VT on HP but still left with a debt.

caprichos

Hi,

I need some advice.

Three years ago I did an early VT on a HP but had not paid half. this debt has now been sold to a debt collectors.

I have a lot of money worries , my husband is disabled and is not working. I want to know what my options are and If this falls under the CCA?

Just thinking if it does to write to them asking for CCA and then if they produce it see what options I have to come up to an arrangement?

Many thanks!

[Deleted User]

Speak to the debt charity "step change" if you have a lot of money problems

jonesMUFCforever

HP lending does come under the CCA but IMO here you are barking up the wrong tree.
Your own copy of the HP agreement will be your CCA - the debt is there because of the deficit in selling the car (probably at auction) at a lower price than the loan outstanding.

Take the previous poster's advice and get in touch with a debt charity.
They will help you arrange a repayment plan (even if it is only a £1 a month) until your finances improve or they write it off.

motorguy

caprichos wrote: »

Hi,

I need some advice.

Three years ago I did an early VT on a HP but had not paid half. this debt has now been sold to a debt collectors.

I have a lot of money worries , my husband is disabled and is not working. I want to know what my options are and If this falls under the CCA?

Just thinking if it does to write to them asking for CCA and then if they produce it see what options I have to come up to an arrangement?

Many thanks!

Yes, a VT allows you to hand back a car with the guarantee that you cannot be pursued for more than the difference between what you have paid in total, and 50% of the total agreement cost.

If you've severe money worries then, as already suggested, speak to step change or payplan.

nomoneytoday

Are you sure it was a VT?
If you hadn't paid half, then it's possibly a VS (voluntary surrender rather than termination)

National_Debtline

Hi caprichos,


Motorguy has given some great advice about liability. Just to add to that, I would highlight that when you Voluntarily Terminate a HP agreement, it has to be done in writing. If you did that then you would be liable for 50% of the agreement, minus the money paid to date (as already said) but plus any excessive wear and tear to the vehicle.


If it wasn't done in writing, unfortunately, the lender may claim they terminated the agreement, meaning you would be liable for 100% of the agreement, minus the money paid to date, and minus the resale of the car at auction.


The shortfall of money owed becomes a credit debt and can be repaid at a rate you can afford. Don't worry about debt collectors - they are not a bailiff, they cannot enter your home or repossess anything. If you are unable to afford repayments to your debts then you may be able to look at a Debt Relief Order (DRO) to get your debts written off, depending on your circumstances. You did mention that you have a lot of money worries, so I think speaking to a free charity would also be a good idea. Good luck,


Laura
@natdebtline