Voluntary Surrender Vehicle Yes/No ?

[Jimbocrackers]

Hi All,

 

Can anyone advise me on this.

 

Purchased new vehicle 2004 on HP, via Main Dealer for about £26000. This was when everything in the Garden was rosie!

 

Paid monthly for around 2 years reducing balance to £16000, then because of loss of job was unable to continue the payments, and last paid for the vehicle around 11 months ago. The debt seems to get passed to varoius DCC`s over the last year, all of which to date I have advised them i cannot pay, as not working. The latest company has now issued me with a Voluntary Surrender notice, which i am tempted to complete.

 

However, they have told me that i should expect around £8000 for the vehicle which they will submit to auction with no reserve. They will then of course ask me for the remaining £8000, which to be honest is well beyond what i can afford. I can get £11000 for it from a dealer, and even a family friend has offered me £13000 for it, but of course there will still be HP outstanding on it.

 

Is there anyway i can pass the vehicle onto the dealer, or friend, GET THEM to pay the DCC direct, then come to an arrangment with them over the balance, without any ties to the new owners?

 

Hope that makes sense, any advice would be appreciated.

 

Jimmy

[andromeda411]

hi there,

 

check your agreement as if you have paid a certain amount you should have the right to hand back the car without any more payments.

it should come inder a section 'termination your rights'

 

regards

 

andromeda411

[sequenci]

Do you actually have the right to do this? Was the total charge for credit £25,000 or less? If it is the full £26,000 on credit your agreement doesn't fit within the monetary confines of the consumer credit act and thus the right to terminate under s99 may not be possible under your agreement.

[setmefree]

Yes the above post is correct,the reason they are asking you to complete a Voluntary Surrender notice is that they would have to take you to court to seize the vehicle because of the amount you have already paid.

Contact these clowns and offer them a monthly amount which you can afford,and tell them you are aware of your rights corncerning the procedures that they have to now follow.

Good Luck

[setmefree]

You can terminate an HP agreement and return the goods at any time by writing to the lender, as long as you bring your total payments up to half the price of the goods (the exact amount will be stated in a box on the front of your contract). But you will also have to pay off any credit you took out to pay for insurance. If you have already paid half, you only have to pay for any missed payments or damage to the goods. But if you have already paid more than this amount, you will not get a refund of the difference. You should not be charged to return the goods. If under the terms of your contract you must take the goods back, this should only be to premises within a reasonable distance of your home.

[setmefree]

If it is the full £26,000 on credit your agreement doesn't fit within the monetary confines of the consumer credit act and thus the right to terminate under s99 may not be possible under your agreement.

 

yes this is also true

 

but most companies would take reduced payments rather than go to court

[sequenci]

if the agreement is unregulated, will you need a return of goods order in order to repossess the vehicle? you would need to check the terms of the contract, surely?

[setmefree]

yes sequenci the contract would have to be checked first, i'm sure if this vehicle was purchased from a main dealer they would have a reputable lender, and as long as you contact these people they will usually reduce the monthly amount payable.

Jinmbocrackers was there not a cover to take out covering you unemployment and sickness ??

[yaffsimone1]

How good a friend are they? Would they consider paying it off completely £16000.00 and then have you owing the £3000.00 to them, at least then it will be paid and they will own the car with no ties.

 

Or will the DCA accept a settlement figure of £13000.00 to pay off the car.

[Jimbocrackers]

Hi Thanks for all the replies so far, i am just checking the paperwork now.

 

I am sure less than half the debt has been paid, and we did not take out extra insurance at the time ( silly i know ).

 

Ill check the paperwork, and post more details.

[SteeveF]

Normally only regulated agreements , under £25K need a court order for repossession when you have paid over 33% , but you have to be carefull as some Finance companies are getting borrowers to waive their rights when they sign up for finance although this is normally on high rate adverse credit agreements.

You can hand the vehicle back providing it is in good condition etc and have paid at least a half and you are not in arrears on the agreement.

It may be worth bringing the account up to date and then obtaining a settlement figure to clear the aggreement.Then sell the car and clear the settlement , it may work in your favour to do this.!

All finanace companies will not negotiate while you are in arrears , which is why in your case 11 months behind your account has been passed for outside collection.

Hope this is of some help!

 

Steve

[Jimbocrackers]

Hi,

 

I have eventually obtained some amounts which have been paid.

 

The car is basically sitting on my driveway, and now not being used since the tax run out at the end of March. The finance company are calling me daily, wanting me to complete the Voluntary Surrender paperwork. If i do this they said they may get £8000 for the vehicle and want me to then pay the further £8000 outstanding.

 

Total amount of finance was £29000 at time of purchase

Balance owed to date £16000

I have paid to date £12000

Arrears are £4500

 

I think i am around £2300 short of the 50% payments amount.

 

I have a friend willing to give me £12000 and even a local dealer offering £10500 so it all seems a bit unfair really. The £8000 quoted by the finace company, as to what they "might" get is only a guess. The vehicle will be auctioned off with no reserve, so if its raining or theres something good on the TV that day, it could in theory go for peanuts !!

 

So what should i do :? :? :? I could just say S*D it and let it go, then they will have to chase me for months for the balance, probably going through the courts, as i cant russel up a Grand let alone 8 , or are there any other options open to me

 

Any advice please

 

Jimbo

[powelll]

If the car is no longer essential to you and you have pretty much accepted that you can't afford it ( which seems to be the case ). It becomes what's known as a 'non priority' debt ie they are limited to pursuing you using DCAs ( who aren't bailiffs so no right of entry to your property ) or going via the county court route ( bearing in mind not all creditors will take this route ).

 

The usual advice with non priority debt is that you draw up a budget, list income then essential bills & expenses only - no payments towards non priority debt. Any surplus you have left however small is all you can afford towards non priority debts.

 

You may find it useful to speak to national Debtline on freephone 0808 808 4000 for free confidential independent advice; they can base the advice on your whole situation not just a single debt.

 

Best of luck

[lookinforinfo]

Sequenci is correct in saying that at the time of the original date of your contract the upper limit on the CCA 1974 was £25,000. Does the loan

agreement form confirm that yours is a regulated loan under the Act?

I accept that in 2006 an amendment to the Act has removed the upper limiit

but I doubt that it will apply to contracts written before 2006.

 

If whoever owns your debt at the moment is prepared to accept that yours

is a regulated contract within the Act [and I will be surprised if they do]

then if you can raise [or borrow] the arrears of £4500 and return the car

voluntarily, then that would terminate any claim that the creditor would

have. except for any damage there may be to the car, and any additional

arrears since the £4500 was computed.

That seems a better bet than facing a bill of £8000 or so especially as there

is no guarantee that the car will fetch the estimated value at auction-

leaving you with an even bigger bill and having interest added.

 

Alternatively if your friend is serious about paying £13000 for the car, that

would reduce the debt to £4000 and would make the creditor a lot happier

to get so much money so quickly and greatly reducing the amount they are

currently at risk for.

 

I do not like these deals where you do not own the car until the final

payment-you are locked in. But it may well be that the creditor will see the

sense in selling the car to your friend-there is certainly nothing to lose by asking them.

[humbleman]

I think if the lender used an agreement headed REGULATED BY CCA 1974' then they have waived their rights to the limit of 25k. IMO

[Jimbocrackers]

Thanks for the replies.

 

The finance company thats chasing the debt now, is a gather the 3rd company which has "purchased" the debt from the original finance company - GE Capital Woodchester.

 

The current debt collection company have stated that the only options i have are to surrender the car, or pay the arrears.

 

Selling it to another party was not an option, as after the sale they would still have a claim on the vehicle.