Voluntary Termination of car finance
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Hi I'm new here.
l have car finance with Moneyway, and have paid about 55% of the agreement. Unfortunately l lost my job end of July and can no longer keep up with the payments. My account was one month in arrears. After reading through this forum, l decided that voluntary termination was the best option, so l sent a letter requesting this.
I have received a letter back saying l can't do a voluntary termination because my agreement was terminated 2 years ago, my only option is to voluntary surrender. I'm confused about this, l know l had issues with the lender 2 years ago, when l had a debt management plan, though the car finance was not part of it, they terminated the agreement and attempted to repossess the car. After clarify the issue, l kept the car and they have continued to collect the payments and send me statements and update it on my credit file.
They even issued me with a default notice when my account fell 2 months behind in September. I have talked to them about this but they still insist that my agreement was terminated, so l have lost my right to voluntary terminate, but l can voluntary surrender or they will repossess the vehicle.
What are my options here please? Or do l just have to voluntary surrender to them?
Thank you for your help.
l have car finance with Moneyway, and have paid about 55% of the agreement. Unfortunately l lost my job end of July and can no longer keep up with the payments. My account was one month in arrears. After reading through this forum, l decided that voluntary termination was the best option, so l sent a letter requesting this.
I have received a letter back saying l can't do a voluntary termination because my agreement was terminated 2 years ago, my only option is to voluntary surrender. I'm confused about this, l know l had issues with the lender 2 years ago, when l had a debt management plan, though the car finance was not part of it, they terminated the agreement and attempted to repossess the car. After clarify the issue, l kept the car and they have continued to collect the payments and send me statements and update it on my credit file.
They even issued me with a default notice when my account fell 2 months behind in September. I have talked to them about this but they still insist that my agreement was terminated, so l have lost my right to voluntary terminate, but l can voluntary surrender or they will repossess the vehicle.
What are my options here please? Or do l just have to voluntary surrender to them?
Thank you for your help.
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Comments
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Hi I'm new here.
l have car finance with Moneyway, and have paid about 55% of the agreement. Unfortunately l lost my job end of July and can no longer keep up with the payments. My account was one month in arrears. After reading through this forum, l decided that voluntary termination was the best option, so l sent a letter requesting this.
I have received a letter back saying l can't do a voluntary termination because my agreement was terminated 2 years ago, my only option is to voluntary surrender. I'm confused about this, l know l had issues with the lender 2 years ago, when l had a debt management plan, though the car finance was not part of it, they terminated the agreement and attempted to repossess the car. After clarify the issue, l kept the car and they have continued to collect the payments and send me statements and update it on my credit file.
They even issued me with a default notice when my account fell 2 months behind in September. I have talked to them about this but they still insist that my agreement was terminated, so l have lost my right to voluntary terminate, but l can voluntary surrender or they will repossess the vehicle.
What are my options here please? Or do l just have to voluntary surrender to them?
Thank you for your help.
It is my understanding that because you have missed a payment / been in arrears you have lost your statutory right to VT.
From their end if they did terminate the agreement due to missed payments 2 years ago they've been quite smart in anticipating a future VT and mitigating their risks.
A voluntary surrender means - if i recall correctly - they can pursue you for the difference between what you owe them and what the car makes at auction.
Tread very carefully....0 -
If this is HP/conditional sale and they have issued a default notice that has expired, then you have lost the right to VT
https://www.nationaldebtline.org/EW/factsheets/Pages/hire-purchase-debt/hire-purchase-and-conditional-sale.aspx
explains.
You can voluntarily surrender or wait and see if they start a court claim for return of goods0 -
Thank you for your replies. What l do not understand is if the agreement was terminated 2 years ago, why have they been collecting the payments and not collected the car?
They also issued me a default notice this September when the account went 2 months in arrears, so what would be the default on if there is no agreement?0 -
Thank you for your replies. What l do not understand is if the agreement was terminated 2 years ago, why have they been collecting the payments and not collected the car?
They also issued me a default notice this September when the account went 2 months in arrears, so what would be the default on if there is no agreement?
They've opted not to collect the car as you've continued to pay (of sorts).
That has worked in your favour as they havent (yet) repossessed it, so i wouldnt rely to heavily on that as "evidence" you can VT or are "in the clear".
Whats the car worth relative to what you owe?0 -
So the only option l have is to voluntary surrender? The car is worth less than what l owe so l will most definitely owe even when the car is gone.
It scares me to think that l would have had the car repossess at anytime they wanted to, without me being aware of it.0 -
You might want to read the following
https://www.experian.com/blogs/ask-experian/the-impact-of-a-voluntary-vehicle-surrender/
As others have said you have lost the right to VT once you defaulted, the finance co. have done you a favour and not repossessed then and there but the end of the day you still owe them so you will need to find exactly how much is owing and how much value you still have in the car.0 -
So the only option l have is to voluntary surrender? The car is worth less than what l owe so l will most definitely owe even when the car is gone.
It scares me to think that l would have had the car repossess at anytime they wanted to, without me being aware of it.
No, if you have paid more than a third, they need a court order to collect the goods. To wait for that, while making or not making payments, opting to defend any court claim or not, are all part of option 1. A return of goods order can be suspended on payments. It's in that factsheet in post 3
A voluntary surrender is a second option
The link in the previous post is not UK law. Over here hp agreements are covered by the Consumer Credit Act.0 -
If the agreement was terminated 2 years ago, l'm sure they would have had a court order then. So they might use that to repossess the car. What l do not understand is why will they be collecting payments for 2 years. It definitely is not favour as others have pointed out.
I would seek legal advice.0
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