PCP & Termination (VWFS)

[ShaneG2009]

Hi

 

Long time since I posted on this board but here goes again...

 

I have a PCP agreement with Volkswagen Financial Services (VWFS) on a 2015 Audi A5 Black Edition.

When I signed up to the agreement I put my BMW M135i in as deposit (equivalent to £23,300)

which was against the A5 valued at £38,305.

I took £7,800 cash back out of the deal which left me with a 24 monthly payments of £250.67.

 

My first payment to VWFS (using the cash back) was a significant partial payment of £4,000

which left me with monthly payments of £63.80.

 

I then got into a bit of an argument with VWFS over adverse credit data they had lodged with Experian (and others)

which essentially said I'd missed payments.

 

 

The reality was I'd made manual payments whilst they were setting up Direct Debits

but their computer managed system had failed to pick this up.

This was a mistake VWFS acknowledge and rectified within a month or so.

 

 

As compensation they offered me an 'Audi R8 thrill experience' or £125 cash;

I refused this offer as I didn't think it matched the potentially serious harm they had done to my credit profile.

 

I took my compliant to the ombudsmen who as expected sided with them

and stated the offer of compensation was adequate.

 

 

Another toothless assessment by the ombudsman in my experience

(Vodafone being the other example I have personal experience of).

 

I have decided I am pretty sick of VWFS and I want to give the Audi back,

not because I cant afford the repayments because I can.

 

 

I just don't want to give them anymore of my money

and at the same time continue to suffer the depreciation of cars

within their brand because of the emissions scandal

 

 

(anyone who owns a VW / Audi will notice this is a FACT of life,

it is happening regardless of whether you have an effected engine or you have a newer, supposedly compliant engine).

 

My agreement states that I can terminate early if I have paid half the total amount payable.

I believe I am about £493.23 short of that

(VWFS owe me £200 as a gesture we agreed at the start plus £125 compensation)

so I am nearly at the half way point of the required payments.

 

My question really relates to the equity that I think I have in the vehicle.

 

 

To round things up I have put the equivalent of £19,878 into the car

and it's probably worth £28k depending on which dealer you look at.

 

Would I be entitled to the equity in the vehicle

or would I concede this if I voluntarily terminate the agreement?

 

 

The agreement is typically helpful / silent on this...

 

 

thoughts really would be appreciated.

 

 

Thanks

 

 

Shane

[renegadeimp]

get back to the FOS, and escalate it to an actual ombudsman. The first tier you appealed to was an adjudicator, and tbh theyre worthless.

 

Dont terminate ANYTHING until you get the ombudsmans judgement. WHile ther debt is with the ombudsman, VWFS shouldnt do anything as theres an ongoing dispute. A dispute THEY created.

[ShaneG2009]

get back to the FOS, and escalate it to an actual ombudsman. The first tier you appealed to was an adjudicator, and tbh theyre worthless.

 

 

Hi

 

 

I did escalate my complaint to an actual ombudsman and they said essentially word for word what the original FOS gimp said. My response to that was one of dismay and I told them I would not be accepting their findings.

 

 

PS forgot to mention in opening post GFV is not specifically noted in my agreement however there is a 'Final Payment' noted as being £19,417 which I believe is them saying that's the GFV in a somewhat roundabout way. Thinking about this a bit more I am wondering if I could not just sell the vehicle, pay off the GFV and keep whatever money I have left over....?

[dx100uk]

I would VT

it doesn't matter you have not reached the 50% mark

you make it upto that figure

 

 

make SURE you VT NOT VS

[dx100uk]

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.

.

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

dont get caught out!!

take extensive photos of the car inside and out

and underneath and in the engine compartment ALWAYS.

if they try and charge a repo fee or collection fee they cannot:

173 Contracting-out forbidden.

(1)A term contained in a regulated agreement or linked transaction, or in any other agreement relating to an actual or prospective regulated agreement or linked transaction, is void if, and to the extent that, it is inconsistent with a provision for the protection of the debtor or hirer or his relative or any surety contained in this Act or in any regulation made under this Act.

This term is covered by the above section of the CCA 1974 in that it breaches this:

99 Right to terminate hire-purchase etc. agreements.

(1)At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement

In other words nothing can stop you voluntarily terminating.

The only charges you must pay are the ones contained in the legislation and itemised in section 101, the charge mentioned is levied after the agrement is terminated and is void in any case. All it means is that no one will collect the terminated car(their car), well that is ther problem it is no longer yours , you attachment to the car ha been terminated.

.

.

.

..............example letter..ADAPT TO SUIT.............

.

You must vt under s99/100 cca1974. do not sign any of their forms, or agree to pay anything.

.

The car has just to be in reasonable condition for its age.

If you have paid in excess of 50%,

with no arrears there will be nothing to pay.

.

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...

..

[Peterbard]

The thing is that you will not get any of the equity in the vehicle back if you vt.

If you have paid one half of the total price on the agreement you can walk away owing nothing, as long as there are no damage or excess mileage liabilities due.

[ShaneG2009]

Thanks for the advice all, I have emailed VWFS and made them aware of the possibility of VT and i await their response.

 

 

I'm also looking at selling the car and just paying off the balloon with the proceeds. That way the equity i know is in the car is mine to keep.

[Peterbard]

 

 

I'm also looking at selling the car and just paying off the balloon with the proceeds. That way the equity i know is in the car is mine to keep.

 

The problem here is that the caris not yours to sell until after you have paid the balloon payment, i doubt very mush the creditor(owner) will authorise the.

[ShaneG2009]

Good point. I did also mention in the email about them confirming what equity was mine. The do buy back using their network of dealers.

[dx100uk]

do vt officially only via the correct method/letter in my post.

 

 

else you'll get fleeced