Long story short... got a car on finance through advantage finance. On the original HP agreement it says that after we had paid a sum of £5311.50, we could return the car and as long as we had paid this amount and taken reasonable care of the goods that we would have no more to pay...
Okay now we have paid nearly a grand more than this.... however got a letter today telling me they need another £2591.06 to bring the account up to half payment and settle the insurances.
The termination section says this :
You have a right to end this agreement. To do so, you should write to the person you make your payments to.. They will then be entitled too the return of the goods and to have the total amount payable under this agreement, that is £5311.50. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods you will not have to pay anymore.
Now we have paid £6300 something. ( I rang and checked)
the letter I got today says the following
With reference to you termination request, please ensure that you have read your contract carefully. In order to effect a voluntary termination on this account the following criteria need to be met.
in order for you to terminate the above agreement you will need to pay
1. the amount required to bring your account up to date = £0.00
2. AT least one half of the total amount payable as stated on your hire purchase Agreement, which includes payments already paid and any deposit you paid at the start of the agreement = £841.50
3. Any outstanding collection charges = £0.00
The amount required to terminate this agreement is £841.50 This figure is valid for 7 days.
Please be aware that the balance of any payment protection or other insurances taken out at the same time will remain paybale.
to settle these insurances and claim any rebate to which you are entitled you may also choose to pay the amount set out below. this will also ensure that you have no further liability under the insurance element of the contract.
The amount required to do this is £2,524.91
less rebate £785.35
In order to pay both the termination figure on the vehicle and settle any oustanding insurances the total amount due is £2591.06. You may elect not to settle the insurances now and pay these over the remainder of your agreement but this may result in you losing the rebate to which you are entitled.
In addition the goods must be returned to us. In order to obtain details of our nearest agent to you please contact our re marketing Department on.......................
then it goes on to lay out how the car needs to be.. ie good trim etc.
Can they demand this extra money.. as I sent my other car back a month ago and there was none of this to pay...