Help please - can I hand car back?

Glasgowkiss84

Hello,

I hope you can help. We took a car out, paperwork is headed ' Credit Agreement Regulated by the Consumer Credit Act 1974'

In the agreement it states 'You do not not have the right to cancel this agreement under the Consumer Credit Act 1974 or the time share act 1992. In addition you will not have any right to cancel under the Financial Services (distance marketing) regulations 2004 unless we tell you otherwise in writing.'

We have paid more than 50%, but can we hand car back given this statement?

Thanks in advance,

GK

Ps. Have posted this on loans too as not sure where I would get best response!

Money_Grabber13579

Does the consumer credit act not give the person the right to cancel? If so, they can't say that they are exempt from that part of the law and expect to get away with it.

Glasgowkiss84

Money_Grabber13579 wrote: »

Does the consumer credit act not give the person the right to cancel? If so, they can't say that they are exempt from that part of the law and expect to get away with it.

I am hoping this to be the case!

Thanks

Money_Grabber13579

I can't claim to be anything of an expert on what the CCA 1984 says, but from what I remember of a law module at University, companies can't exempt themselves from the law by adding a disclaimer saying they are exempt.

I would've thought that the CCA would have given some rights to cancellation though.

Hintza

I am assuming you have had the car for a year or so.

So Distance Selling has nothing to do with it.

The rest will depend on what type of loan you have. If you have a PCP agreement then yes but if it is just a straight HP loan I don't think that is the case.

So what deal do you have? Is there a balloon payment at the end?

Glasgowkiss84

Thanks for the replies,

I am lazily going to paste what I answered on the loan forum.
___________________________________________________________________

Thanks guys,

I have read through this agreement a few times now:

Brock: Through out the terms and conditions (two pages long in tiny print) it consistently talks about the goods - keeping the goods in good condition, keeping the goods insured, keeping the goods serviced etc.... Would it say all this if it was a personal loan? Also we either give car back OR make balloon payment so my feeling is it is not a personal loan.

B-A-A-B: It has none of those other headings anywhere. From reading it, I really think it is some kind of HP/conditional sale agreement. I just think they have worded this to confuse us in this situation!

There is a box that says ' The Consumer Credit Act 1974 lays down certain requirements for your protection which should have been complied with when this agreement was made. If they were not we cannot enforce this agreement without a court order. The act also gives you a number of rights 1) you can settle this agreement at any time by giving notice in writing and paying off the amount you owe under the agreement which may be reducced by a rebate. 2) If you received unsatisfactory goods or services paid for under this agreement, you have the right to sue the supplier or us both. 3) You can still sue us if the supplier goes out of business'.

It also says in the small print somewhere 'If a clause or section of tis agreement is not legally effective, the remainder of this agreement will remain effective.

It's not my car it's my OH. Even if we had the option to sell it wouldn't cover the finance. I dont think we can sell becausee it also say things like 'you cannot let a creditor take the goods, you cannot give anyone rights or possesion of the goods'.

We will call the finance people today but don't want to be fobbed off so your thoughts are greatly appreciated. Would be very helpful to get rid of the car instead of letting it run into next year.

___________________________________________________________________

Hintza: Yes I should have mentioned this first post - sorry! Yes, a balloon payment or hand the car back. When sold at the time we were told the usual BS - you have a low balloon payment but car will prob be worth more than that so you will have equity. Sadly it's an RX-8 and it is never going to have any equity!

Any further thoughts?

Hintza

Do some googling on the finance provider to get a feel if they are (how to phrase this?)..........one of the more mainstream companies (or backed by one).

Glasgowkiss84

Its capital bank plc................

What does that make them hehe?

Glasgowkiss84

Ok, I'm just off the phone to Capital Bank. Spoke with someone who first said it was a personal loan but I queried that as the paper work has so much to do with the car on it. (inc mileage allowance and others as per above posts). She then changed her mind, and said that I have a 'Car Credit Sale' agreement

She said we can't hand the car back before the balloon payment is due. She said we could voluntary assign the car to them which means they would sell car at auction and then we would have to pay the difference.

I pushed her on the VT but she said no, it tells me on my loan agreement I can't VT. At that point I said just because you have said that on the agreement doesn't make it true - ie you can't take away my rights under the CCA 1974. I said this, but do not know if it is itrue - I was just trying to push her to see if she would change her mind on the volutary terminate.


Any thoughts?? Does this mean I cannot VT?

I would really appreciate your help.

GK

Benji

Hi, the CCA only gives you 14 days to return items. Due to depreciation etc on cars, the car could conceivably be worth less now than you actually owe - if you were the credit company you wouldn't want to write off (say) £2500 of debt in exchange for a car that's now only worth £1500.

There is a box that says ' The Consumer Credit Act 1974 lays down certain requirements for your protection which should have been complied with when this agreement was made. If they were not we cannot enforce this agreement without a court order. There is a box that says ' The Consumer Credit Act 1974 lays down certain requirements for your protection which should have been complied with when this agreement was made. If they were not we cannot enforce this agreement without a court order.

Were all the requirements complied with? If so, this is irrelevant.

Capital aren't known as the most customer focused 'bank' so it seems that their offer of the option to voluntarily return the car is reasonable - but be aware you might be faced with a big bill and no car.

Glasgowkiss84

Benji wrote: »

Hi, the CCA only gives you 14 days to return items. Due to depreciation etc on cars, the car could conceivably be worth less now than you actually owe - if you were the credit company you wouldn't want to write off (say) £2500 of debt in exchange for a car that's now only worth £1500.


Were all the requirements complied with? If so, this is irrelevant.

Capital aren't known as the most customer focused 'bank' so it seems that their offer of the option to voluntarily return the car is reasonable - but be aware you might be faced with a big bill and no car.

So in this case, the 50% rule does not apply? I don't know if they complied with the CCA? Maybe this is stupidity on our part? I don't know the CCA inside out, so don't know if they complied.

We would rather try and sell than hand back to them - handing it back opens me up to whatever they feel like charging us.

Someone else has a very similar agreement to me. here is a link to the thread which has his agreement.
http://www.consumeractiongroup.co.uk/forum/general-debt-issues/219601-capital-bank-car-loan.html

http://cdr.fastmail.fm/cca/pg3.JPG
http://cdr.fastmail.fm/cca/pg4.JPG
http://cdr.fastmail.fm/cca/pg5.JPG

First link has the first two pages with amounts borrowed etc.. the other three links are the terms and conditions.

Just to confirm this is not my agreement but my agreement is the same as this one. I am unable to scan mine hence this example.

Thanks