First Response Finance Voluntary Termination

chris061084
chris061084 Posts: 3 Newbie
in Loans
Hi, has anyone here delt with First Response finance in the past? I am over 3 years into a 4 year finance deal but the car is worth a lot less than what I have to pay in the next 10 months. So I decided to give the car back and followed my voluntary termination procedure, however they are now saying that unless the car is put through auction without any mechanical problems I wont endure any further payments? nowhere does it state this on my pcp contract? I just need some advise on where I stand legally?

Thanks

Chris.

Comments

  • Nearlyold
    Nearlyold Posts: 2,288 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    edited 13 May 2019 at 4:01PM
    You say it was a PCP - when you handed the car back (VT'd) had you paid at least 50% of the Total Amount Payable?

    What condition was the car in when you handed it back, did it meet the BVRLA guidelines, were there any mechanical issues that necessitated repairs, had it been regularly serviced etc. Were you within the Pro- rata mileage limits?
  • MEM62
    MEM62 Posts: 4,749 Forumite
    First Anniversary Name Dropper First Post
    chris061084 wrote: »
    I just need some advise on where I stand legally?

    You should be able to advise yourself. The terms and conditions will be laid out in the agreement you signed.
  • chris061084
    chris061084 Posts: 3 Newbie
    Sorry its a hire purchase contract. Yes I am well over 80% of the total amount. The car is in great condition with 12 months mot and has been serviced regularly.
  • chris061084
    chris061084 Posts: 3 Newbie
    MEM62 wrote: »
    You should be able to advise yourself. The terms and conditions will be laid out in the agreement you signed.

    That is why I am asking the question "where do I stand legally" because none of what they have told me is written in the agreement I signed. It states in my agreement that "If over half the total amount is paid and the vehicle is mechanically sound then no further payments are needed"
  • System
    System Posts: 178,093 Community Admin
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    When you say you've paid over half the amount are you talking about the term of the loan or the amount actually borrowed including any balloon payment?
  • MEM62
    MEM62 Posts: 4,749 Forumite
    First Anniversary Name Dropper First Post
    chris061084 wrote: »
    That is why I am asking the question "where do I stand legally" because none of what they have told me is written in the agreement I signed. It states in my agreement that "If over half the total amount is paid and the vehicle is mechanically sound then no further payments are needed"

    Then that is your answer. They cannot start adding conditions at this stage. They can only enforce what is in the contract and you are only liable as per the terms of the contract.
  • fatbelly
    fatbelly Posts: 20,486 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    Voluntary termination is a legal right to end a hire-purchase agreement early, subject to certain conditions. This right is set out in Section 99 of the Consumer Credit Act 1974 and it is a statutory right which cannot by excluded or restricted by any terms or conditions set out in the hire-purchase agreement.

    https://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues/77730-a-guide-to-voluntary-termination-your-rights?77612-How-to-Voluntary-Terminate-a-HP-Agreement-*UPDATED*=
  • Pudge2016
    Pudge2016 Posts: 7 Forumite
    I’m at month 34 of a 48 payment with First Response and I’m going to write to them about a VT in the next coming days I owe about £2500 and the cars worth about £1500 max good condition after all it’s 12years old and average miles at 10k a year mechanically sound can they throw any charges back to me at all before i commence?

    Thanks
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