I have a car I've paid over half of and wish to return.

I emailed them Friday to a previous correspondence address, no reply, I called them yesterday morning and "no one was available right now in VT department" they gave me a direct email address, still no reply.

I want this returned by 20th as I'm going away, can I force them in to a speed up? What is reasonable notice?

also does mileage penalty apply to the halves rule?

The wording in my document says "You have the right to end this agreement. To do so, you should write to the person you made your payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £11891.97. If you have already paid as least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more."

That seems pretty clear to me there is no more to pay?

you need to send them the VT letter

id do that by royal mail not email.

moved you to the vehicle finance forum

have a look at a few VT threads here .

dx

Stolen from another thread. I've sent them this.

Dear Sir,

I am writing to notify you that I am exercising my right to terminate the above Agreement under Section 99 of the consumer credit act 1974. You will understand that the aforementioned section permits the debtor to terminate the agreement at any time before the last payment is due. There is no restriction regarding the exercising this statutory right, particularly none in respect of any perceived arrears or monies due on termination.

I understand that I shall be liable to you for the amount calculated under the formula in Section 100 of the consumer credit Act 1974. As I have paid more than the amount calculated under the formula in Section 100 the amount due is zero.

The above agreement will be terminated 14 days from the date of this notice.

Please send me details of how the vehicle can be returned to you.

You will be aware that statute prevents you from levying a charge for the recovery of this vehicle; guidelines also state that if you require me to deliver this vehicle it must be no more than a short, reasonable, distance from my registered address.

Please confirm receipt of this request in writing within seven days of receipt.

Yours sincerely,

Well done

Glad you found it

Wish all users were as good at self help

Dx

also does mileage penalty apply to the halves rule?

The wording in my document says "You have the right to end this agreement. To do so, you should write to the person you made your payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £11891.97. If you have already paid as least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more."

 

That seems pretty clear to me there is no more to pay?

anyone got an opinion on this? I heard somewhere that mileage penalty still applies

Section 99 of the Consumer Credit Act gives the debtor the right to terminate a hire purchase agreement,

simply by giving written notice of termination.

.

The right to terminate applies at any time before the final payment becomes due, unless the creditor has already terminated.

.

contrary to the line taken by many finance companies,

.

the debtor need not have paid half the total amount payable,

.

and nor do they have to pay any arrears,

.

before exercising the right to terminate.

.

Sections 99 and 100 set out the debtor's liability on voluntary termination. The sections are complex,

.

but their main effect can be summarised in brief as follows.

.

.If the sum of payments made and arrears before termination exceeds 50% of the total price,

than the debtor is only liable to pay the arrears.

.

Otherwise, the debtor is liable to pay half the total price, less any payments already made.

.

so the debtor can terminate at any time if he has reached the 50 % mark

.

the debtor can terminate at any time before the 50 % mark but would be liable for payments still to reach the 50 % mark,

.

does not matter if the account is in arrears at the time or request to do a voluntary termination.

.

you need to specifically nail them down that this is a VT and NOT a VS [volutary surrender].

dont get caught out!!

take extensive photos of the car inside and out

and underneath and in the engine compartment ALWAYS.

if they try and charge a repo fee or collection fee they cannot:

173 Contracting-out forbidden.

(1)A term contained in a regulated agreement or linked transaction, or in any other agreement relating to an actual or prospective regulated agreement or linked transaction, is void if, and to the extent that, it is inconsistent with a provision for the protection of the debtor or hirer or his relative or any surety contained in this Act or in any regulation made under this Act.

This term is covered by the above section of the CCA 1974 in that it breaches this:

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

In other words nothing can stop you voluntarily terminating.

The only charges you must pay are the ones contained in the legislation and itemised in section 101, the charge mentioned is levied after the agrement is terminated and is void in any case. All it means is that no one will collect the terminated car(their car), well that is ther problem it is no longer yours , your attachment to the car has been terminated.

.

although dependant on the way your agreement is written, they can charge excess mileage

.

this has been accepted at county courticon level, but afaik has not been tested in a higher court

..

..............example letter..ADAPT TO SUIT.............

.

You must vt under s99/100 cca1974. do not sign any of their forms, or agree to pay anything.

.

The car has just to be in reasonable condition for its age.

If you have paid in excess of 50%,

with no arrears there will be nothing to pay.

.

Send them the following letter,

they MUST action your request,

you should endeavour to be present at the vehicle inspection---

.

VOLUNTARY TERMINATION OF AGREEMENT UNDER S99/100 CCA 1974

.

Account No: (xxxxxxx)

.

Dear Sir,

I am writing to notify you that I am exercising my right to terminate the above Agreement

under Section 99 of the consumer credit act1974.

.

You will understand that the aforementioned section permits the debtor to terminate the agreement

at any time before the last payment is due.

.

There is no restriction regarding the exercising this statutory right,

particularly none in respect of any perceived arrears or monies due on termination

.

I understand that I shall be liable to you for the amount calculated under the formula in Section 100

of the Consumer Credit Act 1974.

.

**As I have/have not paid more than the amount calculated under the formula in Section 100 the amount due is £XXXX/zero.

.

The above agreement will be terminated 14 days from the date of this notice.

.

Please send me details of how the vehicle can be returned to you.

.

You will be aware that statute prevents you from levying a charge for the recovery of this vehicle;

guidelines also state that if you require me to deliver this vehicle

it must be no more than a short (reasonable distance) from my registered address.

.

Please confirm receipt of this request in writing within 7 days of receipt.

.

-Yours etc...

..

they are asking me to fill in a return slip.

This talks of excess mileage yet my contract states no further charges.

I want this returned and resolved before Friday next week when I go on holiday.

Any suggestions?

 

Thank you for your recent enquiry in relation to our voluntary termination process.

Nissan Finance would like to ensure that you have a clear understanding of this process and its implications.

 

 

As this is an important decision, we ask that you spend a few minutes reading the following information so you are fully informed and confident that you have made the right choice.

 

 

If you have any questions, then please do not hesitate to contact our End of Contract Department by calling 0330 3310 228* and selecting option 2.

 

What does this pack contain?

Pages 1 & 2 Letter and tear off slip providing essential information about your enquiry and a return slip for

you to complete.

 

Page 3 Extract from BVRLA advising you of the expected condition of the vehicle, if this is your final decision.

 

Page 4 Your provisional liability to Nissan Finance before we have inspected the vehicle.

 

Page 5 A useful list of do’s and don’ts for you to read and comply with.

 

Should any of these pages be missing, please contact us immediately on 0330 3310 228* and select option 2.

What are my rights to return the vehicle?

 

As your Agreement is regulated by the Consumer Credit Act (1974), you have the right to terminate the Agreement ahead of its natural end date.

 

What do I have to pay?

 

The Consumer Credit Act gives Nissan Finance the right to receive a pre-determined amount equal to half of the total amount payable.

All monthly payments that have fallen due must have been paid.

 

You may also incur charges in respect of any default or administration charges that have fallen due but you have not yet paid, damage to the vehicle or missing items (please see pages 4 and 5).

 

 

If you have an agreed mileage allowance on your contract you may be liable for excess mileage charges if you have exceeded your pro-rata

allowance.

 

We have provided all the financial information for your Agreement on the enclosed provisional liability quotation.

What else do I have to do?

 

If you decide to exercise your right to voluntary terminate the Agreement, you no longer have the right to retain possession of the vehicle.

You must arrange for the vehicle to be returned to us.

 

Are you aware of what other options are available?

 

You could settle your Agreement.

The amount to settle would be as follows:–

Balance Outstanding ** £ !Undefined Bookmark, ""

Plus any arrears £ 0.00

Less Amount of rebate*** £ 0.00

Settlement figure**** £ 0.00

 

 Or have you considered speaking with your local dealership and part exchanging your vehicle?

 Or maybe you could try to sell your vehicle to a third party and use the proceeds to settle the outstanding finance with Nissan Finance.

 

What happens next?

If you want to continue with the voluntary termination process, we recommend that you take independent advice.

You will remain liable for the monthly payments until we receive the completed return slip below and terminate the Agreement.

 

 

To exercise your right, we need you to fully complete and sign the attached return slip and return it to us either by post or by email to [email protected].

 

As we have mentioned above, if you decide to terminate the Agreement early, you have to return the vehicle to us.

We must make you aware that the vehicle remains your responsibility until it has been collected.

 

 

This can only take place after we receive the fully completed return slip.

Please be aware that once we have received the return slip, it may take up to two weeks to arrange either the collection of your vehicle.

 

Please feel free to contact us on 0330 3310 228* and select option 2 should you have any further queries regarding this process.

 

 

Alternatively, you can email us on [email protected] and we will respond to your email within 48 hours.

Yours sincerely

For and on behalf of

Nissan Finance

Return to:

End of Contract Department,

Return Slip for Agreement 22000xxxxx

Nissan Finance

Rivers Office Park

Denham Way

Maple Cross

Rickmansworth WD3 9YS

 

I am exercising my right to voluntary terminate the above Agreement.

I understand how any liability amount will be calculated and the process for returning the car has been fully explained to me.

I agree that I will settle any charges for collection of the vehicle (where this option has been ticked below), damage, missing items and/or excess mileage charges as invoiced by you.

 

The current mileage on the vehicle is –

(please complete this field – failure to complete this may result in the VT process being delayed)

 

Signature Date Mr Ben Coulthard – This must be signed by our customer Day time telephone number Alternative telephone number

 

B.V.R.L.A. - BRITISH VEHICLE RENTAL AND LEASING ASSOCIATION

(Extract from the B.V.R.L.A. Fair Wear & Tear guide.)

Founded in 1967, the BVRLA is the trade association of the rental and leasing industry in the UK.

What is Fair Wear and Tear?

 

Taking into account a vehicle’s age and mileage and covering overall condition, from the mechanics and the electrics through to the bodywork and the upholstery, fair wear and tear summarises the degree of deterioration judged to be reasonable when a vehicle is returned to the Finance Company.

Some amount of wear and tear damage may occur through normal, everyday use, which could be deemed acceptable if reflective of the vehicle’s age, mileage and overall condition.

 

Drivers not taking responsibility for the day-to-day care and maintenance of the vehicle are the main reasons vehicles suffer from unreasonable levels of fair wear and tear.

 

Regular maintenance and servicing should be carried out by a franchised dealer or approved servicing agent according to the manufacturer’s guidelines.

The vehicle instruction book, full service record and any other documents relating to vehicle equipment are the responsibility of the vehicle user and must be intact and available. All documents must be in the vehicle on its return to the Finance company – including any details of radio codes.

You will be responsible for the cost of all maintenance and repair which is not occasioned by fair wear and tear, which sums shall be payable immediately upon request.

 

The servicing agent should complete and stamp the servicing record after each service. In the event that the service book is unavailable at the time of collection, proof of servicing i.e. invoices, must be made available. You will be responsible for any missing or damaged ancillary items and servicing costs (for services not carried out in accordance with manufacturer requirements).

 

It must be returned with the spare wheel, tools, tyres, handbook and service record, master key, spare keys and any accessories that were originally supplied with it.

 

The Vehicle must be presented in a suitable condition for inspection i.e. cleaned.

Vehicle Return Check List - The following items should accompany the vehicle.

 Two sets of Ignition Keys and Remote Fobs

 Spare Wheel

 Maintenance Service History

 Tool Kit

 Vehicle Operation Manuals

 Accessories supplied with Vehicle

 MOT Certificate (if applicable)

 Removable Stereo Components

 Full V5c registration documents (Failure to provide this will result in a charge of £50.00)

 

Voluntary Termination Provisional Liability Quotation

For Agreement Number 22000xxxxx

Initial calculation of the "Termination: Your rights" figure as described in the Agreement

Total Amount Payable under the Agreement

Excluding any Option to Purchase fee £23,783.94

Half of the Total Amount Payable under the Agreement

Excluding any Option to Purchase fee £11,891.97

 

Your termination liability as at 13/10/2017 (excluding any payment protection)

Termination liability as described under your Agreement £ 11,891.97

 

Arrears £ 0.00

 

Add

Default and/or administration charges

£ 0.00

 

Add

Cost to repair any vehicle damage/missing items

£ *

Total £ 11,891.97

 

Amount already paid to Nissan Finance (excluding any payment protection)

Deposit

£ 3,250.00

 

Add Finance Facility Fee

£ 0.00

 

Add

Rentals**

£ 12,750.00

 

Add

Default and/or administration charges

£ 0.00

 

Total**

£ 16,000.00

11,891.97

16,000

0

-4,108.03

Your Provisional Voluntary Termination Liability is £0.00

 

Further charges that may be applicable in addition to the Voluntary Termination Liability:

 

Add

Cost to repair any vehicle damage/missing items

£

*

Add

Excess Mileage Charge

£

*

Provisional amount to be paid*

£

0.00

* This figure is subject to change. An inspection of the vehicle will need to be completed to attain the Final Liability Figure. This calculation is based on the Agreement not going into arrears. This calculation is based on your bankers clearing any recent payments. This Provisional Liability Quotation expires on the eve of your next rental.

** If your next rental is due within 3 days of the date of this letter and you pay by direct debit, this figure already assumes that this rental has been paid. If it is not paid, you will need to deduct this amount from the total amount paid to date.

Good Afternoon,

 

Thank you for your email and apologies for the delay in responding.

 

I can confirm your Agreement has been terminated and sent to our collection agency Manheim.

 

Should you wish to contact them directly, their telephone number is 0333 444 0236 and your details will be with them as of Tuesday.

 

Please see the attached forms for your information only.

 

Kind regards,

cross out what you don't like

dx

I called them, the collection agency have a backlog of about 3 weeks. Great. Might be leaving it with my MUM.

I recorded the call with VT Dept, Someone called Natalie told me I had nothing more to do other than talk to the Agency and arrange collection.

They seem to think it is definite that I have to pay mileage allowance penalty. Despite the wording in my contract of:

You have the right to end this agreement. To do so, you should write to the person you made your payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £11891.97. If you have already paid as least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more.

I guess the answer is in the question, does a VT count as an earlier ending of this agreement?

you do have to pay mileage it says so!!

but if the extra you've paid over the 50% figure then covers it you're home dry

I reckon I'm 3 payment over half way, £750, I'm about 39 months owned at 9k miles a year.

So my deal is about 29250 miles and it's about 34k on the clock. 10p a mile penalty.

I didn't know that rule, where did you get that info?

what 'rule/?

what 'rule/?

but if the extra you've paid over the 50% figure then covers it you're home dry

That.

well pers I think RCI would be rather greedy if they tried it on...

you've overpaid passed the VT point

ok you wont get that moneyback, and they probably quite rightly deserve it...but just looking at mitigation

I guess the over mileage is about £400

was it a straight agreement or are there PPI/GAP/Warranty payments loaded on at the start because you were told you had to take out XYZ useless crap?

A few county court judgements in favour of finance companies regarding excess mileage

But never been tested in Higher Court

Try and argue it

but imo not worth the hassle for 400

As dx says any add ons then mitigate

well pers I think RCI would be rather greedy if they tried it on...

you've overpaid passed the VT point

ok you wont get that moneyback, and they probably quite rightly deserve it...but just looking at mitigation

 

 

I guess the over mileage is about £400

 

 

was it a straight agreement or are there PPI/GAP/Warranty payments loaded on at the start because you were told you had to take out XYZ useless crap?

Gap is 5147 assuming pro rata of 29250 total to my 34397 actual, so £514.70

No PPI/GAP/Warranty BS.

PPI is pointless an I get full sick pay etc, GAP was a bad judgement call given the huge devaluation IMO, no warranty bill as it was new and covered by Nissan.

We'll see how this develops

some good bargaining chips there then.

dx