HP car loan

stu12345_2

Andyjflet said:

Slight mistake here, you have to identify you are exercising your rights to VT as this is a different type of end to an agreement, what you have said is, I'm giving the car back.... sell it and bill me for the rest.  

yes Andy, but the point is the finance company have not executed the most favourable and best method if returning the car. as it had he had reached the 50% mark, the finance company should have used that method 

Andyjflet

stu12345_2 said:

Andyjflet said:

Slight mistake here, you have to identify you are exercising your rights to VT as this is a different type of end to an agreement, what you have said is, I'm giving the car back.... sell it and bill me for the rest.  

yes Andy, but the point is the finance company have not executed the most favourable and best method if returning the car. as it had he had reached the 50% mark, the finance company should have used that method 

Morally yes, but if you don't ask for VT then they aren't going to offer it, to lose all the forward interest on the deal they initially set up as well as the process of setting the debit back for the dealer that set the deal up, usually 3/6 months debit back period for most dealers using non branded finance. 

stu12345_2

true, but I think the op has a case of dispute, cos of misguided administration on the finance company taking the most disadvantaged route to the debtor

HunterG

Hi
I bought a car on 18th January, paid cash. On picking it up and driving back from Yorkshire to Scotland it was clear the car was pulling to one side.
I notified the dealer on the way home and was advised to take the car to a local Peugeot branch.
They couldn't see the car to check it until 6th February with repairs not booked in until 7th March.
Suffice to say, after three "repairs" the car still has issues and I started the process to reject on 3rd April.
The company took a full 2 weeks to even acknowledge my complaint and, by coincidence, I was only given a response after contacting CAB and advising that I would be referring to Trading Standards.
More time passed for the manager to "investigate" and I was told that the technicians could find no fault with my car. I was told that I would need to provide an independent report.
Again, more time passed where I asked if this cost would be refunded and if I could use my own mechanic, and continued to have my emails ignored.
I then contacted their dispute resolution service, and again, by coincidence, I received 2 emails and a telephone call to say I'd need to use AA or RAC.
The report was completed on Monday and identified various serious concerns. As soon as this was submitted it was agreed that I could have a refund.
Bear in mind, I am now 4 months post purchase. I have mobility issues and need my car for even short journeys. The mileage on the car is around 4000 more than when it was purchased.
The manager said he will refund, but will be deducting the mileage I've used at 25p per mile. After emailing back to point out that I felt it was excessive, he offered 20p per mile.
I have emailed back again and pointed out that the mileage on the car is largely due to delays in dealing with the issue and the fact that I gave more than one opportunity to fix the problems. I am again being ignored.
Anyway- I have said that I'd be wiling to pay mileage at the point of the first failed repair at 20p per mile (around £220) is this reasonable or will I need to accept the £990 deduction?

Wonka_2

Practically speaking you've still been using the car and 4k miles is a fairly hefty mileage for something faulty (but understand why you had to continue using it). Could it have been resolved more quickly if you'd returned it to the supplying dealer (accepting the distances involved) rather then the delay with your local garage ?

25ppm is a fairly standard charge but good that they've reduced it to 20ppm 

Beyond that it's a negotiation - what other leverage do you have not to pay the £990 ? Did you finance the car in any way ? Was it part of a manufacturers Approved Used scheme ?

HunterG

Thanks for this. My main issue was the the reason I had the car so long was that their complaints process was made very difficult and lack of responses along with delays in repairs added a good block of time therefore usage. 
I had to accept the £990

HunterG

I am hoping someone can help here. 
I have made a very expensive error in that I have ended an HP agreement by Voluntary Surrender instead of Voluntary Termination, I have gone through the financial ombudsman and the Investigator advised that the company provided me with the correct information and that I have made the mistake, therefore nothing I can do.
The HP agreement was made on a car loan, I paid 35/60 payments and I am now due to pay over £1400 for a car that originally cost £8500 because the rebate calculated on the remaining debt was £467.30 due to interest costs being preloaded.
Is there anything at all that I can do to have this amount reduced, or do I just need to suck it up and make the payment? 

HunterG

The ombudsman investigation has advised that the company have acted fairly, they sent two letters to advise VT and VS outcomes, when I phoned I agreed that I understood and therefore it has been deemed to be my mistake and I have no recourse for complaint.
The ombudsman was supplied with my telephone call recording, but this was not given to me as part of my subject Access Request.
I am now liable for £1400 for a car I no longer owned, after paying £2000 to to make it roadworthy in order to terminate the agreement. 
I feel like the company have acted in a manner set to confuse by sending letters which mysteriously arrive days apart, and then ask if you understand when clearly you don't- why would anyone agree to pay for something they no longer own when they have an option to end the agreement without further payment.

sourcrates

You have three threads running in this forum, all basically on the same subject.

This would be better off on the loans board.

I will ask for it to be moved.

HunterG

stu12345_2 said:

you could post your problem on legal beagles forum.

from info I've read you simply had to state you wish to end your agreement, and the finance company would already know that you had reached the 50% mark and  process you with a voluntary termination,  as it was the primary position,not a surrender

as you had reached 50%, had an MOT and was in reasonable condition.

imo the finance company have not followed the  correct and best option for you as the primary  main position for you would be termination, not surrender.



https://www.car.co.uk/car-finance/faqs/cancelling-finance/how-to-get-out-of-a-car-finance-agreement

surrender should be used when you're in arrears with monthly payments and haven't reached the 50% mark.


the provisions of section 90 of the consumer credit act lays down the rules you have concerning your rights regarding ownership of the car and your rights of how you can end your agreement and what steps the creditor is allowed to repossess your car.

I think that is your main ammo for complaint, even if they say you filled in a form for surrender. cos termination would and is the main default primary position for you and your situation and should have been used by the finance company.

getting you to choose surrender is faulty administration on their part 

there was no need for the finance company to follow that route. or tell you that is the one you should use, cos you didn't fit that criteria, you fitted termination instead( which would have been the primary position for you anyway)

if the  complaint response you get saying you ticked the box for a surrender, then I would do another complaint reply stating, my primary position was termination and you didn't apply that when you should have to me.

in simple terms its like getting sold at the booking office of a bus or train station for two single fares, instead of a day return, you said yes, when the clerk says are you coming back today.  I was an ex bus driver and we were not allowed to sell a passenger the most expensive  wrong method, the default position would be a day return for someone returning the same day.

definitely grounds for complaint. you have the financial ombudsman if all else fails to complain too.

cos you now have a default marker on your credit file as well as the outstanding debt shortfall.

it would be good if one of the mods could reply here to your post 

Good news for me-
After a long process, the ombudsman has provisionally found in my favour! 
The Investigator had agreed with the finance company but I pushed forward and the ombudsman accepted my arguments. 
The subject Access Request I made failed to provide me with call recordings, when I later asked for these they were sent by post on a password protected CD- even that bit made difficult!
Not outdone we managed to source a reader and lo and behold, the call handler effectively lead me to surrender as I couldn't remember the word I needed, I said that I wanted to "voluntary....... what's the word?"

Anyway, I just wanted to thank you for your support in this, and to encourage others "DON'T GIVE UP UNTIL YOU HAVE EXHAUSTED THE PROCESS"