HP voluntary termination advice

leahjessica

Hi everyone

Please could I have some advice concerning a voluntary termination of hp on my car. I have paid over half and am entitled to now return the goods and have notified the finance company in writing using registered delivery and can confirm they have received this.

I just want to know the following:

Now I have notified them, if they drag their feet with the process, do I still have to keep paying my monthly repayments? The car is parked on my drive not being used.

The finance company is some 200 miles away, do I have to return the car to them personally or should they arrange collection at no cost to me?

Thanks for any advice.

JG:)

[Deleted User]

going off what happened when my FIL`s car was returned in simlar circ.he returned it to an auction house 5 miles away and the whole process took a couple of weeks

System

Hi leahjessica

I returned a car under voluntary termination last year. I had similar concerns about whether the finance company would try and drag out the process in order to squeeze another payment out of me. As it turned out they didn't and it was all sorted fairly quickly. To cover myself I phoned them once I knew the letter had been received and confirmed with them that I may cancel the direct debit and cease payments, I made a note of the time, date and agent's name.

With regard to the return of the vehicle, National Debtline say this:

Some creditors try to charge you for collecting the goods after the agreement has been terminated. It appears that this is not allowed under the Consumer Credit Act. If asked to pay an additional charge, you can complain to your trading standards department or phone us for advice.

Full factsheet here: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_how_to_deal_with_hire_purchase_debt

In my case the finance company tried to charge me £130, I declined and said I'd pay £30 max (prior to reading the above ND factsheet), to which they agreed. However I've never been billed for it and have written confirmation that the VT is complete (which I would recommend that you request too) so that's that!

Hope this helps, best of luck.

UNDERGROUND

inmypocketnottheirs

I did a VT. All done within a couple of weeks. Car collected without charge.