Voluntary Termination Advice Please

System

DD1A wrote: »

Back to the subject I read this on another post here,

"A voluntary termination is your right under the Consumer Credit Act, when you take out a hire purchase agreement on a car.

You can VT any time you like, however the finance company can only pursue you for a maximum of 50% of the total transaction value (subject to fair wear and tear)

Its a right, under law, designed to protect consumers, and terminates the contract.

Because the contract is terminated, conditions within it cant be enforced.

There is at least one case which can be found on the internet where it went to the FOS and the Ombudsman agreed with the finance company that the mileage penalty was due. The reasoning being that by exceeding the annual mileage in the agreement the owner had not taken care of the vehicle as required in the contract.

So you can refuse to pay the mileage penalty but there is no guarantee you're going to win and if you lose a claim the other party can claim for costs which may make the mileage penalty look like chump change.

Nearlyold

Tarambor wrote: »

There is at least one case which can be found on the internet where it went to the FOS and the Ombudsman agreed with the finance company that the mileage penalty was due. The reasoning being that by exceeding the annual mileage in the agreement the owner had not taken care of the vehicle as required in the contract.

So you can refuse to pay the mileage penalty but there is no guarantee you're going to win and if you lose a claim the other party can claim for costs which may make the mileage penalty look like chump change.

Typical FOS responses here :- https://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=37655

https://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=66776