Questions about VT with Moneybarn

[Pandora275]

Hi all

 

I’m being offered a company car but at present I’m over halfway through my finance with MB

 

My worry is that when they inspect it, they’ll note things that were either there when I bought it (couple of dimple dents on roof) etc or that there are mechanical issues that need sorting (MOT due in January) how do I protect myself from being billed for that?

 

I have service history from Citroen (it’s a 2012) plate.  Say they take it and turns out auction doesn’t cover the balance of the finance, will I be liable for that?

 

Ive never missed a payment to them either.

 

Many Thanks 

[dx100uk]

you have paid more than 50%

end of the matter

 

i'll post up  VT notes below

that should answer you all ok:

 

………….

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...
..

 

 

…….

 

dx

 

 

 

[Pandora275]

Thanks

 

if they decide that I owe them money I just ignore them?

Or is the worst that could happen is that I work out a payment plan with them?

 

im due a payment on 1st December so I’ll pay that as normal anyway 

ive looked into selling and paying off the finance that way but I’m still going to be in negative equity 

[dx100uk]

they cant charge you damage, they will have no photo proof it wasn't there on delivery 

simply follow the guide esp re video's etc

 

pers i'd wack in your VT by recorded delivery tomorrow

why pay ?? you will simply be wasting it , you've already paid + 50% don't give free money to moneybarn.

[Pandora275]

Not so much damage as stuff needing done to pass the next MOT for example, like brake pads etc 

 

I don’t want to peeve them off as I might need them in future lol plus I don’t know when I can get my company car so can’t be without a car 

[dx100uk]

not your problem.

 

pers i'd rather walk than ever use the likes of moneybarn..

[Pandora275]

did the VT letter and BCA guy came out for the car last week.  

 

I’ve since had a letter from Moneybarn stating a current amount of two months payments outstanding (in way over the 50% mark)

 

I thought that according to the CCA though that I wasn’t liable the arrears as long as I’d paid more than 50%
 

what happens if they put it to auction and it doesn't make what they expect?

 

Will I be billed for the shortfall? 

[dx100uk]

Already explained

Go back and read post 2 carefully....

 

Dx

[Pandora275]

So the most I’d have to pay is the arrears? Sorry all this is new to me 

 

thanks 

[dx100uk]

Youve never missed a payment

How can you have any arrears??

[Pandora275]

Because I never paid December and January’s payments as I knew I was doing VT but there were no missed payments up until December 

[dx100uk]

but you are well over the 50% ...

[Pandora275]

I know, but the letter they’ve sent me states that I owe the equivalent of the two months that I’ve not paid.  It’s not the final balance so I’ll wait til I get that and see what they say 

[dx100uk]

vt should be actioned from the date of your letter..

you might owe 1 p'haps certainly not two payments

but that moneybarn for you....

 

VT letter was sent was sent very close to payment due date

check on your agreement payment date.

 

dx

 

i

[Pandora275]

Cheers 

 

if they tell me I owe them more than the arrears then they’re in the wrong?

Ie if it goes to auction and they don’t get a lot, can they try to claw back the difference from me?

[dx100uk]

not sure what you are not understanding....

they cannot charge you anything more... you are over the 50% mark on payments.

and even if you were not..

what they get at the auction is immaterial...

 

what date did you sent the VT?

what date was your next payment due ..look at the monthly payment date state on the agreement you signed...

 

if the vt letter not with them before your next contractual payment was due

the ONLY think you might owe is than ONE contractual payment.

 

if they got the VT in good time, before due date..you owe nothing.

 

dx

 

 

 

 

[Pandora275]

Thanks, like I said it’s all new to me and just I just need to be clear on where I stand if I start getting letters from them

[dx100uk]

being in a forum means you should also be self helping

 

Can   't see youve read any other Moneybarn VT thread here in 2 mts...

[Pandora275]

I actually have earlier on but couldn’t see any relevant recent ones or ones that answered my particular worry.  I appreciate your responses and will leave now, thanks 

 

[dx100uk]

No stop worrying about nothing and take control..not run away..

[Pandora275]

got my letter back from Moneybarn to say no refurbishment required and would be put up for auction.

 

letter states that the remainder of the finance is still due with half rule obligation amount of two months arrears

(I never paid Dec and Jan As knew I’d be VTing and company car took longer than expected to get arranged) even without the arrears I had still paid more than half as it was a 5 year deal that started in Feb 2017 so nearly 3 years ago now

 

should I still have to pay the arrears even though I’ve already pay more than half?

 

Sorry if I’m appearing dim in these things.  I

 

’ve attached the letter they sent 

 

[dx100uk]

images/posts removed
.
please do not post jpg picture images directly to a post
.
read upload and redact in jpg then convert using on of the listed websites there to convert to one multipage pdf only

.
that way only logged-in,registered and approved caggers are the only ones that can download and see them
.
else anyone can see them caggers or not.

dx

[Pandora275]

Sorry

 

says account balance at point of vehicle return is :£xxxx.xx

 

half rule obligation at this stage is: £equivalent of 2 months arrears

 

once it goes to auction I hope that all I’d be outstanding is arrears even though I’ve already paid over half without them? Is that how it works?

[dx100uk]

pdf please read upload carefully

 

and please answer the questions I asked in post 16

[Pandora275]

I sent the VT letter 9th jan by which time I’d missed two payments.... 1st Dec and 3rd Jan I didn’t send the VT letter til then because there was a hold up on getting the company car and I couldn’t be without a car

 

I guess I owe them two months which is fair enough