Advantage Finance VT

[flirble]

Hi

 

I'm looking to VT my car currently on an HP agreement with Advantage Finance

and I want to make sure I'm on solid ground as I think I'm only £400 away from hitting the magic 50% payment number.

 

 

So could some kind soul(s) chip and confirm my thinking?

 

I bought a car at 9750,

paid 2250 deposit with remaining 7500 being funded by advantage finance,

 

 

on my agreement it states total amount payable is 15425.28

which is made up

of the purchase price of 9750

+ interest and charges of 5675.28

 

The 50% barrier is stated as 7712.64

 

 

now by my reckoning I have currently paid 5155.84 in payments plus the 2250 deposit that was paid

(it was a part-ex but that doesn't materially matter I don't think)

takes me to 7405.84

 

 

so if I pay an additional 306.80 I'm home and dry with nothing more to pay.

 

Am I right?

 

Thanks in advance

[dx100uk]

simply do the VT

f you have 'something' to pay

you will be advised of such.

 

 

..............

 

 

 

 

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.

.

yo need to specifically nail them down that this is a VT and NOT a VS [volutary surrender].

dont get caught out!!

 

 

 

 

.................

 

 

example letter

 

 

Send them the following letter,

they MUST action your request,

you should endeavour to be present at the vehicle inspection---

.

VOLUNTARY TERMINATION OF AGREEMENT UNDER S99/100 CCA 1974

.

Account No: (xxxxxxx)

.

Dear Sir,

I am writing to notify you that I am exercising my right to terminate the above Agreement

under Section 99 of the consumer credit act1974.

.

You will understand that the aforementioned section permits the debtor to terminate the agreement

at any time before the last payment is due.

.

There is no restriction regarding the exercising this statutory right,

particularly none in respect of any perceived arrears or monies due on termination

.

I understand that I shall be liable to you for the amount calculated under the formula in Section 100

of the Consumer Credit Act 1974.

.

**As I have/have not paid more than the amount calculated under the formula in Section 100 the amount due is £XXXX/zero.

.

The above agreement will be terminated 14 days from the date of this notice.

.

Please send me details of how the vehicle can be returned to you.

.

You will be aware that statute prevents you from levying a charge for the recovery of this vehicle;

guidelines also state that if you require me to deliver this vehicle

it must be no more than a short (reasonable distance) from my registered address.

.

Please confirm receipt of this request in writing within 7 days of receipt.

.

-Yours etc...

..

 

 

 

 

...................

 

 

watch advantage's EVERY MOVE and read EVERY LETTER with a VERY large magnifying glass.

they pull every trick in the book. DO NOT CONVERSE on the PHONE

 

 

take extensive photos of the car inside and out

and underneath and in the engine compartment ALWAYS.

 

 

dx

[flirble]

Hi,

 

Thanks for the advice,

 

 

my initial query was mainly to sanity check my own thinking,

my understanding is that if I VT and am at the 50% barrier then there is no real affect to my credit file as it's not a default but a VT

and right executed under CCA1974 which should result in the account showing as satisfied rather than defaulted.

 

I have the £300 odd that I think I need to reach the 50% barrier and wanted someone to sanity check my sums and reasoning,

I am not looking to VT and then get to pay off any outstanding liability over time as I don't want the damage to my credit file

I simply to be rid of the heaping steaming mess of a car I thought I was saddled with but now have an opportunity to return with no impact to myself.

 

It is in great condition, has had a major repair and now I simply have no faith in the vehicle and no confidence in it.

I'm looking to VT to be rid of it and walk away and put the whole sorry mess behind me.

I know advantage will pull every trick in the book

- I already have them with the Financial Ombudsman on a complaint I've made so I know what they're like....

 

I think my numbers are sound and I've been through the total payable and the sums on their own form

so I think I'm good just wanted someone to agree with me

or not that my understanding was correct

and my assumptions seemed about right.

 

Cheers

[dx100uk]

I think the old rouge would like to see the agreement to be sure

 

 

scan it up

 

 

HOW TO UPLOAD DOCUMENTS / IMAGES ON CAG IMMEDIATELY YOU DO NOT NEED 10 POSTS

.

IMPORTANT To protect your IDENTITY and ensure you remain ANONYMOUS on CAG

YOU MUST ensure that you REMOVE all Personal Information including Barcodes, Names, Addresses etc

.

ENSURE: To leave all Monetary Figures and Dates.

.

DO NOT USE A BIRO, PEN, SEE THRU TAPE OR LABELS TO EDIT THE INFORMATION

.

1. SCAN YOUR DOCUMENT

.

- Set your default scan page size to A4 less than 300 DPI (150 will do)

- Scan the required letters/agreements/sheets - as a picture (jpg) file

.

- Don't forget you can use a mobile phone or a digital camera too!!

.

- If you have multiple scans/pictures please put these into a WORD DOC first ensuring you have removed all Personal Information before converting to PDF.

if you dont have MSOFFICE, use openoffice its free and has a PDF converter.

- IPHONE ONLY: Take a picture and Convert to PDF via an APP

.

2. HOW TO EDIT (Remove Personal Information)

.

- Do this using MSPAINT.EXE or any Photo Editing program and ensure to save the document.

PLEASE TRY AND REFRAIN FROM POSTING FILES OF +1Mb in size

a single sheet of a4 should be about 50kb.

.

.

3. HOW TO CONVERT YOUR DOCUMENT TO PDF

.

- If you have OFFICE installed this has an installable PRINT to PDF option so use this and save as PDF.

- If you have PDF as an installed driver use this program and save as PDF.

.

OR Go to one of the many free online pdf converter websites:

.

- http://freejpgtopdf.com/

- http://www.convert-jpg-to-pdf.net/

- http://www.freepdfconvert.com/

- http://www.pdfmerge.com/

- http://www.primopdf.com/

.

PLEASE REMEMBER: It would be better to upload a Multi-page PDF rather than multiple Single PDFs.

.

4. BEFORE UPLOADING YOUR DOCUMENT ON CAG

.

- Logically Name your PDF File so Users know what it is. DO NOT NAME YOUR FILE USING BANK NAMES OR CAG IN THE TITLE

.

- For Example: Default Notice DDicon-MM-YYYY.

.

IMPORTANT To protect your IDENTITY and ensure you remain ANONYMOUS on CAG please ensure that you do a final check that all Personal Information including Barcodes, Names, Addresses etc. are REMOVED before carrying out the NEXT STEP

.

5. HOW TO UPLOAD YOUR DOCUMENT ON CAG

.

- In your Thread/Post open a new msg box here.

- Click 'Go Advanced' below the msg box.

- Click 'Manage Attachments' below that box.

- Click the 'Add Files' button on the top right.

- Click 'Select Files', navigate to your file(s) on your PC.

- Click 'Upload Files'.

.

- You DON’T have to put a link to the attachment in the msg box just upload it ……… JOB DONE

- You can click on your links to check them too!!

.

[theoldrouge]

without seeing the agreement, yes your figures are correct, providing no add on insurances are included

 

YOU MUST use the letter dx has provided to VT under s99/100. DO NOT SIGN any of their paperwork

as an alternative

 

seeing the agreement would be useful

[flirble]

hi,

 

I'm not at home right now but if I can dig the agreement out of my email and edit it up I'll post later...

 

There was an additional insurance AA Motor Protect Plus for 3yr at a cost of £545 added to the finance so that totals at £926.40 with the interest over 48 months, I'm guessing that I will be entitled to an interest rebate on this portion there is I recall a statement that the termination rights relate only to HP portion of the agreement and I'm still liable for the optional insurance.

 

Now from what I read of the agreement there is nothing stating that I must pay that amount if I terminate in full and implies that I could if I wanted continue to pay that loan in monthly installments as it's not technically related to to the HP and so they can't prevent me terminating that part, so in theory I can terminate the HP and continue to pay the optional insurance at £19.30 a month until it was paid off.

 

I must admit I'm befuzzled how an insurance/service/product that has a defined period of life eg: 3yrs can be paid for over a 48 month finance agreement seems a bit weird to me...

 

So in short yes there is an additional insurance but the sum is pretty tiny nothing big like a warranty or such. btw I'm 19months in to 48month agreement.

[dx100uk]

is there a sep sig for the rip off insurance?

[ps you should be reclaiming ALL of that

there is NO requirement under any HP rules that anything MUST be insured or warrantied}

[theoldrouge]

yes please post it up, the insurance was likely misold

 

as an example http://www.fca.org.uk/news/fca-proposals-to-tackle-issues-in-gap-insurance-market

[flirble]

Yes there is and it is titled SUBSIDIARY AGREEMENT FOR OPTIONAL INSURANCE and in the signature section there is a separate section for it and signature box for me to sign.

 

I think I'm going to have issues posting the agreement in full as I don't have a way to scan it in only the original raw PDF file.

 

The motor protect plus thingy from the AA was to cover:

 

MOT Failure repairs eg: if I fail MOT then it pays for MOT identified items

Tyres being damaged or needing replacement

Keys being damaged or lost

 

Thanks

[dx100uk]

easy

 

 

send it to me

email coming in a PM>

 

 

dx

[flirble]

done

[dx100uk]

agreement hidden here

[dx100uk]

only 3 views - sri attachment hidden for siteteam only

[theoldrouge]

figures ok, USE the letter as advised, do not sign any of their forms

attend the vehicle condition inspection, take dated photos as advised

your credit file should be marked settled, showing zero balance

 

That insurance, next to useless

obtain settlement figure and clear (to keep credit file in order)

then lodge formal complaint to reclaim

use the fca link provided as basis for complaint

[Peterbard]

Usually they mark your file as VT, but it does not have any implications for future credit, I had two of these on my file at one time and I still got a HP agreement for a third vehicle.

 

They undoubtedly will come after you for bodywork repairs under section 100 of the act once the vehicle as gone back, as said take plenty of pictures, generally after you respond saying you are not willing to pay, because the act only says the vehicle/goods must have been taken reasonable care of, they drop or modify their demands. It is a shot to nothing for them some people just pay up.

 

Whilst the advice not to sign any of their paperwork is sound, I have found that sometimes it will hold up proceedings, especially in the larger concerns where some jobs worth will insist on the paperwork being as per the manual. I would say definitely read it thoroughly, it is usually pretty innocuous, in any case you cannot sign away your statutory rights.

[flirble]

Thanks - I'm not sure if I'll have the funds to also clear the Motor Protect Plus agreement, but from what I read it's a subsidiary agreement that can have a life of it's own and paid separately if I terminate the HP portion as it has it's own signature separate to that of the main HP agreement (please tell me if I'm wrong)

 

Also I'm not sure how the fca link mentioned forms a basis for the motor protect plus to be reclaimed, am I purely claiming it was mis-sold because it is insurance tied to the hp or is there some other grounds as I don't see how the case against GAP and this kind of policy equate (and yes I admit I may well be being very stupid in not understanding this bit)

[Peterbard]

The finance for the insurance will be a subsidiary agreement,and as said will have no baring ton the VT.

 

You should have had a credit agreement and a terms and condition for the policy, it will depend on the details therein really as to what if anything you are liable for under these.

.

I would think the credit would have paid the policy premium in a lump sum on commencement of the hire of the vehicle. In which case you would need to contact the lender and get a settlement figure also

put a reclaim for the sum paid to the insurer for miss selling you should get statutory interest on the premium.

[Peterbard]

Sorry missed the last bit you can claim misseling as it was said to be a condition of the bargain, same as any other miss selling claim.

[theoldrouge]

Thanks - I'm not sure if I'll have the funds to also clear the Motor Protect Plus agreement, but from what I read it's a subsidiary agreement that can have a life of it's own and paid separately if I terminate the HP portion as it has it's own signature separate to that of the main HP agreement (please tell me if I'm wrong)

 

)

 

correct,merely trying to save you a little money

[flirble]

okie dokie, I'll definitely try to close out both as yes it will save some ££ for sure

[Peterbard]

Just a thought but uf there was misselling and there was a credit agreement which supplied the credit, ther may be a case for a section 75 claim against the loan creditor

[flirble]

So I got a message from Advantage Finance this morning (I emailed my VT notice rather than posted) and this is what they said:

 

Total to pay for HP: £231.90

Total to pay for Insurance: £71.91

Total to pay: £303.81 (woohoo!)

 

Also they have stated I must 'return' the vehicle or they can collect for a charge of £80,

 

 

I have emailed them back to say I am willing to return to a location within 30mins of my home address

and if there isn't one in that distance then I would expect them to collect the vehicle for no charge

as the statue states they cannot charge fees related to the VT.

 

Will see what they say

[dx100uk]

tell them to drop the insurance you are going to reclaim it as a mis-sale?

 

 

dx

[flirble]

I've been in touch with them over email all day and have arranged to 'drop-off' my vehicle tomorrow morning,

yes I'm getting this thing done fast, the problem is the drop-off location is just a drop-off no inspection will be done

and I don't know where or when that will be done but I'm pretty sure it won't be possible for me to attend.

 

My plan is to take as many photo's as a I can, time stamped by my phone but I'll also have a newspaper with me to get in each shot I hope.

I intend to take a photo of each body panel, interior incl. boot, the included spare wheel and tools, engine bay under the bonnet and each wheel too along with each pane of glass.

 

There is a small scratch on my passenger side door that was present when I purchased the car but otherwise it's clean

- also one small scratch is in my opinion fair wear and tear for a 5yr old car that's done 47k miles.

 

I'm hoping this will be enough to cover me in case they raise something.

They have asked me to complete V5 section 9 but their won't be a dealer signature when I send it off (does that matter?) and MOT certificate.

 

 

I had a major repair done to the engine last year, should I include the invoice for that work too?

they haven't asked for it but I'm wondering if I should....

 

Thanks

[dx100uk]

they should be refunding you that cost

it was their car!

 

 

dx