first response finance and Voluntary termination help

[TylerToxic]

Sent off a template letter and e-mail yesterday to VT a HP car that I have just made the last (halfway) payment on and have a few questions.

 

I specified in the letter that I only wish to deal with this in writing via email or post due to bad experiences with the rude finance company staff in the past 

(they immediately started ringing me after I sent the email,

I assume they don't wish to put their threats of 'you'll never get credit again, we'll get thousands out of you blabla' in writing!)

I wanted to double check that I am actually OK to insist this is all done in writing?

 

Also when do I cancel the insurance/tax and change the V5 over, I assume I am being reasonable enough if I do it after the 14 days I gave them in the VT letter?

 

Lastly if they come back to me with collection charges do I have to pay these? everything I have read says not but wanted to double check.

[AndyOrch]

With regards to cancelling the road tax....have a read of the following.

 

https://www.consumeractiongroup.co.uk/topic/418343-dvla-tax-resolved/

 

 

Andy

[dx100uk]

whos the company please??

 

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, [read below carefully regarding 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 but would be liable for any payments still to reach the 50 % mark,
 .  
it 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 Voluntary surrender].
dont get caught out!!
.
take extensive photos and video of the car inside and out 
and underneath [use a selfie stick] and in the engine compartment 
ALWAYS.
.
if they try and charge a repo fee or collection fee they cannot:
.
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..
.
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.
.
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...
..

 

 

 

[TylerToxic]

It's first response.

 

They would have recieved the VT letters (two sent 1st class on the 1st Oct with proof of postage to two of their offices - head office & account management office) yesterday and they definitely got and read the extra copy I emailed over as despite me telling them I would like to handle this in writing they immediately started calling me (I knew they would lol) 

 

Hopefully I will get a written response within the 14 days.

If I do or I don't I am sure I will be back to find out what I do next!

 

In the mean time I shall keep the car taxed & insured.

[dx100uk]

can you store it off road?

[TylerToxic]

No unfortunately I have no access to any private land so it's stuck sat on a public road outside the house until they decide to acknowledge the VT and move things forward.

 

[TylerToxic]

Ok so the finance co. have replied to my e-mail and have said that they cannot (will not) process the voluntary termination until they speak to me on the telephone and I must call them.

 

I assume this is incorrect? they have had two letters, both typed out but both signed by me so surely I have done what I need to do? cannot think of any reason for why I MUST call them other than for them to try argue with me. So frustrating.

[AndyOrch]

GIve them a ring then....no need to get into any argument or make any offers or admissions....simply tell them to refer to your letters dated ....

 

Andy

[TylerToxic]

Unfortunately it is never me who ends up being the one arguing lol. 

 

Two weeks after taking delivery of the car and I discovered a fault with it and called them I was told - why are you telling us, it's nothing to do with us it's your car. I pointed out that it was a HP agreement so the car is theirs and the lad on the phone insisted it wasn't. Funny because I had the agreement in my hand that stated right at the top ownership of the vehicle belongs to first response until final payment is made.

 

Also had many other dealings with them in which they have argued, lied, spoken to me like dirt and so on. Hence wanting to avoid calling because I know the call will consist of them threatening me with scary charges and trashing my credit rating, me saying no you won't then them getting angry and probably hanging up. They don't like their customers to know their rights or question them so conversations go nowhere fast.