Voluntary Termination - Advantage Finance

[Impsfan]

Hi all,

 

I could do with a bit of advice please.

 

In November 2018 I took finance out on a car with Advantage finance.

Unfortunately our circumstances have changed dramatically in that time and we can no longer afford to run the vehicle.

 

 

We have been in contact with Payplan and they have gone through our finances and the only logical way forward for us out of a bit of a mess is to Voluntarily terminate the agreement and give the car back.

 

The figures are below, I know they can be very pushy and I have never been in this position before so wondering how I approach this? I am not great with numbers either :(

 

ANY advice on how I move forward from this would be gratefully appreciated!

 

Kirsty

 

 

[Sparxeh]

Get in touch with them and ask to Voluntary Terminate as Payplan suggested, if it's not affordable and you want to hand the vehicle back.

You will owe 50% of the total amount payable, which is outlined in the "Termination: Your Rights" section on your HP, which is the £5529.62 figure - then deduct your payments made to date.

They will likely give you this information, before you then make a decision to go ahead or not.

[dx100uk]

Section 99 of the Consumer Credit Act gives the debtor the right to terminate a hire purchase agreement, 
simply by giving written notice of termination. 
.
The right to terminate applies at any time before the final payment becomes due, unless the creditor has already terminated. 
contrary to the line taken by many finance companies, 
.
the debtor need not have paid half the total amount payable, 
and nor do they have to pay any arrears, [read below carefully regarding arrears ].
.
before exercising the right to terminate.
 .
Sections 99 and 100 set out the debtor's liability on voluntary termination. 

The sections are complex, 
but their main effect can be summarised in brief as follows. 
.
If the sum of payments made and arrears before termination exceeds 50% of the total price, 
than the debtor is only liable to pay the arrears. 
.
Otherwise, the debtor is liable to pay half the total price, less any payments already made.
 . 
so the debtor can terminate at any time if he has reached the 50 % mark but would be liable for any payments still to reach the 50 % mark,
 .  
it does not matter if the account is in arrears at the time or request to do a voluntary termination.
.
you need to specifically nail them down that this is a VT and NOT a VS Voluntary surrender].
dont get caught out!!
.
take extensive photos and video of the car inside and out 
and underneath [use a selfie stick] and in the engine compartment 
ALWAYS.
.
if they try and charge a repo fee or collection fee they cannot:
.
The only charges you must pay are the ones contained in the legislation and itemised in section 101, 
the charge mentioned is levied after the agrement is terminated and is void in any case. 
.
All it means is that no one will collect the terminated car(their car), well that is ther problem it is no longer yours , your attachment to the car has been terminated..
.
173 Contracting-out forbidden.
(1)A term contained in a regulated agreement or linked transaction, or in any other agreement relating to an actual or prospective regulated agreement or linked transaction, is void if, and to the extent that, it is inconsistent with a provision for the protection of the debtor or hirer or his relative or any surety contained in this Act or in any regulation made under this Act.
.
This term is covered by the above section of the CCA 1974 in that it breaches this:
.
 99 Right to terminate hire-purchase etc. agreements.
.
 (1)At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, 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
.
 In other words nothing can stop you voluntarily terminating.
.
although dependant on the way your agreement is written, they can charge excess mileage
.
 this has been accepted at county courticon level, but afaik has not been tested in a higher court
..
.
.

..............example letter..ADAPT TO SUIT.............
.
You must vt under s99/100 cca1974. do not sign any of their forms, or agree to pay anything. 
.
The car has just to be in reasonable condition for its age. 

If you have paid in excess of 50%, 
with no arrears there will be nothing to pay.
.
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/have not paid more than the amount calculated under the formula in Section 100 the amount due is £XXXX/zero.
.
 The above agreement will be terminated 14 days from the date of this 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...
..
 

[Impsfan]

Hi,

 

Many thanks for this super advice, I have just used the template and emailed that across to them.

 

I have cancelled the insurance and tax now on the vehicle is that the correct way forward? So it is sat on the roadside outside my house which I am feeling abit anxious about.

 

Again thankyou for the advice and I will pop any updates on this thread as and when.

 

Really appreciate you taking the time to respond.

 

Kirsty

 

 

[dx100uk]

ideally you should never use email

 

cant be on a public highway without tax/ins!!

[Impsfan]

Good evening,

Yes I am aware of the rules of of vehicles being left without insurance but wasn't sure where I stood as I cannot afford to keep it insured now.

 

I had the following response from Advantage, what do I do now?

 

Many thanks

 

Kirsty 

 

.............................................................................................................................................................

 

Dear Kirsty,

 

Please read the full contents of this email carefully.

Further to your recent enquiry regarding the voluntary termination of your above numbered agreement, please find below important information outlining the required arrangements.

Upon termination of the above agreement you will need to pay:

1. The outstanding arrears on your account (applicable if already paid 50% of the total amount payable) = £0
2. At least one half of the total amount payable as stated on your Hire Purchase Agreement. This sum takes into account payments you have already paid, any deposit you paid at the start of the agreement and any arrears not shown in (1) above = £3617.31
3. Any outs tanding collection charges = £48

The total you will need to pay under this section is £3665.31

If you purchased any insurance products, other than GAP insurance, at the same time as your motor finance and they have not already expired, they will be cancelled upon termination and a pro-rata refund will be applied to your account.

In the case of GAP insurance the policy will be cancelled upon the termination of the agreement and a pro-rata refund will be applied, which will mean that no further sums will be payable (other than arrears) in respect of the policy.

Any other outstanding sums (e.g. payments for expired policies and/or any overdue installments) will remain payable under the terms of your insurance agreement. 

In order to settle the insurance element of your agreement and claim any rebate to which you are entitled, you need to pay the amount set out below. This will also ensure that you have no further liability under the insurance element of the contract.

The amount required to do this is £0
Less Rebate £0

Total amount payable under this section £0


Condition of Goods

The goods must be returned in a condition commensurate with their age and mileage, both mechanically and cosmetically. Should the goods not be in this condition when returned you will be required to pay to us the amount required to return the goods to such condition. This amount will be in addition to any sums detailed above (please refer to the terms and conditions of your Hire Purchase Agreement).

Our definition of good repair and condition is that the vehicle must:
 

• Require minimal refurbishment to be ready for resale
• Have a current MOT certificate or require little or no work for the issue of a new certificate
• Be free from mechanical or body damage
• Be in its original paintwork, trim and specification (as at the time of purchase) 
  
  If you are in any doubt as to the condition of the vehicle, you may choose to obtain an independant report from an organisation such as the RAC or AA to confirm the above.
  
  The goods must be returned to us within 21 days of this email to complete the Voluntary Termination.
  
  In order to obtain details of our nearest agent to you please contact us on 01472 570610.
  
  Alternatively, we can arrange for the goods to be collected from your address. An upfront fee of £80.00 will be payable for this. 
  
  We look forward to hearing from you.
  
  Yours sincerely,
  Advantage Finance Ltd.

Hi,

 

Many thanks for this super advice, I have just used the template and emailed that across to them.

 

I have cancelled the insurance and tax now on the vehicle is that the correct way forward? So it is sat on the roadside outside my house which I am feeling abit anxious about.

 

Again thankyou for the advice and I will pop any updates on this thread as and when.

 

Really appreciate you taking the time to respond.

 

Kirsty

 

 

[dx100uk]

I said TAX get if off the road or you could be fined £1000

[dx100uk]

as for advantage they cant charge £80.

 

dx

[Impsfan]

You actually said tax/Insurance  

 

I haven't cancelled the DD for the TAX just the insurance.

 

What do I need to come back to them with?

 

Sorry to be a pain, really struggling here.

 

Thanks 

 

Kirsty

[dx100uk]

in post 4 you said TAX..good 

 

so if their nearest return point is not too far away they cant charge anything tell them to come and get it

[aesmith]

On 22/08/2019 at 23:25, Impsfan said:

I have cancelled the insurance and tax now on the vehicle is that the correct way forward? So it is sat on the roadside outside my house which I am feeling abit anxious about.

Are you the registered keeper, shown on the registration document (V5C)?  If so then you're required to keep the car taxed and insured unless it's both declared SORN and kept off the public road.  If the finance house is the registered keeper, it's their problem.