Hi,

I'm about the hand my car back to the finance company under the provisions above. I've enquired and they sent me a letter. I just want to clarify a few points that dont seem quite right. I've been trying to find a copy of the Consumer Credit Act 1974 online but couldn't. I beleive section 100 is the relevent one.

Return of the vehicle - you will need to make an appointment to return the vehicle to our agent. Appointments are on Tuesdays only and subject to availibility. Can they do this?

You must attend this appointment in person and the vehicle must be fully comprehensively insured, have a valid MOT and current road tax. The vehicle wasn't taxed when I bought it, I paid for it myself so why should they get 7 months free tax?

The return process will take no less than one hour, ensure you have sufficient time for its completion. I would love to find that the act simply states the goods must be returned to the lender, i.e. I take the car, hand the keys to reception and then leave

Thanks

When I handed my car back to Welcome I waited until they were closed as it wasnt insured or taxed it had a police escort (friends in high places lol) and I dumped it there shoved the keys thru the door along with everything else and never heard a peep from them ever again lol

I did this quite a few years ago rang them up to confirm this was posible(after checking with TS) the car was only worth aprox £1000 and outstanding finance

was £3100

Basically they said I could but had to give them 30 days notice in writing which I did they offered to pick it up (£150)or I could deliver it back to them in a roadworthy clean condition took tax disc out before handing over the keys

I arranged a date and time to drop it off got a signed reciept they even marked by credit file as settled!

Taken From the National Debt Helpline:

You have the right to terminate and end your agreement under Section 99 of the Consumer Credit Act 1974 at any time before your last instalment is due, although you will have lost the right to terminate your agreement if the creditor has already terminated it or if the full balance of the agreement has become payable.

If you decide to terminate your agreement voluntarily and hand back the goods to the creditor, you should only have to pay up to half of the total amount payable under the agreement, minus sums that you have paid and sums that are due. Sums that you have paid include any deposit plus the instalments that you have paid: sums due are any arrears/missed payments due at the time of termination.

The one half or 50% figure is stated on the agreement in the box headed "Termination: Your Rights".

You will then also owe any arrears (missed payments) plus damages if you have failed to take reasonable care of the goods (over and above normal wear and tear). The creditor might argue that there will be an extra charge for damage or unusual wear and tear. It is important to look at any charges to see if they are reasonable.

It is very important that you tell your creditor in writing that you are terminating and ending your agreement. If you do not terminate in writing the creditor will not treat it as a voluntary termination and you will not be able to benefit from the 50% limit on your liability. Keep a copy of the letter of termination in case you need proof of this later. which you may want to adapt and to send to your creditor when terminating your agreement.

Warning: You may have a default notice sent to you by the creditor because you are behind with the payments on your agreement. Once the time has run out on the default notice this may mean you will have lost the right to end the agreement voluntarily and return the goods yourself. It depends upon your agreement. Your creditor may have called in or "terminated" the agreement when the default notice runs out. Some agreements say another notice to terminate the agreement has to be sent to you after the default notice has run out. Phone us for advice.

Warning: You do not need to have paid the "50%" to be able to terminate your agreement although some creditors say you do. All that is necessary is for you to give notice to the creditor in writing that you are terminating the agreement.

Also, where an Hire Purchase agreement contains a separate subsidiary agreement for insurance products (e.g. for payment protection insurance and/or a guarantee or warranty), it is not necessary to pay off this agreement before terminating the Hire Purchase agreement.

However, terminating/ending your Hire Purchase agreement does not terminate a subsidiary insurance agreement. You will remain liable to pay it.

Some creditors try to charge you for collecting the goods after the agreement has been terminated. It appears that this is not allowed under the Consumer Credit Act. If asked to pay an additional charge, you can complain to your Trading Standards Department or phone us for advice. Your agreement may say that you have to return the goods to your original supplier or somewhere similar. You should not be asked to return the goods further away than is reasonable on the grounds of cost and distance.

I've been trying to find a copy of the Consumer Credit Act 1974 online but couldn't. I beleive section 100 is the relevent one.

I believe its 99

Snapfish: Share:Registration

I believe its 99

 

Snapfish: Share:Registration

 

 

It is indeed - online version

http://www.johnantell.co.uk/CCA1974.htm

99 Right to terminate hire-purchase etc agreements

(1) At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement.

(2) Termination of an agreement under subsection (1) does not affect any liability under the agreement which has accrued before the termination.

(3) Subsection (1) does not apply to a conditional sale agreement relating to land after the title to the land has passed to the debtor.

(4) In the case of a conditional sale agreement relating to goods, where the property in the goods, having become vested in the debtor, is transferred to a person who does not become the debtor under the agreement, the debtor shall not thereafter be entitled to terminate the agreement under subsection (1).

(5) Subject to subsection (4), where a debtor under a conditional sale agreement relating to goods, terminates the agreement under this section after the property in the goods has become vested in him, the property in the goods shall thereupon vest in the person (the “previous owner”) in whom it was vested immediately before it became vested in the debtor:

Provided that if the previous owner has died, or any other event has occurred whereby that property, if vested in him immediately before that event, would thereupon have vested in some other person, the property shall be treated as having devolved as if it had been vested in the previous owner immediately before his death or immediately before that event, as the case may be.

I have a private lease car, I am at 12 months of an 36 month contract, paid £697.14 deposit prior to start of the agreement, which included 3 months rental in advance. Can I excercise my rights under Sec 99 Right to terminate hire-purchase agreements ?

No - Private Lease and Hire Purchase are two comnpletely different animals.

It is a lease hire, regulated by the consumer credit act 1974

In that case, the Hire Purchase provisions will not apply.