HPI early settlement - Moneybarn

windtech

Hi,

I have had a car on HPI through a company called Moneybarn.

I am in the process of buying a house and would need to clear this account to be able to get the required funds for the mortgage.

When I first enquired about settling my account on 6th February my settlement balance was £7635, since then I have paid 2 monthly payments of £255 and when I called today to get a updated settlement figure it was only £5 less at £7630. This cant be right can it? I have paid £510 but only £5 has come off my settlement balance.

Does anybody know if I have good ground to appeal the balance of this? the customer service assistant seemed to think it was totally normal.

Thanks

GazNicki

Are you looking to Voluntarily Terminate (VT) the agreement?

In order to do this you need to have paid back 50% of the agreement (including interest and fees) to the finance company, and have taken reasonable care of the goods.

Your HP agreement should have a section on there that shows your right to terminate this agreement, and give a value of that.

Once you have hit that point, you can then VT. You need to work out how much you have paid in so far.

Also, you need to specifically state you wish to VT too.

If you are looking at paying the balance off in full, and have made two payments of £255 but only reduced your balance by £5, this may be correct relative to the APR of the agreement.

windtech

Hi,

Thanks for your reply.

I am wanting to pay the balance off in full, I am paying 29.9% apr.

I didnt know about VT, does that have a negative effect on your credit rating?

Thanks again

[Deleted User]

windtech wrote: »

When I first enquired about settling my account on 6th February my settlement balance was £7635, since then I have paid 2 monthly payments of £255 and when I called today to get a updated settlement figure it was only £5 less at £7630. This cant be right can it? I have paid £510 but only £5 has come off my settlement balance.

Sounds about right. Interest is a lot higher in the early stages as the balance is bigger. Add on two months interest for early settlement. and the figure looks ok.

GazNicki

windtech wrote: »

Hi,

Thanks for your reply.

I am wanting to pay the balance off in full, I am paying 29.9% apr.

I didnt know about VT, does that have a negative effect on your credit rating?

Thanks again

VT doesn't have a negative affect on a credit report. You need to check your agreement for the VT balance. It's a piece of legislation designed to help consumers, but we shouldn't abuse it. If you can afford to pay off the finance, then you should.

VT means you would have to return the vehicle.