Help please :)

[Newartriot84]

Hi all,

 

Sorry if this has been covered before.

 

I’m just unsure as to what to do.

 

I have a £17k HP on a car.

I’ve only paid 1year of this but I’m struggling to pay this fee every month for a car and need to hang it back.

 

I read that I need to have paid 50% but I’m not sure if this is 50% of the capital or 50% of the total including interest.

 

Regardless of how much

I was wondering do I need to pay this extra to end the agreement or can I settle this after handing the car back?

Thanks

 

Nick

Edited March 10, 2018 by dx100uk
Format

[dx100uk]

You can vt at anytime and you only have to pay up to the 50% mark minus car auction value

 

That figure should be listed on your agreement

 

Do not!!! VS or be conned into it

VT ONLY

[Newartriot84]

Hi

Thanks for the reply.

I’m just so worried because it’s actually affecting my ability to pay other things.

My car is still worth 5,100 as it was brand new (pre reg) when I got it so it’s only been on the road a year.

 

I’m confused because I didn’t know they’d take the auction value into account as if doesn’t say this on the website (presumably because they don’t want you to know?).

 

My friend worked out that so far in my first year I’ve obkgvrewlly paid about 1450 (the car itself was 8500 without interest) and if the resale value is 5000 will that mean I won’t have to pay anything after I file for this VT?

 

I have no clue what I’m doing but I need out of this agreement

 

it was the worst thing I’ve done financially and can’t go on like this.

 

I pay 550 for my car plus insurance every month.

 

Thanks again

 

Nick

[renegadeimp]

You can vt at any time. But you will have to pay up to 50% of the total amount including any arrears.

 

So if your car was financed for 10k then when you vt, you'll Have to pay 5k. That includes all payments made to date

[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 , your attachment to the car has been terminated.

.

although dependant on the way your agreement is written, they can charge excess mileage

.

this has been accepted at county courticon level, but afaik has not been tested in a higher court

..

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

..

 

 

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