British Credit Trust loan on a car.. early settlement fee

[fewleh]

So I am new to this and have no idea on my rights or not.. I've tried reading lots of other threads, but it just confuses me more. I really hope someone can help shed some light on things, either good or bad. My girlfriend took a car out on a hire purchase agreement over 5 years. The car was for £6,995, and she will end up paying £17,200 (I know.. that hurts..). It ends in November this year.. and I just phoned up to try and end the agreement early, and pay the outstanding balance.. They have said the outstanding balance is £2,400 , and the early settlement figure is £2,350.. or something similar, so hardly saving a thing. She said this was because they remove the interest to decide the early settlement figure, and they 'front load' all their agreements so there was hardly any interest left. They must be laughing all the way to the bank on this one.. but is that really possible and legal for them to do? I was expecting to pay maybe £1,000 to pay it off.. or £1,500. But to save £50? Seems like a final kick in the teeth. Is there anything that can be done? Guess it's too late to return the car and cancel the agreement.. the car is probably only worth £2000 as it is. So frustrated.. are we doomed to pay this final £2,400 in full?

[fewleh]

She also has various charges levied over the 5 years for letters and so forth.. understand might be able to claim some of that back.. but only just started looking through the paperwork and trying to get my head around it all.

[theoldrouge]

nothing to stop you Voluntarily Terminating your agreement and returning the car under s99/100 cca1974, however you would lose the car and everything you have paid all these years, so seems a bit extreme. Were there any insurances or charges you can reclaim?

[fewleh]

Hmm, thanks... guess it's a bit late to be surrendering etc. Will take a look at if there's any charges.. but I don't think she had PPI with it. Is there a way of finding out all the charges that have been paid? I've got one letter here about a £25 letter charge, but I'm sure there would be more, she missed some payments over the years.. but here paperwork is a mess(!)

 

She did pay £454 GAP insurance.. do we have any way of clawing that back? Seems to only be in place for 36 months of the agreement?

Edited March 19, 2014 by fewleh

[Conniff]

If it is hire purchase then you can return it at any time after you have paid 50% and that will end the agreement with nothing further to pay.

There must be no arrears outstanding as these will become payable before termination can take place.

 

 

You just write to them to terminate the agreement as per consumer Credit Act 1974.

 

 

The car must be in reasonable condition and you do not have to pay for it's return.

Edited March 19, 2014 by Conniff

[havinastella]

Send the SAR to find any charges

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?387306-Full-Subject-Access-Request

[theoldrouge]

yes you can reclaim the GAP insurance and unfair charges, you need to send a sar with £10 to BCT to get all the info they hold on you, so you can calculate how much you can reclaim. Do you have a copy of the original agreement?