Thread: Voluntary Termination

When terminating HP agreements, do you include the interest charge in the total amount payable?

ie, I want to end my car HP agreement and I am calculating the total amount I have paid so far (to check if I have paid 50%) but I am unsure if it is 50% of the actual amount borrowed (£4750) or 50% of the amount including interest (£5860).

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It is 50% of the TOTAL amount payable under the agreement and also includes any deposit. You can find the exact figure in the termination clause on your h.p. contract. Add up what you have paid plus any deposit. If you are a little bit short of the amount required put a cheque in with your termination letter. One thing to watch out for - add-on products such as GAP or CPI are usually done on a separate CREDIT agreement i.e. not HP and will still have to be paid for.

Hi Guys, i am just about to write to my finanxce company to ask for a vt, after hearing all these weird stories, i am not looking forward to the response.

Hi there,

I am about to try and terminate my HP contract for my car with DaimlerChrysler under the 50% rule, but am a bit nervous about what invoking the VT/Section 99 of the Consumer Credit Act will do to my credit rating.

I've read some posts where people say ending a finance agreement this way affected their rating and even got them turned down for mortgages 7 years later..!

Help?

Thanks in advance, Tracy

I got a car from welcome finance, on HP...i'm 1.5 years into the conract and now have a company car which is cheaper, i dont want the welcome finance car anymore...what do ido?

Hope someone can advise mea little on voluntary termination. I bought a car via Black Horse Finance 3.5 years ago. Agreement due to complete in December (ish) this means I have obviously paid over 50%.
I have several questions on this issue that I hope somebody has the answers to.

Firstly a couple of years ago I lost my job. Black Horse agreed to two reduced payments and sticking the remainder onto the end of the term. After that I reverted to normal payments and apart from the extra added onto the end of the term am completely up to date. Would this affect my ability to VT?

I believe that VT means that the company effectively get 50% of the debt paid plus return of the car. As I have paid around 75% of the debt would I get anything back?

Does doing this affect my credit rating?

Hope someone can answer my queries

Thanks in advance

I plan to hand my Motor back in a few months time with Black horse and I wanted to know the same as you...

Does handing it back affect your credit rating.
I am sure they advise it does not but I am sure a car dealer advised that it does affect your credit rating...

Does anyone know if the car has been paid over 50% and the vehicle handed back in good condition, does the debt just say settled on your credit rating?

can anyone help out of this loophole. I VT a contract in 2004, when i sent the letter of confirmation to the finance company they said that all was fine and in time they would send someone out to inspect the car and that i was no longer to make any payments on my agreement as i had reached over the 1/2 way point. So i did that. then they took 2 months to send someone out to inspect the vehicle, which they did had to get a service and a few other little things done. got them done i was then asked to drive the vehicle to an auctions in mancester. done that, a few days later got a phone call saying we owed them £15 to get radio decoded. paid that. asked if that was all that was owed. yes was the reply. that was is 2004. in july 2008 recieved a phone call from Marlin Finance sayin i owed them 3368 for the car. when i queried who they were and what was it for they said for a astra that i had in 2004. i told them that i had vt that contract and owed them nothing, they stated that Jurie finance had gone bankrupt and they had bought the debt. i had to send a letter explaining to marlin finance explaining everything, they then infromed me that because i (although advised by one of jurie finance reps had advised me tp cancel my dd )missed the payments on my agreement he then told me that because of the the missed payments they shouldnt have let me vt my contract. is should of went into repossesion. (how can they reposs something from me when they have got it as they had agreed the vt.

i have requested information from them on numerous occasions and the last time the reply was, im sick of this (from one of their reps)

any advice would be great as i dont know whether its worth fighting in the courts or shall i just pay it.

Originally Posted by MondeoST24

Fight it. Its nonsense.

i got in touch with FSA on mon 26th Jan and they have advised me that they will inform marlin financial services that i have made a complaint about them. Then today i recived a letter from marlin saying that unless a payment or offer of a payment is made they will make me go to court to declare myself as bankrupt. i mentioned to them that i have made a complaint about them to FSA, i was then told that he will be informing admin that they may need to get correspondance ready for FSA (correspondance that they didnt claim to have when i requested it) he then told me that i coudl have a copy of the contract that they claim they didnt have and a copy of all payments made. which they also claim they didnt have. Am i right to ask for all correspondance relating to the contract?

can they make me declare myself as bankrupt for £3361 and can they send bayliffs out?. How can they justify the fact that they are saying i missed 2 payments and that they shouldnt have let the vehicle be V. T it should have been repossed, they wouldnt repo a car after two missed payments, there was also a converstion earlier in the disagreement where a memebr of staff said that i am not the only person that this has happened to and another advisor told me that they shouldnt have let the VT stand. but they did and as far as im concerened if they informed me that they were going to repo the vehicle i wouldnt have vt it an got a ccj or any other status against my name. HELP IM GOING IN SANE>

Section 94 of the consumer credit act deals with early settlement and gives debtors the right to discharge their indebtedness at any time. The amount that the debtor must pay is is the amount payable under the agreement minus any rebate allowable under Section 95. This rebate is based on an acturial formula and is highly complex.

In HP agreements one can return the goods after 50% of the total amount payable under the contract has been paid, but watch out for any default charges and as said above, any PPI etc that is actually paid up front to the insurer by the finance company.

i have paid well over 50 per cent of hp wanted to v/t but have been told as i missed two payments i defaulted with the company, and im not allowed to v/t

this carnt be right can it??

You can legally VT an HP agreement at any time before the final payment is made. You dont have to have paid 50% to do so. You will still have to pay the difference up to the 50% but once the VT has been done you can just treat this as any other credit debt.

Originally Posted by keelclose

i have paid well over 50 per cent of hp wanted to v/t but have been told as i missed two payments i defaulted with the company, and im not allowed to v/t

this carnt be right can it??

any help with this folks

thanks

is there a standard letter format to apply for a VT.
and are you entitled to a reduction of the interest as in early settlement.