Hire purchase The Car Finance company - F&F?

[gideonssword]

I took a vehicle on hire purchase from the Car Finance company in August 2014, over a period of 36 months with an APR of 49.9%

 

I have paid 19 payments never missing any.

 

I hope in 5 months time at the 24 month stage to have saved enough to settle early in full and final settlement.

 

I believe that by law the interest is capped on what the Lender can charge in the event of early settlement.

 

Can someone please explain how this works out?

[Conniff]

No, don't do a full and final settlement with them, they will rip you off.

There is no need for any final settlement figure.

 

After you have paid half of the agreed payments,

you can just hand the car back to them (Voluntary termination),

and they have to accept it by law without any further payments being made by you.

 

As you have already made over 50% of the payments,

you write to them saying you give them 30 days notice that you wish to exercise your right to terminate the agreement

and want details of when the car will be collected.

 

Do it by recorded delivery letter as they don't like VT and will more than likely try to drag it out so they get a few more payments.

 

Come back here if you don't understand anything.

Edited February 19, 2016 by Conniff

[gideonssword]

Thank you.

 

VT is something I had considered has the car will be 9 years old this year and if I let the HP payments go the distance I wouldn't get much if I part ex the car.

 

I'm just worried that they will try to pursue me for extra money afterwards.

[Conniff]

They can't pursue for more money, it is your right, it is the law. The only thing they might be able to charge for is if you haven't looked after the car and it is in a damaged state. They cannot, however, charge for fair wear and tear.

[theoldrouge]

Should you decide to proceed with a VT send them the following letter by signed for delivery

 

Bear in mind your loss of the car and all payments made to date

 

You MUST vt under s99/100 cca 1974. The car only has to be in a condition commensurate with its age

 

you can VTicon AT ANYTIME, but MUST do so under s99/100cca1974

 

You must vt under s99/100 cca1974. do not sign any of their forms, or agree to pay any charges. The car has just to be in reasonable condition for its age. As you have paid in excess of 50% there will be nothing to pay bar any arrears.Send them the following letter, they MUST action your request, you should endeavour to be present at the vehicle inspection---

 

VOLUNTARY TERMINATION OF AGREEMENT UNDER S99/100 CCA 1974

 

Account No: (xxxxxxx)

Dear Sir,

I am writing to notify you that I am exercising my right to terminate the above Agreement under Section 99 of the consumer credit act1974. You will understand that the aforementioned section permits the debtor to terminate the agreement at any time before the last payment is due. There is no restriction regarding the exercising this statutory right, particularly none in respect of any perceived arrears or monies due on termination

 

I understand that I shall be liable to you for the amount calculated under the formula in Section 100 of the Consumer Credit Act 1974. As I have paid more than the amount calculated under the formula in Section 100 the amount due is Zero

 

The above agreement will be terminated 14 days from the date of this notice.

(unless you pay less than £1500 per year where you must give one months notice)

Please send me details of how the vehicle can be returned to you.

 

You will be aware that statute prevents you from levying a charge for the recovery of this vehicle; guidelines also state that if you require me to deliver this vehicle it must be no more than a short (reasonable distance) from my registered address.

Please confirm receipt of this request in writing within 7 days of receipt.-Yours etc...

 

attend vehicle condition report, take dated photos from every angle

 

a short reasonable distance would be the distance you travelled to buy the car

[Conniff]

I agree fully with that and just to emphasis two very important points made, do not sign anything and take pictures of the car.

 

When the man comes to collect, read the collection sheet as he will have noted any bad point on there. If they are not how the car actually is, you will have pics to back you up.

 

So read all before you sign.

[gideonssword]

Thank you both for your input it is most welcome and deeply appreciated.