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    • Lisa3527
    • By Lisa3527 4th Oct 17, 5:42 AM
    • 6Posts
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    Lisa3527
    Voluntary Termination of car finance
    • #1
    • 4th Oct 17, 5:42 AM
    Voluntary Termination of car finance 4th Oct 17 at 5:42 AM
    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.
Page 1
    • motorguy
    • By motorguy 4th Oct 17, 6:20 AM
    • 15,541 Posts
    • 8,894 Thanks
    motorguy
    • #2
    • 4th Oct 17, 6:20 AM
    • #2
    • 4th Oct 17, 6:20 AM
    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.
    Originally posted by Lisa3527
    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....
    You are not special. You are not a beautiful and unique snowflake.
    • fatbelly
    • By fatbelly 4th Oct 17, 8:14 AM
    • 11,356 Posts
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    fatbelly
    • #3
    • 4th Oct 17, 8:14 AM
    • #3
    • 4th Oct 17, 8:14 AM
    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 goods
    • Lisa3527
    • By Lisa3527 4th Oct 17, 8:22 AM
    • 6 Posts
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    Lisa3527
    • #4
    • 4th Oct 17, 8:22 AM
    • #4
    • 4th Oct 17, 8:22 AM
    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?
    • motorguy
    • By motorguy 4th Oct 17, 8:32 AM
    • 15,541 Posts
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    motorguy
    • #5
    • 4th Oct 17, 8:32 AM
    • #5
    • 4th Oct 17, 8:32 AM
    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?
    Originally posted by Lisa3527
    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?
    You are not special. You are not a beautiful and unique snowflake.
    • Lisa3527
    • By Lisa3527 4th Oct 17, 8:48 AM
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    Lisa3527
    • #6
    • 4th Oct 17, 8:48 AM
    • #6
    • 4th Oct 17, 8:48 AM
    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.
    • neilmcl
    • By neilmcl 4th Oct 17, 9:13 AM
    • 10,142 Posts
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    neilmcl
    • #7
    • 4th Oct 17, 9:13 AM
    • #7
    • 4th Oct 17, 9:13 AM
    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.
    • fatbelly
    • By fatbelly 4th Oct 17, 7:20 PM
    • 11,356 Posts
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    fatbelly
    • #8
    • 4th Oct 17, 7:20 PM
    • #8
    • 4th Oct 17, 7:20 PM
    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.
    Originally posted by Lisa3527
    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.
    Last edited by fatbelly; 04-10-2017 at 7:24 PM.
    • neilmcl
    • By neilmcl 4th Oct 17, 7:47 PM
    • 10,142 Posts
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    neilmcl
    • #9
    • 4th Oct 17, 7:47 PM
    • #9
    • 4th Oct 17, 7:47 PM
    The link in the previous post is not UK law. Over here hp agreements are covered by the Consumer Credit Act.
    Originally posted by fatbelly
    Apologies for that, assumed the link was from Experian in the UK.
    • Stella66
    • By Stella66 4th Oct 17, 7:51 PM
    • 139 Posts
    • 34 Thanks
    Stella66
    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.
    • fatbelly
    • By fatbelly 4th Oct 17, 9:36 PM
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    fatbelly
    If the agreement was terminated 2 years ago, l'm sure they would have had a court order then.
    Originally posted by Stella66
    OP, did you receive a court claim 2 years ago?
    • Lisa3527
    • By Lisa3527 5th Oct 17, 2:49 PM
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    Lisa3527
    No l never received a court claim. The account was not even in arrears when it was terminated. The reason was that l went into a debt management plan, the car finance was not part of it, they found out about the DMP and said it was in breach of the t&c of hire purchase agreement.
    • fatbelly
    • By fatbelly 5th Oct 17, 6:25 PM
    • 11,356 Posts
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    fatbelly
    No l never received a court claim. The account was not even in arrears when it was terminated. The reason was that l went into a debt management plan, the car finance was not part of it, they found out about the DMP and said it was in breach of the t&c of hire purchase agreement.
    Originally posted by Lisa3527
    That sounds completely unreasonable. A dmp is not even a formal solution.

    I have had clients in a Debt Relief Order who have continued in a HP agreement with a third party making the payments.

    Have you checked the t&cs? Even if that is what it says, it may be worth challenging this, and maybe referring the whole thing to the Financial Ombudsman Service.
    • bigadaj
    • By bigadaj 7th Oct 17, 5:47 AM
    • 10,309 Posts
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    bigadaj
    That sounds completely unreasonable. A dmp is not even a formal solution.

    I have had clients in a Debt Relief Order who have continued in a HP agreement with a third party making the payments.

    Have you checked the t&cs? Even if that is what it says, it may be worth challenging this, and maybe referring the whole thing to the Financial Ombudsman Service.
    Originally posted by fatbelly
    Yes but there seem to also have been missed payments which will have breached the agreement.

    In relation to why the car hasn't been repossessed then I suppose it's a risk based decision from the lender. This appears to have worked out for them as they've had another two years of payments, can repossess at any time and pursue for arrears though the probability of them recovering arrears may be slim. I'd suggest that the finance may be at a high rate as well, so a lot of potential profit for the lender over the last couple of years.
    • fatbelly
    • By fatbelly 7th Oct 17, 8:00 AM
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    fatbelly
    Yes but there seem to also have been missed payments which will have breached the agreement.

    In relation to why the car hasn't been repossessed then I suppose it's a risk based decision from the lender. This appears to have worked out for them as they've had another two years of payments, can repossess at any time and pursue for arrears though the probability of them recovering arrears may be slim. I'd suggest that the finance may be at a high rate as well, so a lot of potential profit for the lender over the last couple of years.
    Originally posted by bigadaj
    I agree that's more likely - it just wasn't the reason the OP gave for the termination.

    I agree with the second bit as well. I suspect the car was not new at the start of the agreement and is now worth little, but the OP hasn't said. Though whether they can repossess at any time, without a court order, would depend on whether a third had been paid at the point of termination.
    • Lisa3527
    • By Lisa3527 7th Oct 17, 9:40 PM
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    Lisa3527
    There were no arrears at the time of termination. The reason was that l had debt management plan, and according to them this was in breach of the t&c.
    Yes the car was second hand, 3 years when l bought it.
    • fatbelly
    • By fatbelly 7th Oct 17, 9:57 PM
    • 11,356 Posts
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    fatbelly
    The terms & conditions don't seem to be available online. You'd need to check what you signed and ask them for a copy if you can't find them. Then make a formal complaint

    https://www.moneyway.co.uk/complaints-and-resolutions

    then refer the result to FOS
    • bigadaj
    • By bigadaj 8th Oct 17, 12:11 PM
    • 10,309 Posts
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    bigadaj
    There were no arrears at the time of termination. The reason was that l had debt management plan, and according to them this was in breach of the t&c.
    Yes the car was second hand, 3 years when l bought it.
    Originally posted by Lisa3527
    You said your account was two months behind in September, doesn't this mean you missed payments?
    • Lisa3527
    • By Lisa3527 8th Oct 17, 9:42 PM
    • 6 Posts
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    Lisa3527
    These are current arrears, which are the reason l'm seeking voluntary termination as l pointed out in my original post.
    • Cornucopia
    • By Cornucopia 8th Oct 17, 9:48 PM
    • 9,268 Posts
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    Cornucopia
    If you ask for a Settlement figure, and obtain a valuation of the vehicle e.g. from WeBuyAnyCar, you can compare the two and work out what you owe.
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