Voluntary surrender on PCP

indianprincess81

Im new to this forum so please bear with me and please help if possible.
My partner has a PCP agreement with Mercedes. He bought the car from a MercDirect back in December 2007.
I dont have the full details with me as yet but wil update if needed by tomorrow.
So he bought the car and paid £500 deposit. I think the car was bought for £16000 and he made regular payments of £336 per month. Unfort we have had a few finanical problems recently and he feel behind in his payments. Hes in arrears of £840, he was called by Mercedes and told that he would be contacted by a debt collectors Anglia and he could pay the arrears with them and Merc will continue to take the normal direct debits as usual. So he was contacted at the end of December with a letter posted by hand that his mum forgot to give him till today :mad:!! Hes able to pay the remainder balance over 2 months.
So heres the dilema, because he didnt contact the debt collector he has now been asked to fill out a voluntary surrender form. They have also did not take the direct debit this month. We have about 10 months left on PCP and have paid well over the 50% value.
Also they state we owe 11k! Now we wanted out after the last PCP payment, we didnt want to keep the car. Plus its only valued for £7000.
I have no idea what to do. We need to have a few repairs done...amounts to about a 1K. And we dont want the car to be taken and charged Mercedes body work charges!
Please help, as I have no idea what to do.

standupguy

The thing to do here is know you/your partners rights and do not be influenced or bullied by what the debt collector has to say.

They want to get a big commission from the Finance company for getting you to sign a vs and getting hold of your car and giving it to the finance company to sell

You are in a strong position as you have clearly paid over one third of the hp price and therefore the car cannot be officially repossessed without a court order - that is why they are trying to get you to give them the car by signing a voluntary surrender.

If you sign the vs and give them the car it will be sold at auction and they will chase you for the balance and charges/fees etc on the account.

Has you partner recieved a notice of default, if so, what was the expiry date? has your partner received a notification of termination of the agreement?

If the agreement has not been terminated he needs to quickly contact the finance company, agree an immediate payment by card and make an arrangement that he will keep to pay the arears as quickly as he can to get the account back up to date and re-instate the DD.

nomoneytoday

(IMHO) I would look to bring the payments up to date and then VT if possible

PNPSUKNET

Its PCP, it does not have the same VT rights

nomoneytoday

PNPSUKNET wrote: »

Its PCP, it does not have the same VT rights

AFAIK your rights are the same, but the 1/2 and 1/3 points change significantly. All will be revealed in the Key Facts Doc