British Crdit Trust Charges and Fees & random APR increase

[tomtom013]

Hi all,

 

I am seeking some advice about my rights regarding an hire purchase agreement with BCT. I have an HP agreement with BCT which began 01/08/07 and will end on 30/08/2012. I have never missed a payment but forsee financial problems on the horizon.

 

My question is this; If I was to voluntarily surrender the vehicle and BCT sold the vehicle would I then be liable for the oustanding balance. Any advice on this matter, regarding HP law, would be gratley appreciated.

[tomtom013]

okay an update, I am now aware of something called termination under the half rule. Which allows you terminate with no further payments forthcoming if you have paid at least 50% of the total payable amount. In my case this is £12.175 and I have made 39 x £199.00 = £7761 in payments. I could therfore invoke this rule. Does anyone have or know of any template to send to BCT invoking the half rule and if anyone has any experience in actually using the half rule themseves.

[postggj]

you just need to send a letter to bct by recorded delivery giving details stating you wish to do a voluntry termination on the vehicle

[Tingy]

Check with them you are entitled to do it - if possible get a statement of account. I was advised to do this a few years back and took the company at their word, only to find they auctioned the vehicle then have since pursued me for the rest of the balance.

 

If you are in the position great, and well done for dealing with it before it becomes a problem. What I'm really saying is just be very careful - I wouldn't like to see you go through what I've been through.

[FightToTheEnd]

also make sure you do a voluntary termination and they don't try and trick you into a voluntary surrender which is quite different!!

[Tingy]

FTTE - I bet a Voluntary Surrender is what they conned me into - wolld that make sense given what I've posted?

[Surfer01]

Get a settlement figure from them. If the settlement figure is for instance £3000 but the car is worth £5000 if sold on the open market, ask their permission to sell it agreeing to be liable for the outstanding balance. Sell the car and pocket the difference after paying the balance to the HP company. I have done this before and have not encoutered any problems.

Obviously if you owe £5000 and the car is only worth £3000 then better to hand it back. Don't forget that a settlement amount will be a lot less than if you took all the outstanding payments as a lump sum added up.

[FightToTheEnd]

Very likely Tingy - do you now have any paperwork of what you told them you were doing, ie, generally you would tell them (not ask) that you were invoking the voluntary termination clause of your agreement.

 

To the OP, it is also important to check how the agrement is headed and is it a Hire Purchase Agreement or a Fixed Sum Loan agreement, as the latter means it's just a loan and you own the car outright already, though you would have no right to terminate.

[Tingy]

FTTE - starting my own thread in fairness to OP here!

[tomtom013]

Hi all,

 

Thanks for the info guys very helpful. I know for fact that I have paid more than half the total HP agreement which is fees + APR + credit= £12,175.00 and I have paid nearly £7500.

 

Therefore I am going to send them a letter, headed Termination of agreement under the half rule. I will post it on here soon.

[tomtom013]

Update:

 

Surfer01; I recently requested a settlement figure which was about £4K with the thought of selling it on but I am very confident that It would not reach that sum.

 

FightToTheEnd; It is definately an HP agreement with 1/3, 1/2, 3/4 and full payment sums oultlined and thanks for the info outling differences between Voluntary Termination & Voluntary Surrender.

 

Below is the letter I concocted using posted info on google. I intend to send to BCT recorded delivery, any ideas/advice on editing or inclusions apprecaited.

 

TERMINATION OF AGREEMENT UNDER THE HALF RULE

Dear British Credit Trust

Agreement Number:

Car Make & Model:

VRN:

I wish to terminate the above agreement under the half rule by exercising my rights under Section 63 of the Consumer Credit Act.

To initiate this process could you please send me details of how the vehicle can be returned to British Credit Trust.

Please confirm receipt of this request by telephone / email or by post to me on ( / ).

I look forward to hearing from you.

Yours faithfully

[Tingy]

Update:

 

Surfer01; I recently requested a settlement figure which was about £4K with the thought of selling it on but I am very confident that It would not reach that sum.

 

FightToTheEnd; It is definately an HP agreement with 1/3, 1/2, 3/4 and full payment sums oultlined and thanks for the info outling differences between Voluntary Termination & Voluntary Surrender.

 

Below is the letter I concocted using posted info on google. I intend to send to BCT recorded delivery, any ideas/advice on editing or inclusions apprecaited.

 

TERMINATION OF AGREEMENT UNDER THE HALF RULE

Dear British Credit Trust

Agreement Number:

Car Make & Model:

VRN:

I wish to terminate the above agreement under the half rule by exercising my rights under Section 63 of the Consumer Credit Act.

To initiate this process could you please send me details of how the vehicle can be returned to British Credit Trust.

Please confirm receipt of this request by telephone / email or by post to me on ( / ).

I look forward to hearing from you.

Yours faithfully

 

 

Yep, take out let you know by phone - you want it in writing!

[tomtom013]

Hi all,

 

BCT have finally replied to my Voluntary Termination using the half rule. In a nut shell they have aknowledged my request but state that I have not yet paid half the total oustanding liability and the oustanding balance is £224.00. This is garbage as I have paid well over half the amount. In fact they state on the VT acknowledgement letter in the top right hand corner, Oustanding Liabilty £4,722.00. Given that the total liabilty is just over £12,000.00 even someone like me can work out that half of 12K os 6K. I have actually paid about £7.5K.

 

I am pretty sure that the £224.00 outstanding balance is my December payment that I missed and a penalty charge on top. My question is this? Can they lawfully refuse to take the car back under the half rule, when the debitor has paid at least half but missed there last payment.

 

many thanks -

[Surfer01]

On the HP agreement there should be a figure and thsi is generally about 60%. I am not sure but the 50% could be made up from the totally outstanding balance which excludes the deposit paid.

[just_jue]

Hi, I have just VT'd a car through Welcome finance. The 50% up have paid includes the deposit but did you take out PPI, Mechanical Insurance etc? as this will make what you have paid off the car less than what you have worked out.

The payments have to up to date for them to accept your VT request.

 

The finance companies don't like doing this as they don't make as much money but if you want to do it you must keep on at them.

 

They may get an independent assessor to check over the car and try and sting you for repairs (ie paint chips or dents), but I would argue that they are just normal wear and tear for a car of this age.

 

I Vt'd my car in August this year and they collected early September and that was the last I have heard from them.

 

You might find that BCT will say it will affect your credit rating but this is nonsense as you are entitled to VT all they should do is say that the agreement is settled and via VT.

 

 

Hope everything goes fine for you

 

JJ

[just_jue]

Another thing is is BCT may try and charge you a collection fee which they are not allowed to do, I found this on the web via the Consumer Direct Web site:

 

'You can terminate an HP agreement and return the goods at any time by writing to the lender, as long as you bring your total payments up to half of the total amount payable under the agreement (the exact amount will be stated in a box on the front of your contract). But you will also have to pay off any credit you took out to pay for insurance. If you have already paid half, you only have to pay for any missed payments or damage to the goods. But if you have already paid more than this amount, you will not get a refund of the difference. You should not be charged to return the goods. If under the terms of your contract you must take the goods back, this should only be to premises within a reasonable distance of your home.

 

Tingy I notice you had trouble with BCT, I have had trouble with them in the past and when I SAR them I found they had paid a broker £1500 which was not disclosed to me so at the moment I am fighting them and the broker for non disclosure.

 

Hope this helps

 

JJ

[tomtom013]

Hi there,

 

thanks for the info.

 

To be clear the total amount payable is £12,175.00 and to date I have paid £7,478.00. So I have paid £1,393.50 more than the half mark. I did not take out PPI insurance (unless they have signed me up without my knowledge or consent) but did take GAP insurance which is bascially covered by the first installment of £199.00. So to be honest I don't see how they can ask for more money other than for last months payment which I did not meet.

[tomtom013]

Update:

 

Just had a phone call with a pleasant man from BCT and he totally agreed that I have met the half point and immediately placed Voluntary termination (VT) on my credit file. All I have to do is wait for the BCT guy to arrange collection and that should be it hopefully:sad:

[tomtom013]

Hi all,

 

update:

 

Well I am still waiting for someone from BCT to ring me to arrange collection of the car. During my phone call on the 5th a guy from BCT accpeted my request for a VT and said that this would be placed as VT on my credit file immediatley. He then said that someone from BCT would ring within 5 days to arrange collection from my premises were it would be checked over before being removed. Does anyone have experience with BCT and how long they take to process a VT. Or should i give more time -

[just_jue]

I haven't had any dealings with a vt with BCT but it would be a good idea to video the meeting when the car is collected so they can't later say there is damage, they may try and say that scratches and small dents need repairing but I would argue that a car of this age will have marks due to normal wear and tear.

 

My VT was all done and dusted in about 2 weeks, which after reading some other people's dealing with finance companies was quite quick.

[tomtom013]

Okay thanks for the advice,

 

I will give BCT a ring on Monday just to remind them.

[tomtom013]

Car was picked up from my house by an auction firm this morning. It was loaded onto HGV that carries multiple cars, I bet it got half the street talking LOL

[ninjainthenight]

all you have to do is send a written request and ask to voluntarily terminate the vehicle. if the vehicle is in good condition for its age and mileage and provided you are at the 50% mark there will be no further payment. Please please please please trust me when i say, take photos of your car and preferebly a video film of the outside and inside whilst the inspector is there checking it over. if you only tale one pice of advice in 2011 choose that pice right there!!!

 

and dont worry, for all BCTs faults they will not try and trick you into a voluntary surrcnder .. i know ;-)

[gweboy]

Did you manage to hand your back ok? I'm thinking of doing the same.

[tomtom013]

Hi there,

 

Yep, sorry I should have updated. The guys from BCT have been very honest and up-front with me. In brief, I told BCT that I wanted them to take the car back or VT the agreement under half rule. They said okay and arranged for someone to pick the car up from my house, which they did within 2 weeks. Upon pick-up the guy from the auction house did a quick inspection of the car and off he went with my car to auction. I had to pay nothing as the car was in decent nick for it's age. BCT have since confirmed I have nothing to pay and the matter is closed.

 

Hopes this helps

 

All the best

TT