Hire Purchase - Voluntary termination

nic6678 · 3 June 2010 at 1:13PM

Hi

We have a Hire Purchase Agreement for our car that has been taken over by Santander. Due to a change in our personal circumstances we are considering handing the car back. We have made the 50% payments and have checked that we can return the car however Santander are telling us that if we go ahead then they will place a mark against our finance history and that we may not be able to get finance in the future. Can they do this?

I would really appreciate any advice on this matter.

regards

KingElvis · 3 June 2010 at 1:16PM

I'm no expert but I suspect they mean an internal mark on your account, do you bank with them?

If you are fully up to date and following the terms and conditions of the loan to the letter, I don't think that is true.

Good luck with them

nic6678 · 3 June 2010 at 1:30PM

Hi

Thanks for your advice. We don't bank with them however our mortgage is with them and we are both worriers.

Will consider our options carefully.

thanks again.

standupguy · 3 June 2010 at 5:30PM

They have misinformed you in the hope you will not vt - and what they have said is worthy of strong complaint as it is not correct.

You can vt under the terms of your HP agreement subject to paying half the total payable and not in arrears at time of vt. You are just exercising a clause under the agreement which you are entitled to do.

The mark they are talking about is just a vt marker on your credit file for this account - it is not a detrimental mark and must not effect your future regarding credit.

The only thing that may happen, if you want hp again, is that a future lender could ask you to repay over a shorter term or require a bigger deposit as they will not want to be in a position where you vt again in the future and they lose money.

This Finance company should be ashamed of this blatant attempt to put you off a vt. I would be asking for an apology in writing or the complaint would be taken to the Financial Ombudsman and the OFT as misinformation such as this contravenes the terms of their credit licence under the consumer credit act.

Don't let them kid you!

Bodgerhse · 28 January 2011 at 9:58PM

I have been following the advice given to nic 6678 above and am new to this so maybe should have posted a new thread. I have a nearly new Lexus that due to personal problems we want to return. The finance company say we owe them £29,000 and the dealer is only prepared to give us £24,000. We bought it new for £45,000 i can't believe it has devalued £21,000 since March 2009.

Can someone please give me some advice on whether I would qualify for a VT having only paid 10 months of a 37 month agreement

xx_michelle_xx · 28 January 2011 at 10:28PM

Hi, i'm not sure if this was the same situation, but my dad had a landrover which he wanted to return early. At the time he returned it it was worth £27,000. The company sold it at auction for less than half it's value and have been trying to make him pay the difference ever since.

Like is said, i'm not sure if it is the same situation, but it might be something worth finding out before hand.

xx

wondermutt · 25 February 2011 at 9:47PM

Hi am hoping to get some advice on here ,i have a car finance agreement and am looking into terminating it (vt 10),seeing as ive been paying for two years and have payed for the car ,but am now paying the interest on it which is stuipd ,it says on my agreement :the agreement is non cancellable under the counsmer credit act 1974 ;the timeshare act 1992 or the finanical services (distance markerting ) regulations 2004 just wondering if anyone else has had this and wondered what i can do about it and how i go about it? thanks .

holidayaholic · 25 February 2011 at 10:32PM

There are specific rules for HP cars - google for specific rules, but it's either 1/2 way through contract or 50% of the total price paid (can't remember which), before you can do a VT. Be careful if you are on a PCP deal rather than HP as the same rules do not apply.

For the OP, if you write to complain, quote "treating customers fairly" at them - something that most (reputable) financial services companies tremble at.

TakingControl · 26 February 2011 at 10:19AM

I did a volunteer termination of my HP for a car in 2005. In your credit agreement will be (in smal print) a figure you will have to have paid back to enable you to do the termination under the consumer credit act.

There won't be any marker against you as its your statuory right under the credit agreement.

Just check your agreement and it will state at which point/cost you can do this. Then write to your financial supplier with 4 weeks notice from the next DD and agree with them pick up/drop off. Make sure you quote the mileage and if you indent to drive it after the letter, add some mileage so the mileage at termination is a match. Have the car properly valeted and make picture from all sides/angles to ensure the won't come back and say you have to pay 'x' for damages/scratches

Hope this helps.

Hire Purchase - Voluntary termination

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