Hire Purchase - Voluntary Termination

[jamieleeuk]

Hi,

 

Just wondering if there's anything I can claim back from the following situation - I'm annoyed at this as this seems to be the catalyst for my current debt situation!

 

At the tender age of 17 & 18 (myself and partner respectively) we headed to Lookers Renault in Stockport, Manchester - where we purchased a Renault Clio on hire purchase - included in this was Gap Insurance but i'm not sure of what else was included in the final price of the loan agreement without digging round for it (or requesting it through Lookers).

We were very young and entered into a mortgage too to buy a house and so we were living to the last penny, when, jealousy got the better of some people in my area and the car kept getting windows smashed and aerials stolen. Insurance premiums went up so much that we just couldn't afford to pay for the car payments, insurance and mortgage payments and so the car had to go back by terminating the agreement.

 

In order for the car to be taken back by the firm, we had to pay a further £3,000 of the price which came about by way of loan and so the subsequent debts that followed.

 

Did I have to pay up to a certain amount before it became acceptable to terminate the agreement?

 

Thanks for any advice or help that you have. The agreement was originally from 2003 (from 53 reg) and was terminated in May 2005.

[postggj]

on the agreement you would have a part about termination

to do a voluntry termination and owe nothing a third needed to be paid off

[jamieleeuk]

Thank you for your reply - further to this ::

 

If the total price of loan including interest etc totalled £13,700 and we paid 26 month's worth of £146.50 (£3,809) - this being just a few hundred quid under a third, would they be within their rights to then charge a further £3,000 penalty?

 

Thanks

[postggj]

did you get any penalty charges

late payment etc

[jamieleeuk]

no, all payments made werre made on time. i'm defiinitely going to get all the facts on this before going further, as i'm positive we were told we had to pay half at least - rather than a third!.

[postggj]

the termination figure will be on your agreement

[Jamesx81x]

You can terminate an HP agreement at any point before you have made your last payment. This is your right under the CCA and law.

 

Although you will still have to pay the remaining balance up to the half way point or whatever your agreement states you do not have to reach halfway to terminate.

 

Many people think you do but you dont. The information can be found on the directgov website under HP agreements. A credible website too.

 

They are trying it on with you to make some of the money back they are going to lose by the agreement being terminated. Stand firm with them!

[postggj]

hi jamesx81

the norm is a third of the agreement to do a voluntry termination,

mind you, i have seen agreements that state half in the termination rights on the agreement

 

jamie

 

how was the agreement terminated

did you hand it back

was it a repo

did you request a vt

[Jamesx81x]

Yeah they seem to vary.

 

What i was getting at is that you can do a VT at any point before your last payment you legally dont have to wait unil you have paid a third/half.

 

Any remaining balance is just treat as a credit debt but as it is a legal VT they finance company have to treat it as that.

[jamieleeuk]

 

jamie

 

how was the agreement terminated

did you hand it back

was it a repo

did you request a vt

 

Sorry, bathing the dog...

 

Due to living to our last pennies, it was the best choice to get rid of the car and so we phoned to cancel the agreement. We arranged for someone to come and pick the car up on behalf of the company. It was not a repo, it was handed back. I will have to request the details from the car company as I can't find them on my files anywhere!!!

 

So different places vary then? Some a third and some half.

[postggj]

in this case you need to get all the info

thats agreement

computer records etc

you need to send the finance company a Subject Access Request

send this

you will find out whats goung on then

Edited January 13, 2009 by postggj
del

[postggj]

Dear Sir/Madam

 

 

ACCOUNT NUMBERS: xxxxxxxx and xxxxxxxx-x

 

Please send me the information which I am entitled to under section 7(1) of the Data Protection Act 1998 in relation to detailed occurrences relating to the account Numbers xxxxxxxx and xxxxxxxx-x

 

The following is by no means an exhaustive list but in the main this is what I require.

 

Please supply me with a complete list of transactions and charges relating to ALL accounting history with your organisation. Alternatively, a complete set of statements for that period will be acceptable.

 

Additionally, all records you hold on me relevant to these accounts, including but not limited to:

 

1. A transcript of all transactions, including charges, fees, interest, repayments and payments and both the original amount of the loan and any repayments made to the accounts.

 

2. Transcriptions of all telephone conversations recorded and any notes made in relation to telephone conversations by your company

 

3. Where there has been any event in my account history over this period which has required manual intervention by any person, I require disclosure of any indication or notes which have either caused or resulted in that manual intervention, or other evidence of that manual intervention in relation to my account. If you are unable to supply this data because there has been no such manual intervention, then please be so kind as to confirm this in your response

 

4. True copies of any notice of assignment and/or default notice or enforcement notices that you may have sent to me, with a copy of any proof of postage that you hold.

 

5. Documents relating to any insurance added to the account, including the insurance contract and terms and conditions, date it was added and deleted.

 

6. Details of any collection charge added to the account; specifically, the date it was levied, the amount of the charge, a detailed financial breakdown of how the charge was calculated, and what the charge covers.

 

7. Specific details of the fees/charges levied by any other agency in respect of these accounts and a detailed breakdown of said fees/charges and what each charge relates to and on what date said fees/charges were levied.

 

8. A genuine copy of any deed of assignment, or proof that you have a legal right to this money.

 

9. A genuine copy of any notice of fair use of my data as required by the Data Protection Act 1998

 

10. A list of third party agencies to whom you have disclosed my personal data and a summary of the nature of the information you have disclosed.

 

11. A copy of all account statements for the duration of the agreement.

 

12. Please would you also advise me of the logic involved in any automated decisions taken by you about me pursuant to section 7(1) (d) of the Data Protection Act 1998.

 

13. A True copy of the consumer credit agreement section 77-79 of the Consumer Credit Act of 1974.

 

Any Other information relating to these accounts

 

I enclose the statutory maximum fee of £10. You have 40 days in which to comply. Furthermore, if I discover that you have levied disproportionate penalties against me, then I shall be reclaiming them, and also reclaiming the enclosed £10 Data Protection Act subject access request fee.

 

If there is specific information which you require in order to satisfy yourself as to my identity, please let me know by return. However, please note that the above address is the one which you normally use to communicate my private business to me and which you have hitherto found to be acceptable.

 

 

Yours faithfully

BLAH

 

Print dont sign send by AT LEAST recorded delivery.

[ReasonableRon]

So different places vary then? Some a third and some half.

 

I don't know where this 'third' info has come from - it is wrong.

 

I order to VT a Hire Purchase agreement the law states that half the total amount payable needs to be paid.

[postggj]

hi reasonableron

most of the main dealer finance agreements have half on them

 

the micky mouse finance co, like ucan, welcome, etc have this on the agreements

 

 

"IF YOU HAVE PAID AT LEAST ONE THIRD OF THE TOTAL AMOUNT PAYABLE ETC - THE CREDITOR MAY NOT TAKE BACK ETC UNLESS HE GETS A COURT ORDER"(IN SCOTLAND HE MAY NEED TO GET A COURT ORDER AT ANY TIME)

AND - IF HE DOES TAKE THEM BACK WITHOUT YOUR CONSENT - YOU HAVE THE RIGHT TO GET BACK ALLL THE MONEY YOU HAVE PAID .

 

i think with your help, this matter needs to be cleared up

[ReasonableRon]

hi reasonableron

most of the main dealer finance agreements have half on them

 

the micky mouse finance co, like ucan, welcome, etc have this on the agreements

 

 

"IF YOU HAVE PAID AT LEAST ONE THIRD OF THE TOTAL AMOUNT PAYABLE ETC - THE CREDITOR MAY NOT TAKE BACK ETC UNLESS HE GETS A COURT ORDER"(IN SCOTLAND HE MAY NEED TO GET A COURT ORDER AT ANY TIME)

AND - IF HE DOES TAKE THEM BACK WITHOUT YOUR CONSENT - YOU HAVE THE RIGHT TO GET BACK ALLL THE MONEY YOU HAVE PAID .

 

i think with your help, this matter needs to be cleared up

You are quoting from the Repossession: Your Rights section of the form, not the Termination: Your Rights section.

 

This is statutory wording which is the same to all HP agreements, mickey mouse company or not.

[postggj]

stand corrected

 

many thanks

[ReasonableRon]

stand corrected

 

many thanks

No problem

[tiaposy]

You might want to check whether you PPI on the agreement - this could be the £3k you had to pay. When I VT'd my car, they tried to get me to pay the remaining PPI. Luckily I had never used the PPI, so I just cancelled the policy & returned the car.

[jamieleeuk]

Many thanks for your help, and for the template letter.

 

Will keep you posted.

[robuck]

A company cant repo a vehicle without the customers consent if they have paid over a third of the total balance, (unless it is unregulated or it has a Bill Of Sale attached - whereby you sign all rights to the vehicle away when you initially sign)

 

You can however Voluntary Surrendor the car without the need for a court order.... you are still liable for the balance though..

 

unlike a VT which can at any time be requested by the customer.