Trying to vt on hip agreement finance company says liable for full amount!

[Shazzler]

Hi all im in desperate need of some advice. I took a car on hp in December now 6 months into the agreement my financial situation has changed unexpectedly and I can no longer afford the repayments. I have contacted the finance company today to inform them I can't afford it and to get them to take the car before it gets to the repossession stage as this would just add further charges. Let's just say they were very unsympathetic to my situation and told me I should of seen this change coming before I took the agreement on!
they said that because I'm only 6 months into the agreement I'm liable for the full balance of the agreement minus the proceeds from the sale of the car. Surely this can't be right? as in my agreement it states this
termination your rights
you have a right to end this agreement. To do so you should write to us. We will then be entitled to the return of the goods and to half the total amount payable under this agreement which is £5,936.60. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more.
to me this states they take the car and I have to pay half of the agreement? Am I wrong?
The finance company are saying that because I'm only 6 months into the agreement I'm liable for the full amount of the agreement minus proceeds from the sale of the car. They also said that they won't collect the car until I write to them accepting that I am liable for the full amount.
surely they can't do this. Reading further into the agreement it states that if they end the agreement and take the car I'm liable for the full amount. I obviously don't want to have the car repossessed as it just adds further charges and doesn't help my financial situation. Could somebody please advise me if the finance company can do this to me and what rights I have

tia

[R0b]

Re: Trying to vt on hip agreement finance company says liable for full amount!

Evening,

Who is the finance company? They are clearly stringing you along as that it not legally correct. That being said, have you been served with a default notice or has the lender terminated the contract, or are you simply making inquiries to them and the contract is still alive?

You will however be liable for them up to the 50% mark so you will need to come to some arrangement with them to make the repayments, offering a reasonable sum of money based on your affordability. There is an option under the CCA where you can ask the court to make an order for a lower sum of the remaining 50% balance but this requires making an application and going to court - it might be possible to make a decision on paper but either way its not guaranteed.

What they are doing is putting undue pressure on you and that is likely to amount to aggressive commercial practices which you should report not only to the FCA but also to your local trading standards.

If you are intent on giving notice to VT, my suggestion is to write a letter to them outlining the following:

1. Make it known in the first instance that you wish your letter to be treated as a formal complaint, even put a heading as 'Formal Complaint' or something like that.

2. Explain they are wrong by saying you are legally obliged to pay for the full amount. Refer them to the statement in your agreement and also section 99 of the CCA - more info here ->http://www.legalbeagles.info/forums/...on-Your-rights

3. By stating that they will not collect the car unless you admit to them in writing you owe the full amount is considered to amount to aggressive commercial practices in breach of the consumer protection from unfair trading regulations 2013 and that you will be reporting their actions to your local trading standards.

4. In addition to point 3, their aggressive nature as regards to your financial status is also in breach of Principle 6 of the FCA rules (Treating customers fairly) and also Rule 7.3.4 of CONC which they are legally obliged to comply with (more info here -> https://www.handbook.fca.org.uk/handbook/CONC/7/3.html). You will also report them to the FCA.

5. Explain what you want to do e.g. notice to VT and the next steps required.

6. Also remind them that as the letter is a formal complaint, you expect them to investigate your complaint for which they have up to 8 weeks and provide a final decision or alternatively, provide you with a deadlock letter so that you can proceed with your complaint to the Financial Ombudsman.

I'd recommend you stay off the phone and put everything in writing as evidence, if you need to speak on the phone then you should record the call - there's plenty of call recording apps out there that you can use. If you need any further pointers, have a stab at drafting something first and post it up and we can comment further.

[Shazzler]

Re: Trying to vt on hip agreement finance company says liable for full amount!

Thank you for your advice the finance company is specialist motor finance limited also known as the funding corporation.I have prepared a letter stating I wish to terminate and I will pursue a complaint with them about their bullying tactics.