account back into line and continued the payments as normal, no letters appeared to say things had changed and once the payments were back on track everything seemed fine.
He called them today to find out if he has payed enough to enable him to excercise VT(he's payed over 2 years worth of payments), and they told him he now cannot end the agreement with VT as it was originally cancelled with the first default letter they sent.
We're confused, we don't understand how they can remove the VT from his agreement that he signed originally if he's up to date and paying as normal and he has had no new agreements sent.
They said they were within their rights to demand full payment and take the car and we should consider our self lucky(!) but then in next breath when i ask what agreements he's now paying against - as we have recieved no other communications to say he's now on this 'special consider yourself lucky agreement - and we have agreed to pay as we were on the original agreement, they say its still the HP agreement he originally signed... ??? confused or what.
They said they will not accept a VT the agreement has been terminated by them last January and 'they' have made a agreement that he can continue to pay the balance with the payment amounts originally agreed - and he's still got the car. I just don't understand.
Should he have signed a new agreement, should they have modified his old one, should he be making payments at all considering they say they've terminated his original one.. so they say, even though he's still paying against it as far as he was aware until he tried to VT
Re: Told we can't VT finance agreement? - The Funding Corporation
Very confused!
No more than the rest of us.
If the agreement was cancelled there would have been either a demand for full payment or a nice man knocking at the door saying he had come to reposses the car.
You have had neither so you must be still under the original agreement as you have signed no other.
Send them a recorded delivery letter asking them for a copy of the agreement and send a £1 cheque with it. You will then get a copy (exactly like you already have) and that will be the agreement in force.
If you haven't signed anything then it is not an agreement.
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Re: Told we can't VT finance agreement? - The Funding Corporation
Just to clarify.
He fell behind on a payment they issued a default notice with a date which he should clear the arrears by, he then recieved a letter which states:
In view of your failure to comply with the terms of the Notice of Default served in accordance with Section 87 (1) of the Consumer Credit Act 1974, the hiring under the HIRE PURCHASE agreement is now TERMINATED.
You are no longer in possission of the goods with our consent. Please send all correspondence to the top of the page.
He then called them paid his arrears, and continued on as normal, no furthur communications. This happened a further 2 times, but now his account has been cleared and running as normal and has been for at least 6 months, he paid up again as soon as the above letter arrived, and recieved no other agreements to sign, just payed up to clear and continued on.
We've now just been told point blank that they 'will not accept a voluntary termination on this account' - as the agreement was terminated with the first letter sent in January 2007.
When i asked about what agreement he is now paying against they said it is 'still a HP agreement and he's still covered by the Consumer Credit Act' - except he now can't VT. 'We're lucky they've not demanded full payment'
Hope this makes things clearer.
Coniff, it will be the same copy as they have said to me he's still on his original agreement when i questioned the fact that he's signed nothing else, but then just kept repeating "we will not accept a Voluntary Agreement on this account - he's lost his rights as we have terminated the agreement"
ETA: I have just spoken to the National Debtline and they have said the above is correct, as the HP agreement was terminated that The Funding Corporation have the right to either demand the full balance or allow us to continue with the original instalments to pay off the balance, and as the original agreement is now terminated we CANNOT use Voluntary Termination now as there are no HP agreements in place, its just an agreement Funding Corporation have set up to allow us to keep paying.
Still non the wiser... if this is the case, what a sneaky way to get out of a VT, terminate at first opportunity and lead us to believe the agreement still stands, by sending no further information, and taking payments as normal. !
Re: Told we can't VT finance agreement? - The Funding Corporation
Hi Joedee2k,
I'm having problems with another car finance company over whether or not I can VT my agreement, so you have my full sympathy!
The legal position is quite clear - you can VT up to the date a default notice expires, but after that you can't. However in this case you've cleared the arrears and continued paying the monthly instalments - there has been no demand from The Funding Corp to return the vehicle, or an attempt by them to use the accelerated payments clause under the agreement to pursue you for the full amount due.
As you can see it is an OFT consultation document on voluntary termination. On Page 30 a case is mentioned where a termination notice was issued two years prior to a VT request and the finance company therefore refused to allow VT - however the arrears had been cleared and therefore (after two Trading Standards departments and the CAB had got involved!) the matter was resolved. It would certainly be worth considering trying the same tactic - see what Trading Standards and/or the Financial Ombudsman Service reckon - make sure you threaten the Funding Corp with this as well!
Another idea would be to check the default notice to ensure this is compliant with the CCA - if it isn't then the termination notice will be invalid in turn. Also it would be worth issuing an SAR to The Funding Corp to see if they've added charges to your account when you were in arrears (most of these finance companies do - £100 a letter, etc). If the arrears they were demanding under the default notice include unlawful charges then the whole default notice is invalid - once again that makes the termination invalid too.
If the original termination notice was invalid then of course they'll have to let you VT.
All is not necessarily lost, therefore - but you'll have to do a bit of homework to check the situation out. I hope this helps and good luck with it.
MC
WOOLWICH -S.A.R - (Subject Access Request) sent 03/03/07 LBA sent for non-compliance with Data Protection Act 28/04/07
ABBEY - S.A.R - (Subject Access Request) sent 03/03/07 8)
Dubious website businesses Conterfeit alcohol and cigarettes Illegal sales of alcohol, tobacco, knives & fireworks to children Cowboy builders or tradesmen Car clockers Counterfeiters Aggressive selling
Never phone or accept phonecalls from debt collection companies.
If you don't believe you can win, there is no point in getting out of bed.
_________________________ ________________ _________________________ ___________________
Re: Told we can't VT finance agreement? - The Funding Corporation
me again...
We've had some more information, we have been told to ask F.C to put the reason for refusal of the VT in writing for us, also we've requested the full statement of the account (for the charges) and also the dates and information of all the communications - default letters etc. (they charged us £11.00)
When i spoke to the FC yesterday they stated that as the agreement was terminated in Jan 2007, rather than go to court to get an order for the cars return from us they have agreed that OH can pay back what he owes in installments rather than in a lump sum - and keep driving the car.
He explained that they are still allowing him to 'hire' the car from them by him paying the installments but he's not on an HP agreement as it was terminated.
If this is the case and he's not on an actual HP agreement WHY then can he just give the car back?
Is there any other way he can get rid of this bl***y car!
Told we can't VT finance agreement? - The Funding Corporation
and its a struggle.
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