Voluntary Termination of HP

moneyphobic

hi, I have a HP problem. I took a HP agreement out 18.07.2006 for credit £5760.00to buy a car. Due to losing job an several other financial problems I found it difficult keeping up with payments. My monthly payments where supposed to be £178.05 which i did pay for first year but could not afford them so have been on reduced payments ever since. In that time I have received additions to what I owe of the following "Late Payment Interest", "LPI Adjustment". This means according to my latest statement I still owe £6319.03. I have paid more than 50% of original amount but if I had kept up with payments then last payment should have been a week a go. I still have my car worth about £1800 so selling it would not clear the remainder.

I want to know how a voluntary termination would affect me. Would I still owe the Late Payment fee's? Is there anyway I can claim that they are excessive? Is it likely that a HP company would wave a certain amount of what is owed?

If I went to court under a CCJ do you think the court would settle the amount owed minus some or all of the "Penalty Fees"?

dedogsbolloxx

taff007 wrote: »

I believe it's 50% of the total payments due, so it would include interest.

on hp agreement it should have the vt figure on it

brobbo

considering doing a vt on my car, largely due to downgrade and the dealer wants to sting me with £1900 negative equity,would i be able to apply for finance straight after?

jimhunt22

I have VT'd 4 times. I have never had a problem getting credit for a car. Every single time I've been told by the credit company that it would effect my credit rating but I just knew it was rubbish. Get your next car before you VT by all means but forget about it affecting you later - it's just rubbish.

brobbo

jimhunt22 wrote: »

I have VT'd 4 times. I have never had a problem getting credit for a car. Every single time I've been told by the credit company that it would effect my credit rating but I just knew it was rubbish. Get your next car before you VT by all means but forget about it affecting you later - it's just rubbish.

i doubt ill be accepted for another car while this one is running. so i definitely wont be affected even though im going back to the same finance company?
with regards to vehicle condition, my car in perfect condition and is in standard form. so i take it i wont have to pay anything?

Bradley

brobbo

Just received a letter from ford credit, go's on about how much i have to pay but the bit that worries me is this part

"a voluntary termination flag will be registered on your credit file.other lenders will be able to see this flag as it is a true reflection on how the account ended with us.we cannot comment on how the flag will be interpreted by other lenders.but it may restrict your chances of gaining further finance.if you reapply for further finance with ford financial in the future the vt flag may be factored in our decision making process"

now has this been wrote to give me the shivers or is it a load of ball. becasue they havent actually said thit it WILL affect my chances,they seem to use a lot of words like "may" and "cannot comment".
all help is appreciated

Bradley

brobbo

brobbo wrote: »

Just received a letter from ford credit, go's on about how much i have to pay but the bit that worries me is this part

"a voluntary termination flag will be registered on your credit file.other lenders will be able to see this flag as it is a true reflection on how the account ended with us.we cannot comment on how the flag will be interpreted by other lenders.but it may restrict your chances of gaining further finance.if you reapply for further finance with ford financial in the future the vt flag may be factored in our decision making process"

now has this been wrote to give me the shivers or is it a load of ball. becasue they havent actually said thit it WILL affect my chances,they seem to use a lot of words like "may" and "cannot comment".
all help is appreciated

Bradley

anybody help at all?

brobbo

BUMP - anybody help at all?

Apples2

Impossible to answer as there are no hard and fast rules.

Ford Credit are correct in what they have said. It will have the VT marker so any furture lenders may see it and decide not to take you on.
they originally thought they were getting £xxxx out of you over the full course but all of a sudden you threw the towel in.

Rather than the term running it's course, they had to get involved in Auctioning the car, valuations, new agreements, revised forecasts etc.

On it's own it doesn't mean you are a bad manager of your finances, it arguably suggests you are a bad customer as you broke the previous contract with a clause exploit.

brobbo

so why would they say no to me in the future,
It says so in black and white on my agreement that i can end it so surely i havent broke the contract. breaking the contract would surely mean me not keeping up with my payments and them having to issue a court order?

just need some clarification as ive been told that nothing will happen by some and been told otherwise by others