voluntary termination consumer credit act - Please help

[03murrayj]

My partner got a vehicle through finance, it was a Hire purchase loan or c

she has had the vehicle for 1.5 years and the finance was for 3 years.

she has around £2000 left on the loan - now over the 50% marker

recently the engine exploded and police and fire brigade had to be called out due to oil being everywhere in the road.

i was reading the the contract and states that under the consumer credit act 99, she can return the vehicle half way through your contract providing you took reasonable care of the vehicle. The car was well maintained and MOT showed no advisory's. apparently this is some what a engine fault by Toyota Possibly but are currently awaiting to hear back from them.

finance are refusing the vehicle back stating we would have to pay all costs for engine.


currently

1. finance company refusing to take car back under consumer credit act section 99 wondering if the company is saying "complaint" rather then dealing with it as per consumer credit act to try and dodge the question.

the finance company keep beating around the bush advising she owns the veh but when challenged stating they own vehicle until last payment they back down and then say its general wear and tear. my partner has only done 7850 miles when she got the car and the clock is at around 52000 so the car is hardly old

2. Once they officially reject and send a formal reply apparently then ombusman can get involved http://www.financial-ombudsman.org.uk/

3. Awaiting to hear from toyota engineer however was advised over the phone by there head office that it was not a car under this list of fault/recall engines.
------


Finance company have advised they have sent a final letter stating the closure to the "complaint" and the reasons why. they advised what was written over the phone but are yet to receive the letter. when we have got this letter we are then allowed to get ombudsman involved

however i was advised to send the S99 leter ASAP

we have now sent a letter stating

1 November 2017

Dear Sir/Madam
Voluntary termination of agreement
Account No: **********************
Car make/model/registration no: Toyota/Aygo/************
I am writing to notify you that I am exercising my right to terminate the above agreement under Section 99 of the Consumer Credit Act 1974.
I understand that I will owe you for the amount calculated under the formula in Section 100 of the Consumer Credit Act 1974.
Please send me details of how the vehicle can be returned to you.
Please confirm receipt of this request by Email to me on *********@yahoo.com.
I look forward to hearing from you.
Yours faithfully
************##



however i have seen a better template on this lovely forum i have now come across that i wish i sent that instead.

please can anyone help with the situation

[03murrayj]

Re: voluntary termination consumer credit act - Please help

the complaint has come back from the finance stating


in reply to your complaint


(finance company) we are unable to uphold the your decision due to all the reasons below
investigation which was carried out, a significant factor when considering a claim or complaint of faulty goods regarding how long the goods have been in the customers possession,(finance company) liability is the finance provider & the motor dealer has liability of the supply of the goods or faulty at the time of sale or near after. you purchased the used motor vehicle on march 2016 therefor you had use of this vehicle for aprox 1 year 7 months. you have in that time covered approx 11000 mile and passed it last test MOT history shows it passed its last test with no advisory's . bearing in mind the length of time you have owned this vehicle and the mileage covered and the fault now identified this would mean it would have failed its last MOT. I can only summaries that the vehicle engine fault would fall under the categories of the way the car was driven, maintenance and general wear and tear or a combination of all three.


we can not offer any financial assistance with this.




the MOT was from a very well known garage and the car has infact only done 7850 miles


would you still advise to stick to the S99 CCA ?

[seduraed]

Re: voluntary termination consumer credit act - Please help

What have your insurers said? Is the vehicle at total lissue? F ire is usually an insured risk. Check to see ifull you have Gap insurance. This is usually sold with hire purchase and will cover the difference between the insurance payout and theasy remainder of the finance. I think this might be a better way to go than VT.

[03murrayj]

Re: voluntary termination consumer credit act - Please help

What have your insurers said? Is the vehicle at total lissue? F ire is usually an insured risk. Check to see ifull you have Gap insurance. This is usually sold with hire purchase and will cover the difference between the insurance payout and theasy remainder of the finance. I think this might be a better way to go than VT.

We are fully comp, but the are exploded but did not set fire ? I did not believe that would be a classed as a fire or am I wrong.

We also have gap insurance but if the insurance do not write to say the vehicle is a total loss due to a road accident fire or theft. Do not believe they will pay out either.

[R0b]

Re: voluntary termination consumer credit act - Please help

First of all, legally speaking once you have given notice to terminate the contract you can't renege on it. So strictly speaking by you giving notice to terminate, the contract is effectively terminated - that's how I see the current legal position but irrespective of whether or not the lender refuses to collect the car is irrelevant its still their vehicle which leads me onto my second point.

I think you perhaps misunderstand the purpose of VT and it was primarily inserted to assist those who struggle to repay their monthly instalments but of course many abuse this. Just because you VT and want to hand the car back doesn't mean you get away scot-free simply because you've paid 50% of the total amount payable, your partner is still under an obligation to have taken reasonable care of the vehicle and if not, then the lender has a right to recover the difference between what the car would be if it were in a reasonable condition against what its worth in its current condition. The lender will argue that if the car is not roadworthy then you need to take steps to make it roadworthy or they will claim compensation and the courts have agreed with this position.

Has anyone actually given a diagnosis on how it actually happened? The response to your complaint seems to sum up what the issue might be in that it could have been down to the lack of care and maintenance from the previous owner(s) or perhaps your partner missed a warning sign and did nothing about it which contributed to the issue or perhaps was completely unaware. Until a proper diagnosis as to the root cause of the problem it might be difficult to know where the blame lies. This is part of the problem with second hand cars and its difficult to foresee every little problem thats going on, and buyers should expect that second hand cars might have problems with them and to be cautious but it looks like the car has driven 11k miles before this has happened so there has been some reasonable use out of it.

As Seduraed has suggested check the wording of the GAP policy too particularly as to the definitions of what they consider fire, road accident or total loss as that may or may not cover you. Insurers will generally try to get out of paying you if they can so you need to see if your covered. For example, even though there was no actual fire when the engine went, the policy may define road accident as something which covers your partner if she was out driving on the road. Might be unlikely but as I said the definition is important so as to understand if your covered or not.

[03murrayj]

Re: voluntary termination consumer credit act - Please help

First of all, legally speaking once you have given notice to terminate the contract you can't renege on it. So strictly speaking by you giving notice to terminate, the contract is effectively terminated - that's how I see the current legal position but irrespective of whether or not the lender refuses to collect the car is irrelevant its still their vehicle which leads me onto my second point.

I think you perhaps misunderstand the purpose of VT and it was primarily inserted to assist those who struggle to repay their monthly instalments but of course many abuse this. Just because you VT and want to hand the car back doesn't mean you get away scot-free simply because you've paid 50% of the total amount payable, your partner is still under an obligation to have taken reasonable care of the vehicle and if not, then the lender has a right to recover the difference between what the car would be if it were in a reasonable condition against what its worth in its current condition. The lender will argue that if the car is not roadworthy then you need to take steps to make it roadworthy or they will claim compensation and the courts have agreed with this position.

Has anyone actually given a diagnosis on how it actually happened? The response to your complaint seems to sum up what the issue might be in that it could have been down to the lack of care and maintenance from the previous owner(s) or perhaps your partner missed a warning sign and did nothing about it which contributed to the issue or perhaps was completely unaware. Until a proper diagnosis as to the root cause of the problem it might be difficult to know where the blame lies. This is part of the problem with second hand cars and its difficult to foresee every little problem thats going on, and buyers should expect that second hand cars might have problems with them and to be cautious but it looks like the car has driven 11k miles before this has happened so there has been some reasonable use out of it.

As Seduraed has suggested check the wording of the GAP policy too particularly as to the definitions of what they consider fire, road accident or total loss as that may or may not cover you. Insurers will generally try to get out of paying you if they can so you need to see if your covered. For example, even though there was no actual fire when the engine went, the policy may define road accident as something which covers your partner if she was out driving on the road. Might be unlikely but as I said the definition is important so as to understand if your covered or not.

Thank you for your time,

i have contacted motor insurance they are advising only cover if it was arson, road traffic collision or if for some reason the car next to our car set alight and then set our car alight. they keep referring to car as mechanical fault fire which is not covered.

i have attached policy of the gap


currently searching through small print of motor insurance now

[R0b]

Re: voluntary termination consumer credit act - Please help

What are the definitions for 'total loss', 'accidental damage', 'fire'?

Although the insurer might be referring to the problem as a mechanical fault, that might be true but you are better off reading the relevant sections of the policy to ensure your happy that is correct.

[03murrayj]

Re: voluntary termination consumer credit act - Please help

What are the definitions for 'total loss', 'accidental damage', 'fire'?

Although the insurer might be referring to the problem as a mechanical fault, that might be true but you are better off reading the relevant sections of the policy to ensure your happy that is correct.

Thanks for your help both of you

I have attached the Policy document, but struggling to understand there interpretation.

please could anyone assist ?

thank you

[03murrayj]

Re: voluntary termination consumer credit act - Please help

Thanks for your help both of you

I have attached the Policy document, but struggling to understand there interpretation.

please could anyone assist ?

thank you

1 Cover for your car and its accessoriesIf your car is lost or damaged as a result of fire, lightning, theft or attempted theft, you will becovered for the loss or damage to:
● your car
● your car’s standard accessories and spare parts whilst in or on your car
● your car’s audio/visual or electronic equipment, as long as it is permanently fitted to yourcar. Any equipment fitted by the manufacturer will be covered in full. The most we will payfor aftermarket equipment is 15% of the value of the car up to a maximum of £1250In the event of your car keys being lost or stolen from somewhere other than your car, we willpay up to £300 towards the cost of replacing the locks.


but cannot find where it actually goes into real definition

[03murrayj]

Re: voluntary termination consumer credit act - Please help (@r0b)

when speaking to Insurance company over the phone they advised it is not covered under 'total loss', 'accidental damage', 'fire'?

This call was made twice and believe it was a out of hours call center .

However there is no real definition in there policy.

I went onto the website and put the claim in by that, and it appears to have gone straight past customer services and to the claims team to investigate.

I have spoken to a solicitor who also believes i should be able to claim as a fire & Total loss.

at the moment its a waiting game between finance & insurance to see who will be dealing with the damage.

ombudsman are looking into the case with the finance company.


unfortunately, S99 was sent to Finance company already, they replied via email stating

"Thank you for your recent query through our website. Unfortunately we cannot confirm via email if you are eligible to voluntary terminate your agreement however, if you require this or further information regarding the process please give us a call"

A letter & email was also sent at the same time.


Either way im looking at 3 options


1. Finance pays for a new engine & we return car or keep car - depending if they go back on s99

2. insurance pays a new engine & we return car or keep car - depending if finance go back on s99

3. We Pay for a reconditioned engine and return vehicle in a reasonable condition and cancel finance under s99.
[MENTION=71570]R0b[/MENTION] Any advice please.

[R0b]

Re: voluntary termination consumer credit act - Please help

Your insurance doesn't seem to have definitions per se but there are headings which says what is covered and what isn't. On page 15 of the booklet, it does say what is excluded from the insurance cover and in particular it says the following:

for any loss or damage caused by mechanical, electrical, electronic, computer failures,breakdowns or breakages

There's not much more that I can add to your three options as already suggested. Strictly speaking you could argue with the dealer that it should have carried out sufficient checks but that is likely to be very costly if you lose and I wouldn't chance it anyway since the car is second hand and has driven some miles already by your partner.