Finance advice

[labrat]

Morning all

 

The wife has had a C4 on 48 month finance for 24 months now

 

the issue is shes looking at upgrading to a larger car as we are looking at trading our old trailer tent in towards a caravan

and because we need the extra space for the kids

 

shes just been given a settlement for whiplash that is just about enough to clear the finance off and allow us to trade the car in

. but the value of the car is less that the settlement amount

 

anyone got any advice?

 

the way i see it i was wondering about a few options

 

1) ring the finance company and hand back the car, then use the money as deposit on the new one\

2) ring the finance company and pay the rest back then hope for a decent trade in value

3) ring the finance company and ask to exchange? the finance for the new car and hand vehicle back

 

and for those diehards on the forum please feel free to exchange ring for write

[renegadeimp]

Could always VT if you're 50% and above in repayments. That way you won't owe the company a penny and can use the settlement figure as full deposit.

 

As long as you're not in arrears and you've paid 50%, you vt and owe nothing

[dx100uk]

yes VT ONLY!!

you DONT have to be over the 50% either

just take LOADS of photos in under out

as the company WILL try and fleece you on wear'n'tear.

 

here is how to vt properly

 

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...

..

[labrat]

well the wife rang them today (mistake i know)

 

they claimed she couldn't hand it back without being liable for the rest

- and apparently got very angry when she pointed out that theres a section in her terms and conditions

that says she can hand it back with no further costs after she paid £2018 which she is £80 off

 

busy writing email complete with picture of terms

[dx100uk]

well they will say that

as they are not obliged to tell you what VT is

as apposed to VS

 

 

get that VT letter running to them.

 

 

dx

[renegadeimp]

AS dx said. Get the letter off. They cannot refuse it.

[labrat]

well just had the call from the finance company

 

they have FINALLY accepted that we can hand it back

 

however they are now refering us to setion 10 of their terms and conditions which states that we have to return the goods at OUR cost, they have said either take it to bolton (2 hour drive) or pay 155 for them to collect it

 

im fairly sure thats wrong but they went a little mouthy at me when i mentioned it, i pointed out it was their property now we terminated anyway and they said no keep insuring it - the insurance lapses at 1pm today when its swapped to the new car, is it wise to get temperary cover for a few days?

[dx100uk]

doesn't matter what their stupid T&C says

if anything.

 

you ARE going for VT

so under the rules..

 

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.

[labrat]

i phoned today to hand back my car under the the "termination your rights" section of your terms and conditions which you are aware is covered by the consumer credit act

 

at this point you advised me that i would either have to return the car to bolton or southampton both of which are over two hours drive away or to pay 150 pounds to have it collected

 

i need to point out that under the consumer credit act that i only have to return the car to somewhere that is reasonable on the grounds of cost and distance. any terms and conditions contained in your agreement cannot overwrite my legal rights and any attempts to do so would be in breach of the consumer protection from unfair trading regulations

 

i need you to either provide a drop off point within a reasonable distance or to arrange collection of the car, any attempt to charge any amount for this either from myself or my guarantor would be reclaimed via the small claims court

 

any further delays in dealing with this complaint may be followed with a complaint to the financial conduct authority

[colin11]

well just had the call from the finance company

 

they have FINALLY accepted that we can hand it back

 

however they are now refering us to setion 10 of their terms and conditions which states that we have to return the goods at OUR cost, they have said either take it to bolton (2 hour drive) or pay 155 for them to collect it

 

im fairly sure thats wrong but they went a little mouthy at me when i mentioned it, i pointed out it was their property now we terminated anyway and they said no keep insuring it - the insurance lapses at 1pm today when its swapped to the new car, is it wise to get temperary cover for a few days?

 

 

Check with your insurance company, I bought a new car last week, and Hastings told me my old car was still covered for 7 days after the changeover to the new car

[labrat]

got confirmation today that their solicitors

agreed that the request to return distance was unreasonable

and they have provided one much closer

 

they want her to sign this

 

I wish to exercise my right under the Hire Purchase agreement detailed above, to

 

voluntarily return the vehicle to you.

 

 

At point of collection or drop off I will supply the

 

following:

 

• Registration Document

• Valid M.O.T certificate Valid Until:______________

• Service History in accordance with manufacturer recommendations

• Payment of Arrears (if applicable)

• Payment of the balance of one half of the total amount payable as per the Hire

Purchase Agreement.- £190.94 paid on 25th June 2016

 

I am not aware of any defects with the vehicle that I have not disclosed to you in writing.

 

I understand that, in accordance with my right to terminate and the terms of the agreement,

the vehicle will be accepted in full and final settlement of my account.

 

 

I also understand this is subject to an independent condition inspection

and validation of the supporting vehicle documentation.

 

Full settlement of the account or, if applicable, any remaining account shortfall liability,

will be confirmed to me in writing following the independent vehicle inspection.

 

----

 

think i would be ok to edit some sections of this?

 

main reasons are as follows

- i want to change the service history one,

it only had a part history when brought with no services done since 2013,

 

 

i HAVE changed all the filters (oil, air, cabin) + done oil change

& have also done the work needed for it to pass its last MOT (drop links + brakes)

however i also do my own work on cars

 

- i also want to change the not aware of any defects to

"i am unaware of any mechanical defects that were not already present when the vehicle was purchased

- these were: loose ash tray, missing glove box latch, general bodywork scratching in line with age of car"

 

main reason is

i don't want them coming back on those,

they were present at the time of purchase

but as it was her first car and someone had done basic repairs on them

(ash tray glued in - i assume that as the diagnostic port is under it someone broke it in the past to get to it,

glovebox someones fitted one of those magnetic wardrobe catch to it.

 

 

scratches are mostly limited to couple of dinks in the bumper and a minor scratch on one wing)

 

 

we were willing to live with the flaws

[dx100uk]

and as my post suggests ..

take photos of everything

in/out/under/engine..etc etc.

 

 

they will try it on. [wear.n.tear

 

 

as for the first line

i'd change it too...

 

 

I wish to exercise my rights under section s99/100 of the CCA 1974 concerning Hire Purchase agreements and

voluntarily terminate and return the vehicle to you.

 

 

 

oh and go read post 3 AGAIN fully

 

 

you DO NOT SIGN ANY OF THEIR PAPERWORK.

 

 

dx

[labrat]

Well told them twice when we were taking the car to the auction house they told us to

 

Turned up on the date specified and auction house knew nothing about it. Left the car with them as they said they would store it and contact the finance

 

Got a call from them yesterday to say they couldn't contact finance

 

We have told the finance that it was left there as arranged

 

How long should we give them to sort this out

[renegadeimp]

Long as it takes. The car isnt your problem anymore.

[labrat]

had bit from dvla confirming we no longer own the car

 

still nothing from the company "sigh"

[obiter dictum]

You checked your credit file that the Agreement is now settled and closed??

[labrat]

Nah just emailed them

 

After they said they don't send confirmation I badgered them

 

We now have a letter confirming the car has been accepted in full and final settlement

[martin2006]

Check yout credit files in due course to make sure its recorded correctly, they are around 4-6 weeks behind real time