Voluntary Termination of car finance

Lisa3527

No l never received a court claim. The account was not even in arrears when it was terminated. The reason was that l went into a debt management plan, the car finance was not part of it, they found out about the DMP and said it was in breach of the t&c of hire purchase agreement.

fatbelly

Lisa3527 wrote: »

No l never received a court claim. The account was not even in arrears when it was terminated. The reason was that l went into a debt management plan, the car finance was not part of it, they found out about the DMP and said it was in breach of the t&c of hire purchase agreement.

That sounds completely unreasonable. A dmp is not even a formal solution.

I have had clients in a Debt Relief Order who have continued in a HP agreement with a third party making the payments.

Have you checked the t&cs? Even if that is what it says, it may be worth challenging this, and maybe referring the whole thing to the Financial Ombudsman Service.

bigadaj

fatbelly wrote: »

That sounds completely unreasonable. A dmp is not even a formal solution.

I have had clients in a Debt Relief Order who have continued in a HP agreement with a third party making the payments.

Have you checked the t&cs? Even if that is what it says, it may be worth challenging this, and maybe referring the whole thing to the Financial Ombudsman Service.

Yes but there seem to also have been missed payments which will have breached the agreement.

In relation to why the car hasn't been repossessed then I suppose it's a risk based decision from the lender. This appears to have worked out for them as they've had another two years of payments, can repossess at any time and pursue for arrears though the probability of them recovering arrears may be slim. I'd suggest that the finance may be at a high rate as well, so a lot of potential profit for the lender over the last couple of years.

fatbelly

bigadaj wrote: »

Yes but there seem to also have been missed payments which will have breached the agreement.

In relation to why the car hasn't been repossessed then I suppose it's a risk based decision from the lender. This appears to have worked out for them as they've had another two years of payments, can repossess at any time and pursue for arrears though the probability of them recovering arrears may be slim. I'd suggest that the finance may be at a high rate as well, so a lot of potential profit for the lender over the last couple of years.

I agree that's more likely - it just wasn't the reason the OP gave for the termination.

I agree with the second bit as well. I suspect the car was not new at the start of the agreement and is now worth little, but the OP hasn't said. Though whether they can repossess at any time, without a court order, would depend on whether a third had been paid at the point of termination.

Lisa3527

There were no arrears at the time of termination. The reason was that l had debt management plan, and according to them this was in breach of the t&c.
Yes the car was second hand, 3 years when l bought it.

fatbelly

The terms & conditions don't seem to be available online. You'd need to check what you signed and ask them for a copy if you can't find them. Then make a formal complaint

https://www.moneyway.co.uk/complaints-and-resolutions

then refer the result to FOS

bigadaj

Lisa3527 wrote: »

There were no arrears at the time of termination. The reason was that l had debt management plan, and according to them this was in breach of the t&c.
Yes the car was second hand, 3 years when l bought it.

You said your account was two months behind in September, doesn't this mean you missed payments?

Lisa3527

These are current arrears, which are the reason l'm seeking voluntary termination as l pointed out in my original post.

Cornucopia

If you ask for a Settlement figure, and obtain a valuation of the vehicle e.g. from WeBuyAnyCar, you can compare the two and work out what you owe.

fatbelly

Cornucopia wrote: »

If you ask for a Settlement figure, and obtain a valuation of the vehicle e.g. from WeBuyAnyCar, you can compare the two and work out what you owe.

WBAC will not give an accurate valuation.