Thread: Termination:Your rights

My car is financed by British Credit Trust. I called them to know if it will effect my credit rating if i exercise my termination right,they told me yes it will because i have not kept to the terms of agreement also they will never Finance any car for me again.

I have the agreement in front of me now and it states that i have the right to end this agreement as long as i have paid half of the total amount payable and have taken reasonable care of the goods.

I guess they are not happy to let me go since i am on an APR of 37.1%.

Please i need advice on this termination right and how it will effect my credit rating.

Hiya and welcome to the CAG .

If the contract document says "you have the right to end the agreement as long as you have paid half of the total amount payable and have taken reasonable care of the goods" this is exactly what it means.

No one can change the terms and conditions of a signed contract without the agreement of both parties to that agreement.

when you write to them terminating the agreement enclose a copy of the contract with the relevant section highlighted just to confirm what you say in your letter

pete

So long as you have paid up to the figure quoted on "Termination your rights", with no arrears and hand the car back in a reasonable condition you can end your agreement with them.

Just remember that the account will be terminated on the date THEY receive your request so may be worth sending it Recorded delievery and a week before your next installment falls due. As if they receive it after this date you will be lumbered with that instalment.

And an advance warning, BCT are reknowned for trying to charge 'Remedial work' so providing that the car is no worse than fair wear and tear they cannot legally enforce this amount as the Consumer Credit Act does not provide for this.

In Regards to your question will there be an adverse effect on your credit file, it will show as a VT next to this account which may put lenders off in the future as inverably the lender will take a hit on VTs.

To Terminate your agreement, write to them advising them your are excersing your right under section 100 of the Consumer Credit Act 1994.

Make sure they send your a VT pack and not a Voulentry Surrender form, these are two seperate documents and if you sign 'VS' you give them the right to the car to sell at auction and leave you to pay the shortfall.


Regards,

101

Same situation but with some differences - I purchased a car and from day one it caused no end of problems - firstly the car was sold to me and I drove away and later found out that it did not have a valid MOT ? can you purchase a car on hp without a MOT with regards to the vehical being in a safe standard for purpose? also had a great number of faults and run ins with dealer (fuel pump splashing fuel all over the engine / no mot / turbo blowing up / springs / bolts missing from the head and now it seems that the rings have gone on the engine....) ... any advice please..... oh had the car for 3 1/2 yrs on a 5 yr hp (needed a car asap at the time)