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Voluntary Termination - Advantage Finance


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Evening all,

 

I could do with a bit of advice please.

 

In January 2016 the wife and I took finance out on a car with Advantage finance.

Unfortunately our circumstances have changed dramatically in that time and we can no longer afford to run the vehicle.

 

 

We have been in contact with StepChange debt charity and they have gone through our finances and the only logical way forward for us out of a bit of a mess is to Voluntarily terminate the agreement and give the car back.

 

 

We will still owe money on the vehicle as we haven't paid half the finance agreement,

but StepChange have said we will deal with that once Advantage have got the car back.

 

The advice I need is on the collection of the vehicle.

The vehicle has no major damage to it - no dents or rust etc.

There is a little scratch in the door which was there when we bought the car.

 

 

Advantage have been really pushy on the phone to my wife already - to the point of bullying.

 

 

I can understand from their point of view, in that they lent the money in good faith, but we are not burying our heads in the sand here, we are trying to do the best thing.

 

 

On the phone they said any any marks or damage to the car would be charged.

It is a 10 year old car, so of course it has the odd blemish here and there and, as I said, a scratch.

 

 

What constitutes 'fair wear and tear'?

Can I argue it at all if I don't agree with their assessment?

What should I do if the person that comes to collect the car puts on his inspection sheet that it has a scratch etc?

 

 

I am tempted not to sign it, or sign it as I am accepting they are taking the car but not accepting there is any 'damage' to it.

As I said the car is in as good, if not better, condition than when we got it.

 

The other thing is they are coming to collect the car Friday.

They have said they are going to charge £80 to collect the vehicle.

 

 

Now, StepChange have said they are not legally allowed to charge to collect the vehicle.

I have read online that they are not allowed to charge.

 

 

Does anyone have a definate answer as to if they can or can not charge to collect this car.

In the grand scheme of things £80 is a drop in the ocean to be honest, but it is more a point of principle.

 

Any advice would be most appreciated.

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that's advantage for you!!

 

 

you really need to STAY OFF THE PHONE.

 

 

they cant charge a fee

and neither can they for the scratch nor fair WAT.

 

 

take lots of photos

inside

outside

Underneath

inside Engine etc etc.

 

 

you MUST VT BY LETTER

 

 

This article explains well--

.

- Motor finance is an area which often requires an additional consideration when contemplating debt recovery action,

because the relevant credit agreement may be a hire-purchase or conditional sale agreement.

.

In these cases, where the debtor (or hirer) has paid over one third of the total amount payable,

the vehicle is provided with the special status of ‘protected goods’ under section 90 of the Act.

.

This means that it cannot be taken from the debtor without either a court order or his consent.

.

If a vehicle is taken in the absence of either of these,

then it could become an expensive and time-consuming exercise for the lender that entirely defeats

the purpose of seeking to recover the asset in the first place.

.

This is because section 91 provides that where section 90 is breached,

the debtor is released from all liability under the agreement,

but he retains a right to recover damages equal to all payments made.

.

These payments may even include the value of a part exchange vehicle.

.

The first issue to be addressed

– in common with all credit agreements

– is that of bringing the contract to an end through default and termination.

.

In the event that this is not done correctly,

then there is no basis upon which to take the vehicle,

and instead the debtor will retain his contractual right to possession under the terms of the agreement.

.

Assuming that the agreement has been brought to an end correctly,

then the contractual right to possession will terminate alongside the agreement.

But that is not the end of the story

.

– if the hirer has statutory protection against the owner

repossessing the vehicle under section 90,

then, in view of the consequences,

.

it means the lender will have to approach the matter with a certain degree of care.

.

In theory the easiest method of repossessing a protected vehicle is for the lender to obtain the debtor’s consent to take the vehicle from him.

This approach also has a commercial logic in minimising costs when ultimately they may not be recovered.

.

It is important to remember that the consent must be genuine and given voluntarily,

and, therefore, lenders should make sure that where third party recovery agents are used to repossess protected vehicles,

the processes that they adopt are reliable in this regard.

.

Practices involving either coercion or misrepresentation could cause licensing issues

when considered under the OFT Irresponsible Lending Guidance.

.

As a minimum,

the lender should obtain from the debtor a signed mandate at the time of the repossession,

stating clearly and unequivocally that the consent is given freely.

.

The mandate should also provide full details including the debtor’s name, address, vehicle description and related agreement number.

It is useful too if the mandate includes a declaration to this effect,

together with a comment on the fact that the keys and logbook have been provided

– such an approach is likely to indicate informed consent and so reduce the risk of any future claim under section 90.

.

If consent to repossess the protected vehicle cannot be obtained from the debtor,

the only option available to the lender is to obtain an order from the court for its return.

.

As ever, the process of issuing proceedings inevitably involves risk, additional costs

and may cause delay in recovering the vehicle because attendance at a hearing is likely to be necessary.

 

 

send the following letter by signed for delivery

you can VT AT ANYTIME, but MUST do so under s99/100cca1974

.

You must vt under s99/100 cca1974. do not sign any of their forms, or agree to pay any charges. The car has just to be in reasonable condition for its age. As you have paid in excess of 50% there will be nothing to pay bar any arrears.

.

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 paid more than the amount calculated under the formula in Section 100 the amount due is £xxxx

.

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

(unless you pay less than £1500 per year where you must give one months 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...

attend vehicle condition report, take dated photos from every angle

a short reasonable distance would be the distance you travelled to buy the car

 

 

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...

..

...........various notes above reprinted for you.......

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Thanks for the reply DX.

 

We have VT by letter, it was sent off recorded delivery on 28th September, and they received it on 29th September.

The letter was very similar to the last one you posted.

 

This is where all the rubbish about the collection fee started.

They wanted us to take the vehicle somewhere that would have resulted in approx 120 mile round trip.

 

My wife said that was not a reasonable distance and that she wanted someone to come out and collect.

They said they would send someone out but it would cost £80.

The woman at Advantage insisted they could charge it etc etc.

 

So, in your opinion do we sign the paperwork when he comes to collect or not. Or does it even matter?

It is just that I have this feeling Advantage are going to try and con us by claiming they need to repair this and that, and whack on a bill for collection etc. I will take photo's, I have already taken some, but will do more.

 

Thanks again for your advice.

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need to see your letter please

 

 

you must make ref to the act and its sections..

 

 

and include

 

 

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 don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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This is exactly what went off to Advantage:

 

XXXXX-XXXXX XXXXXX

XX XXXXXXXX

XX XXXXX

XXXXX

XXXX XXX

 

25.09.2016

 

Advantage Finance Ltd

Unit 7 Acorn Business Park

Moss Road

Grimsby

DN32 0LW

 

Dear Sir/Madam

 

VOLUNTARY TERMINATION OF AGREEMENT

 

Account No: XXXXXXX

 

I am writing to notify you that I am exercising my right to terminate the above Agreement under Section 99 of the Consumer Credit Act 1974. 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. Please forward notice of any sums lawfully due for consideration and payment.

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

Please confirm receipt of this request by telephone to me on XXXXX XXXXXX

Yours faithfully

 

 

XXXXX-XXXXX XXXXXX.

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great perfect.

 

no they cant charge you

 

and no you don't have to sign any documents.

again there is nothing in the act that states you have to sign anything.

 

did you get spoofed with GAP or PPI or any extras on the agreement.

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Share on other sites

that needs to be taken off then..

 

can you scan the agreement up please to PDF

 

follow the upload

 

we'll work out a figure

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Share on other sites

typical advantage nonsense, of course they hate vt,s

attend the condition report, take dated photographs from all angles, dont sign any of their forms

if you were to deliver

 

trading standards regard a short reasonable distance, as the distance that you travelled to purchase the vehicle

no charges can be made for collection

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Any help I am able to give is from my own experience only. Should you have any doubt you should contact a qualified professional.

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