Hire purchase - ending early

continualdiamond

So am terminating my agreement half way through its term, which is allowed as is under T/C's and states that as long as i have paid .... (which i have) then i can give the car back.

So sent a letter recorded signed for on 22nd Dec, it was signed for on the 23rd as checked royalmail website.

Next payment was due today so since i had already met the amount stated in my agreement that was needed to give the car back and they had a letter from me on the 23rd i cancelled the payment.

I got a phone call this morning asking why i cancelled payment, i explained why and was told they had no record of getting a letter. When i said it was signed for they asked where i sent it, told them, Nottingham as thats the address on my agreement, they then told me my account was at Lincoln and they could put a note on my file today to say i was volunteerily ending the agreement but they would still need December payment as the car wouldn't be collected until January now, but that i wouldn't need to pay Januarys payment.

Does that sound right? I have kept the exact payment back incase this did happen so i can pay Decembers

However to me because i had met the payments stated in order to give the car back and that a recorded letter was received on the 23rd i didn't think i would have to pay this months installment.

(the sum needed to give the car back was met with Nov payment, so in fact if i do have to pay Dec it is only 1 payment over)

standupguy

The agreement terminates on the date they receive your letter.

Providing your agreement is up to date on that day then there is nothing further to pay.

It seems they are trying it on to try and get another payment to help mitigate their losses or they just do not understand the consumer credit act regulations.

You are correct - you do not have to pay anymore.

If they persist tell them you will report them to the OFT regarding not following CCA regulations which would bring their suitability to hold a Consumer Credit Licence into doubt and you will also take the matter up with the Financial Ombudsman service.

Forris

standupguy wrote: »

The agreement terminates on the date they receive your letter.

Providing your agreement is up to date on that day then there is nothing further to pay.

It seems they are trying it on to try and get another payment to help mitigate their losses or they just do not understand the consumer credit act regulations.

You are correct - you do not have to pay anymore.

If they persist tell them you will report them to the OFT regarding not following CCA regulations which would bring their suitability to hold a Consumer Credit Licence into doubt and you will also take the matter up with the Financial Ombudsman service.

IMHO the OP should be liable to pay the December payment, based on your first sentence (in red, above). Also, the OP has had the use of the car for the month of December, so December's payment should be due.

continualdiamond

If the agreement terminates on the date they received my letter then that is the 23rd Dec.

The way i interpreted it was that when i last paid on the 28th Nov, that took me up to being able to use the car until the 28th Dec. Surely you do not 'back' pay and pay at the end of the month for the month you've used your car, i would of thought each payment is a payment in advance.

If i pay Dec then i can use it until the 28th Jan, which to me makes sense in what the lady on the phone said as she said Jan payment would not be needed as the car would be collected in Jan.

If that is the case with how paying works, then i am more than happy for the car to sit.

I just need to know where i stand with all of this as they're ringing me back on Thurs to take Dec payment over the phone.