Fallen behind on PCP, company called Anglia trying to contact me.

[Paperbackwriter]

Hi guys, hope someone can offer some advice.

 

During the last lockdown, me and the mrs were both furloughed from our minimum wage jobs. Tried our hardest to keep on top of bills, rent, council tax and food all obviously taking priority.

 

Unfortunately, during that time we missed two of our PCP payments to Ford Credit.

 

Contacted them through their web portal, asking for a payment break - flat out declined, no reason given.

 

Now, a couple of months later, I have a rep from a company called Anglia trying to contact me. Not spoken to them yet - I work as a van driver (not been furloughed second time round, yet) and can't take calls during the day. And, to be honest, not keen on speaking to them until I know a little more about what they're about. Don't want to drop myself in it by saying the wrong thing.

 

Situation re the finance is thus:

 

PCP is due to end next August.

We have paid off over 50% of the car.

We owe two missed payments.

We were thinking of trying to terminate the agreement early, even before we missed any payments, as we bought this car when I was in a better job and we had less debt. Now the payments are more of a burden than they used to be, so we were thinking of handing the car back, cancelling the agreement and buying a much cheaper used car to keep us going through the lean times.

 

Given all this information, what do people think would be a good course of action to take? We're already stressed enough as it is with trying to catch up on bills atm (as I imagine many, many people are) and having another company chasing us about a vehicle that, in all honesty, feels more of a burden than a blessing these days, is the last thing we want.

 

Thanks in advance for any advice, guys.

[dx100uk]

you have paid more than 1/3rd, the car is now considered protected goods under the consumer credit act

NO-ONE let alone anglia - who are a powerless repo company can take the car without YOU agreeing to give it too them. - don't!!

 

for now don't park the car on a public road mind

 

they CANNOT take it from private land like your driveway and 1000% are not bailiffs or anything and have ZERO legal powers whatsoever.

no need to engage with them at all.

 

it's worthy to note should they take the car, you can take them to court and void the whole agreement and keep the car and get all your payments back under the CCA.

 

i would expect ford credit have defaulted your credit file and must of sent numerous letters , as its unusual to not hear anything previous

 

you are quite entitled to hand the car back 

BUT DO NOT RING ANYONE AND DO NOT GO FOR A VOLUNTARY SURRENDER

 

you have paid more than 50% so you will owe nothing more

voluntary terminate your agreement today

follow the guide below.

you are also safe to now stop any further payments once you have sent our letter.

 

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

 

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 court 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...
..

 

 

 

 

 

 

 

[Paperbackwriter]

DC.... Amazing reply, thank you so much.

 

I will copy/paste that, print it off tomorrow, post it straight off.

 

So if I read correctly, I can terminate the agreement, effective immediately, give the car back (specifying TERMINATION not surrender) and all I owe is the arrears of two months payments, yes?

 

If so, it's exactly what we need in these tight times. It'd save us a lot of stress, not to mention £200 a month.

 

This forum is amazing. So many rights we have as consumers, but no-one will tell you what you can do unless you go looking for it on places like here.

[dx100uk]

well thats a VT letter, the VS bit was just to warn people.

 

they might not even mention the arrears so just send the letter

but be aware that if they do, check arrears wanted do not contain penalty fees (i'e a fixed £ figure for being late/over/letter/in arrears) they are unlawful and should not be paid

 

[Paperbackwriter]

Thanks DX!

 

I'll get this sent off asap. After such a **** year, I want next year to be the one we get all our finances back under control.

 

And if that means slumming it in a £500 banger for a year or two, so be it.

[Paperbackwriter]

Just had a knock on the door from an Anglia rep.

 

Tbh, very nice man.

 

Told him that I'm VTing the car and he said fine, no problem, he'll head off and wait for Ford Credit to pass him the information.

[Paperbackwriter]

UPDATE -

 

Ford Credit received the VT and passed it on to Anglia to arrange the recovery.

 

Spoke to the Anglia rep again, he says he's got some forms for me to fill out re the collection. Then collection should be about a week from signing the forms.

 

Does this all sound above board?

 

Thanks guys.

[dx100uk]

correct as long as you are not being asked to pay anything nor sign anything that makes you responsible for and W&T that was already there when you got the car.

 

have you, as advised in the earlier guide...got your photographic evidence together...

[Paperbackwriter]

Taking it to the friendly Romanians around the corner on the weekend to get it cleaned, then taking some pictures in the daylight. Always dark before/after work at the moment.

 

Funnily enough, even the chap from Anglia advised doing that, too. Poor chap seems a little morose about having to do his job at the moment. Says that most creditors are being very charitable in these hard, unprecedented times, but finance companies are being real sticks in the mud, which is good for him, cos he's busy, but not so good for the many people who are struggling.

 

Thanks again for the advice, mate. Wouldn't have known where to begin without this board.

[theoldrouge]

Be very careful what you are signing 

You do not pay for collection

Photograph from every angle with date of photos 

[Paperbackwriter]

Will do, rouge, thank you.

[dx100uk]

i think it's wise to add for future readers just WHAT anglia, burlington or any flatbed driver that turns up can do...

 

in a nutshell NOTHING, they are NOT BAILIFFS

they have ABSOLUTELY ZERO LEGAL POWERS

they most certainly cannot take any car on private property without you consent.

and it doesn't matter what paperwork they have , they are NOT court BAILIFFS either.

 

the only danger you have is if you leave your car on a public road.

 

dx

 

[Paperbackwriter]

Right, VT has gone through already.

 

Anglia coming to pick the car up tomorrow morning.

 

I've given it as much of a clean as I can (none of the local carwashes are open with it being lockdown) and taken photos inside and out.

 

Noticed one little 1cm scratch on the rear bumper. Couple of small scuffs on the front alloys, but nothing major, and nothing I'd put as above general wear and tear for a car that's seen daily use commuting, going on holidays etc for three years.

[Paperbackwriter]

The car is now gone!

 

Anglia arrived and picked it up this morning.

 

Now to wait to see if Ford try to get extra money out of me for wear and tear/mileage etc.

[dx100uk]

which you will not be paying.

you've paid well over 50% anyway too.

[Paperbackwriter]

Haha, do you have notifications set for every new post, dx?

 

Legally, what extra can they charge me for, now that the car is gone?

 

Obviously I still owe my two months' arrears, which I wouldn't try to get out of anyway, but yes, I've paid well over 50% so don't owe anything more on the car now. But wear/tear? Touching up any small scratches they might find? Extra mileage? (We put 6k miles per annum on the agreement, at time of sending car back it's averaged more like 7k).

[dx100uk]

everyone gets an email notification to their signup email if they've posted on your thread, same as the email for this post to you.

 

well TBH it doesn't really matter you've paid more than the 50% as such, but well they received more than the 50% so it's a bonus to them.

 

excess mileage is a bit of a sticking point, 

 

you might find this thread useful

toward the end more than the start.

 

as for W&T they can't prove anything unless they have photo's of when you got it...they won't, scratch  it wasn't me gov!!

 

dx