PCP Voluntary Termination Paperwork Help Please
Comments
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They said that they couldn't progress our case because we hadn't signed their forms.
That's entirely up to them; you have fulfilled your legal obligations, you do not have to do anything further except take reasonable steps so that they can get the car back (insisting you sign even more paperwork before they will collect is not reasonable.)When I quoted the law they said it wasn't the law
The law:
Consumer Credit Act 1974 - Section 99
(1) At any time before the final payment ... the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement.
Consumer Credit Act 1974 - Section 100
(1)Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99 the debtor shall be liable ... to pay to the creditor the amount by which one-half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before the termination.
(4)If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have effect accordingly.
(5)Where the debtor, on the termination of the agreement, wrongfully retains possession of goods to which the agreement relates, then, in any action brought by the creditor to recover possession of the goods from the debtor, the court, unless it is satisfied that having regard to the circumstances it would not be just to do so, shall order the goods to be delivered to the creditor without giving the debtor an option to pay the value of the goods.
A layman's summary of your only obligations:
1) Give notice
2) Pay at least 50% of the original amount due
3) Take reasonable care of the vehicle
4) Allow them to have the vehicle back
That's it! That is all you have to do, they can ask you to do lots of other things but the law says only those four things so as long as you abide by all those terms your agreement with the finance company is at an end.They said that other people in this situation have eventually buckled and signed.
Lots of people will not be aware of their legal rights.Is this a case of who can dig their heels in deepest and longest.
Do we continue to refuse to sign their forms?
Also, is it wise to cancel our direct debit so they can't take further payments?
Yes, yes and yes.
As neilmcl says, simply remind them the agreement has ended (or will on such and such a date depending on what notice you gave), the car is no longer your concern, you will be cancelling the insurance and please can they collect it at their earliest convenience.
Personally I wouldn't bother calling them again; use either email or a written letter so that there is a paper trail. Do not be taken in, they do know the law and they do know that they cannot force you to sign anything else and they cannot charge you any other fees; it is a game to them as anything (even £100) they can rip you off for is pure profit for them.Every generation blames the one before...
Mike + The Mechanics - The Living Years0 -
@neilmcl and @MobileSaver, thank you so much for these answers/ammunition. They're emailing the documents to us so I'll reply to them with this knowledge/knock-out blow.
I'll let you know how it goes.Building my kids' savings from day one. Education is key to financial control.
Save money using my referral codes > https://www.oyal.co.uk/p/7c78e51b5e/0 -
Hi all
I called Barclays finance to activate my voluntary termination. I have been told of a 109 pounds to be paid to be eligible which is fair enough. they are going to send some paperwork for me to sign. And also they said they will be a collection charge of £150 or delivery charge of £84 if I decide to drop the car for them.
the car has minor scratches around 5-6 in all and few on all alloys wheels and everything else is in good condition including the interior.
firstly, do I need to sign the paperwork?
secondly, do I have to pay for collection/delivery charges?
thirdly, they are saying not to cancel my direct debit as I am liable to pay until the car is sold.
And fourthly, when is the liability of the car be no longer mine?
any advice will be helpful.
Regards
Niv0 -
I forgot to mention the car is 7 years old within the contracted 10 000 a year mileage.0
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I'll answer this here rather than via the PM you sent me. Bear in mind I'm not a legal expert and the following is purely my opinion based on my own research.Hi all
I called Barclays finance to activate my voluntary termination. I have been told of a 109 pounds to be paid to be eligible which is fair enough. they are going to send some paperwork for me to sign. And also they said they will be a collection charge of £150 or delivery charge of £84 if I decide to drop the car for them.
the car has minor scratches around 5-6 in all and few on all alloys wheels and everything else is in good condition including the interior.
firstly, do I need to sign the paperwork?
secondly, do I have to pay for collection/delivery charges?
thirdly, they are saying not to cancel my direct debit as I am liable to pay until the car is sold.
And fourthly, when is the liability of the car be no longer mine?
any advice will be helpful.
Regards
Niv
firstly, do I need to sign the paperwork No
secondly, do I have to pay for collection/delivery charges? No, The CCA states that once you have invoked your right to VT the lender cannot impose further liability, which includes collection charges
thirdly, they are saying not to cancel my direct debit as I am liable to pay until the car is sold - Are you sure this is what they said, you liability ends on termination of the agreement. If you paid all you need to then go ahead and cancel the DD, although be aware they can charge you for any damage outside of the standard fair wear & tear.
And fourthly, when is the liability of the car be no longer mine? Your liability ends on termination of the agreement.
As already posted, it is advisable to have a look on the following http://www.legalbeagles.info/forums/showthread.php?77612-A-guide-to-voluntary-termination-Your-rights0 -
Wanted to push this thread up.... Am about to end an agreement with Barclays Partner Finance (or BPF!) and in need of some advice.
My agreement, which I've done through a 3rd-party (Zuto) is headed "conditional sale agreement" regulated by the CCA 1974. I'd therefore assume it means that the t&c's are all subjected to the CCA criteria.
As such, I'm entitled to end the agreement with paying the completion fee, which I've committed to do as I signed the agreement, and returning the vehicle.
My questions are as follows:-
1. BPF keeps quoting VT - is that correct? the agreement has reached its contractual term, and as per the t&c's I have 2 options which are my choice - keep and pay the final payment, or return. That means it is not "voluntary terminated" - right? or am I being too picky?!
2. Collection - they're asking for £150 which seem reasonable. is it?
3. I get that I don't have to sign their docs, but can provide my own as per the template. What about their vehicle checklist? is there any problem with filling that in? it's basic information of the vehicle and a confirmation of delivery once done.
Thanks!0 -
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"conditional sale agreement" regulated by the CCA 1974. ... as per the t&c's I have 2 options which are my choice - keep and pay the final payment
Conditional Sale Agreement is another name for HP (Hire Purchase.)
I am confused though as my understanding of HP was that the car would be yours at the end of the term whereas with PCP you would be offered the choice of returning or paying the final balloon payment to keep the car. You seem to have a HP agreement with PCP terms so perhaps someone more knowledgeable than me can shed light on this.1. BPF keeps quoting VT - is that correct? the agreement has reached its contractual term, ... That means it is not "voluntary terminated" right?
You are correct. VT is a statutory right that you can invoke meaning you can terminate the agreement, return the car in reasonable condition and have no further obligation or have to pay any fees to anyone as long as you pay or have paid at least 50% of the initial amount due. You have not said you have invoked this so unsure why BPF keep quoting it.2. Collection - they're asking for £150 which seem reasonable. is it?
3. I get that I don't have to sign their docs, ... What about their vehicle checklist?
If you have not invoked VT then you have no choice but to abide by whatever T&Cs you agreed to when you signed up. So whether £150 is reasonable or not you have to pay it and you similarly have to complete and sign whatever paperwork you agreed to and pay for whatever damage/wear/mileage they consider appropriate.
What was your exact wording when you contacted them regarding terminating the contract? Perhaps they think you are VT-ing?Every generation blames the one before...
Mike + The Mechanics - The Living Years0 -
A PCP is just another form of Hire Purchase agreement, in fact most PCP agreements will be headed either "Hire Purchase" or "Conditional Sale" agreements.MobileSaver wrote: »Conditional Sale Agreement is another name for HP (Hire Purchase.)
I am confused though as my understanding of HP was that the car would be yours at the end of the term whereas with PCP you would be offered the choice of returning or paying the final balloon payment to keep the car. You seem to have a HP agreement with PCP terms so perhaps someone more knowledgeable than me can shed light on this.0 -
MobileSaver wrote: »Conditional Sale Agreement is another name for HP (Hire Purchase.)
I am confused though as my understanding of HP was that the car would be yours at the end of the term whereas with PCP you would be offered the choice of returning or paying the final balloon payment to keep the car. You seem to have a HP agreement with PCP terms so perhaps someone more knowledgeable than me can shed light on this.
You are correct. VT is a statutory right that you can invoke meaning you can terminate the agreement, return the car in reasonable condition and have no further obligation or have to pay any fees to anyone as long as you pay or have paid at least 50% of the initial amount due. You have not said you have invoked this so unsure why BPF keep quoting it.
If you have not invoked VT then you have no choice but to abide by whatever T&Cs you agreed to when you signed up. So whether £150 is reasonable or not you have to pay it and you similarly have to complete and sign whatever paperwork you agreed to and pay for whatever damage/wear/mileage they consider appropriate.
What was your exact wording when you contacted them regarding terminating the contract? Perhaps they think you are VT-ing?
Thank you MobileSaver. When I called them it was to say that the agreement is coming to an end, and I have chosen to return the vehicle to them as per the t&c's, which I'd like the details for. As soon as they mentioned VT I corrected them to suggest that this is not about voluntary termination, but a natural conclusion of a time-bound agreement.
I expected the docs to mention it, which is why I posted my questions...
In terms of signing their paperwork, I agree that the vehicle basics and descriptions are okay to fill-in, but why would I sign-up to pay any damage/repair/etc?! my obligation is to keep the vehicle in "good state of repair" as per the agreement. If I've done that - which I have - is there a need to commit to anything else?0
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