Voluntary Termination after death

Keithe46

Good morning folks,

My father in law passed away last week and unfortunately had a vehicle on PCP. Having assessed his situation I found that he had repaid over 50% of the monies owed. I noted that his documentation that he was eligible for Voluntary Termination due to the monies paid/owed.

I made contact with the finance company requesting voluntary termination as per the VT guide. They responded advising that VT was not an option as the customer was now deceased.

I find this unbelievable having researched the topic online however have been unable to find any definitive advice. Can anyone provide any clarity or previous experience in a situation such as this?

Any help/advice would be appreciated.

Thanks

Keith

DrEskimo

Very sorry to hear of your loss.

Would this not be a debt that would be settled as part of his estate?
Alternatively you could look to just sell it on to WBAC or a local garage/dealer.
Do you know the settlement figure for the finance today?
I would start by putting the registration/mileage into WBAC and see what the value is relative to the settlement, and it may be easier to simply sell the car and settle the finance that way.

I don't know what the implications are for settling the finance when the person is deceased though.

Grumpy_chap

Sorry to hear of your loss.
I suspect that the response that VT is not permitted after death s because the contract will have a specific clause and procedures to cover this scenario.
Do you have access to the agreement to check?

The_Rainmaker

You need to get hold of their T&Cs and do some digging.  Not sure I would take their answer at face value.

Keithe46

Thanks for the responses. I have had a look at the agreement which was signed and sent electronically and there is no mention of what happens should death occur. I have researched S.99 Consumer Credit Act and it isn’t clear either.

DUTR

Keithe46 said:

Thanks for the responses. I have had a look at the agreement which was signed and sent electronically and there is no mention of what happens should death occur. I have researched S.99 Consumer Credit Act and it isn’t clear either.

Line #2 of post #2 is the route you (the person/s dealing with the paperwork) perhaps should be following.

The_Rainmaker

DUTR said:

Keithe46 said:

Thanks for the responses. I have had a look at the agreement which was signed and sent electronically and there is no mention of what happens should death occur. I have researched S.99 Consumer Credit Act and it isn’t clear either.

Line #2 of post #2 is the route you (the person/s dealing with the paperwork) perhaps should be following.

That's a good point, who is the executor(s)?  You can maybe give a nudge on preferred outcome for the beneficiaries but at the end of the day it will the their decision.

neilmcl

The executor of the estate will now be responsible with managing any outstanding debts/finance agreements. The executor has the legal right to enact a voluntary agreement of the finance, it's not at the discretion of the finance provider.

You need to get the executor to speak to the finance company and either negotiate a settlement fee, they may accept a lower offer if they can convince the provider there isn't sufficient funds in the estate to pay off the full settlement figure or enact the VT.

Keithe46

Thanks again for the replies folks.

my mother in law is the executor however I had been dealing with the finance company as she has no idea regarding these things. I had sent them a copy of the death certificate and they have been happy to deal thus far. 

I just wanted to confirm whether in fact there was any truth that VT was no longer an option due to the death of the initial customer.

neilmcl

Keithe46 said:

Thanks again for the replies folks.

my mother in law is the executor however I had been dealing with the finance company as she has no idea regarding these things. I had sent them a copy of the death certificate and they have been happy to deal thus far. 

I just wanted to confirm whether in fact there was any truth that VT was no longer an option due to the death of the initial customer.

No, it's not true, the executor still has the option.

Keithe46

neilmcl said:

Keithe46 said:

Thanks again for the replies folks.

my mother in law is the executor however I had been dealing with the finance company as she has no idea regarding these things. I had sent them a copy of the death certificate and they have been happy to deal thus far. 

I just wanted to confirm whether in fact there was any truth that VT was no longer an option due to the death of the initial customer.

No, it's not true, the executor still has the option.

Neil that’s brilliant, just wanted some clarity. Kind regards