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Voluntary Termination Advice
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andrec07
Posts: 2 Newbie
Hello,
I have decided to do VT on my current agreement. I phoned my creditor last week to discuss this and was advised that they will send out a VT Pack which covers everything involved in process. Being suspicious of how simple they made it sound I have been on interweb over weekend to find out exactly what is involved. I have discovered I need to send them a letter (not mentioned during phone call) stating this which I have now done however my halfway payment comes out on 30th of this month. Can I send this letter before then or do I have to wait until after midpoint of agreement?
Another area of concern is the amount of posts I read about several different papers that need to be signed. My understanding is that I only need sign a condition report? If this be the case will I be expected to pay for scratches, chips etc? The car has only done 13500 miles in two and a half years so it has not been run into ground. Does anyone have any advice on how to handle condition report so as not to end up liable for extra charges?
I have decided to do VT on my current agreement. I phoned my creditor last week to discuss this and was advised that they will send out a VT Pack which covers everything involved in process. Being suspicious of how simple they made it sound I have been on interweb over weekend to find out exactly what is involved. I have discovered I need to send them a letter (not mentioned during phone call) stating this which I have now done however my halfway payment comes out on 30th of this month. Can I send this letter before then or do I have to wait until after midpoint of agreement?
Another area of concern is the amount of posts I read about several different papers that need to be signed. My understanding is that I only need sign a condition report? If this be the case will I be expected to pay for scratches, chips etc? The car has only done 13500 miles in two and a half years so it has not been run into ground. Does anyone have any advice on how to handle condition report so as not to end up liable for extra charges?
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Comments
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Get any dents and scratches sorted before they take the car.
Have you treble checked the figures, Half way on payments/original figure not time?
I would expect a 2 1/2 year old car with 13500 miles to be pretty much as it left the showroom.Censorship Reigns Supreme in Troll City...0 -
Hi andrec07,
Welcome to MSE
There are a few things that you have raised that I believe I may be able to help with. Assuming that your car agreement is regulated under the Consumer Credit Act, and is subject to a Hire Purchase agreement, the following information may help you.
Firstly, it is your right to Voluntarily Terminate an agreement at any stage of the contract, as long as you are up to date with your payments. Therefore, you can send your voluntary termination letter before your half way payment is due, just make sure that you send it recorded delivery and keep a copy. We have a sample letter for this available on our website for this (this sample letter is for a sole agreement): - https://www.nationaldebtline.org/EW/sampleletters/sole-letters/Pages/Terminate-a-hire-purchase-agreement-(sole-name).aspx
However, if you are behind with your agreement, then you need to be more careful. You will still have the right to voluntarily terminate the agreement yourself, up until the point that a default notice expires. After that point the lender has terminated the agreement and there are different rules regarding the liability.
When you do arrange to return the vehicle (either by the lender collecting it or by you taking the car back, if it is not an unreasonable distance), they will be able to make you liable for 50% of the original agreement, minus any money paid to date, plus any excessive wear and tear. I am afraid that I am not aware of the “condition report” that you have mentioned. What I would suggest that you do is take full photographic evidence of the condition of the vehicle (interior and exterior) on the day that it is returned, and use something that proves the date, such as a newspaper on the front seat.
You may also find our factsheet about Hire Purchase useful- https://www.nationaldebtline.org/EW/factsheets/Pages/16 EW Hire purchase and conditional sale/Default.aspx
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
What about service history is this something that has to be maintained as I am not sure if this is a requirement in agreement?0
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Hi andrec07,
Just because you don’t have the service history for the car it won’t prevent you doing your voluntary termination. Please check the Terms and Conditions of the contract. If the lender requires the vehicle to be serviced every year, for example, and you cannot show this has been done, they may make you liable for the cost of them servicing the car. However, if the car is in reasonable condition, and there is no mention of servicing in the contract, then you shouldn’t have any further liability regarding servicing. I hope that helps to clarify things.
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
You need to carefully study the papers sent to you. Many firms will send you an early termination document to sign which will hold you liable for further charges - BE WARNED - this will not be a VT if you sign. You do not need to sign anything to VT just send them a letter. They can not refuse to accept the VT, any charges for damages etc are outside of the contract and are completely separate, these will not prevent your VT if they are not paid. Many finance cos try it on.0
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