Early Termination

cloudsix · 20 March 2018 at 12:36PM

Hi all.

My wife and I recently terminated a car loan agreement early. We were able to do so as we'd already paid half of the loan, and we returned the car to an auction centre.

We were aware that we'd then be given a final charge, usually relating to general wear and tear.

We received the final bill of ~£590. I'd assumed it would be more, so I was OK with this amount. However, before paying it I wanted to know what we were actually being charged *for*.

I called up and requested a break down of the charges. I received the "breakdown" in the post a few days later, and it simply said "wear & tear" charges.

I've spoken to them since and have asked for a proper breakdown of these charges, but it has been months now and they're basically beating around the bush.

Should I stand my ground on this? Is it unreasonable to want to know exactly what I'm paying for? What shall I do if they turn around and say they can't provide those details?

Thanks in advance!

MEM62 · 20 March 2018 at 2:31PM

I would say that it is not at all unreasonable to insist on an itemised list of the charges.

ratrace · 20 March 2018 at 3:13PM

yes ask for a clear breakdown before you pay anything, i have heard people being charged money for "wear & tear" which really should come under the bvlra agreement

National_Debtline · 20 March 2018 at 4:03PM

Hi Cloudsix and welcome to MSE,

When you voluntarily terminate a conditional sale agreement, you will be liable for 50% of the agreement, minus the money paid to date plus any excessive wear and tear costs, so if you are unsure what this £590 relates to, then you are right to ask for a breakdown.

If they are being awkward in providing this to you, then I would suggest a written formal complaint. Clearly stating that you are willing to pay, but you want to see a breakdown of how this was calculated first. Make it clear that you have asked for this several times before and this is their last chance to provide this. If they don't then you can ask them to write the debt off, and if they refuse then escalate the matter to the financial ombudsman service. Do all of this recorded delivery and keep a copy.

And as an additional point, keep an eye on your credit file. If they have registered any negative information (such as a late payment/ default) then you can also try and ask for that to be removed as part of your complaint as the delay in payment has been caused by their lack of communication. (Please be aware that the removal of this type of information would be discretionary). Good luck

Laura
@natdebtline

cloudsix · 29 March 2018 at 10:20AM

Thanks all, that's great feedback.

Laura - I will do that, thank you. Should I send said letter straight to Barclays, or to the debt collectors on the case? For some reason, they immediately pass the payment collection over to the debt collectors before any communication.

fiisch · 4 April 2018 at 11:05PM

https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

I would urge you to read this. I was in the same boat, but ultimately did not have to pay for excess mileage/wear and tear items, simply by following the advice in this article.

Early Termination

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