Termination of HP Agreement - Potential problems

[Rab_main]

Hi there, wonder if you could help me out

- apologies if in wrong section.

 

I am currently paying £336 for my car at the moment,

and thankfully as struggling my dad has managed to get me finance on a cheaper car for work etc which is great,

but I have to VT my current vehicle.

 

I have paid well over 50% of the agreement,

have a few worrying points before I send my letter

- as I am young my insurance is under my mothers name and to do this the log book shows my mum as the registered keeper,

I never sold her the car but had to be done as insurance was expense at the time.

 

Really worried this will affect me when I send my letter for VT.

 

Also lost a set of keys and a small bit of damage at the back of the car.

 

If I am charged for the above, would I be able to come to an agreement with the company for a payment plan so I don't default on any charges?

 

Really cannot afford to keep both cars.

Any help appreciated.

[dx100uk]

if you have paid more than 50% all they can do is ask you you to pay for the damage

but fair wear & tare is allowable.

 

so should cost you nothing more.

 

dont get caught out by them saying you owe the rest of the finance, you DONT.

 

as long as you have no arrears it should be ok

 

ins/ownership makes no odds

[Rab_main]

Brilliant, thanks very much - less worry then, just thought they would turn round and say you can't do this as you transferred ownership to someone else. Not missed a payment at all, may just try and fix damage before they take it away. Thanks once more.

[Rab_main]

Also forgot to mention - Car doesnt have full service history, warranty is expired though. Would this cause a problem?

[dx100uk]

nope

 

unless it is WRITTEN in the T&C's of the finance you will have no issue there either.

 

dx

[postggj]

arrears on a HP agreement have no detrament on doing a voluntary termination, you can do a voluntary termination at any time.

that is just something the likes of welcome made up

it just means you will be liable for any remaning payments up to the 50 % mark

 

but they will not tell you that

[dx100uk]

ah thanks

 

is that written anywhere too

 

dx

[postggj]

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

[dx100uk]

thankyou

 

dx