Details:

Finance Company: Raphael Finance

Product: mini cooper convertible 56 plate 74k miles

Term: 5yrs

Repayments: £133.71pm

APR: 19.9%

Start date: 11th March 2018

Settlement figure before June 2018: £4068

Settlement figure after May 2018: £5950

Hello Everyone, I am new to this group and have a car finance problem which I would appreciate help with.

Briefly the costs of running this car are beyond my capabilities.

I am locked into the repayments and not allowed to sell the car, yet I must get to work.

I have been offered just £1500 on part-exchange by the garage I bought the car from.

I have tried to take out a bridging loan from my bank (natwest). I am young and have not built up my credit rating enough to get a loan, and have no assets to gtee. any loans.

I am finding myself in a very stressful situation whereby I can neither afford the car and cannot get rid of it without being ripped of by unsecured loan sharks who want 40%APR.

Please help ♥♥

have you considered Voluntary Termination?

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.

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

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contrary to the line taken by many finance companies,

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

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and nor do they have to pay any arrears,

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before exercising the right to terminate.

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

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

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.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.

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

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

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

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

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

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

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

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

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

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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.

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Send them the following letter,

they MUST action your request,

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

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VOLUNTARY TERMINATION OF AGREEMENT UNDER S99/100 CCA 1974

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Account No: (xxxxxxx)

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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.

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

at any time before the last payment is due.

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There is no restriction regarding the exercising this statutory right,

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

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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.

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

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

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

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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.

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

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-Yours etc...

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