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CLS car finance please help

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  • #16
    Re: CLS car finance please help

    I would remove your personal number from your post, this is a public forum.

    In short, their response appears to acknowledge that you have the right to terminate at any time and in turn must therefore accept that having given your notice to terminate the agreement terminated with immediate effect, whether by email or upon receipt of the letter according to normal postal rules.

    Their reply to section 100(1) is irrelevant, as I don't think you are disputing the fact that there is an outstanding amount to pay, but the manner and how much should be paid. They mentioned the next contractual payment but the agreement is terminated so you are not obliged to make a payment on 21 December rather you need to come to an arrangement to repay the difference required. Was this the date on which you made your monthly instalments? I can't see how they can agree unilaterally that payment must be made on this date if you didn't agree to it in the first place, unless you did agree. Section 100(1) simply what you are liable for but it doesn't mean that it must be paid immediately before termination of the agreement can be effected or accepted by CLS.

    The other point is that they are regulated by the FCA and therefore have to comply with certain rules with consumers. The FCA CONC Handbook says that (CONC 7 - Arrears, default and recovery), lenders must have due regard to its obligations to treat customers fairly when they are in arrears (7.3.2), must treat customers with forebearance and due consideration when in difficults with arrears/debt (7.3.4), should allow the customer a reasonable amount of time to repay the debt (7.3.6) and more importantly, not to pressurise a customer to repay a debt in one single amount or very few amounts where those amounts are unreasonable large and/or would have an adverse impact on the customer's financial situation (7.3.10).

    The references to all of the above can be found here -> https://www.handbook.fca.org.uk/handbook/CONC/7/3.html

    There might be more but you will see on that link there is reference to an "R" and a "G". Reference to "R" is a rule and therefore a legal obligation whereas a "G" is guidance which is not an obligation but gives an example as to how lenders should comply. Arguably if they are in breach of any of the rules, that could give rise to an unfair relationship.

    You can complain to the FOS if you want, but perhaps it might be worth writing back to CLS and pointing out these failures and addressing the points they have raised with what you have commented on. Offer them the opportunity to reconsider their decision but if they insist then you will go to the FOS and also seek compensation for the difficulties and obstructions that CLS have put up when you tried to exercise your right to VT.

    There's probably some more things I've missed off but thats a starting point and if you want to post up a draft response, happy to look over it and give feedback before you send it off.
    If you have a question about the voluntary termination process, please read this guide first, as it should have all the answers you need. Please do not hijack another person's thread as I will not respond to you
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    LEGAL DISCLAIMER
    Please be aware that this is a public forum and is therefore accessible to anyone. The content I post on this forum is not intended to be legal advice nor does it establish any client-lawyer type relationship between you and me. Therefore any use of my content is at your own risk and I cannot be held responsible in any way. It is always recommended that you seek independent legal advice.

    Comment


    • #17
      Re: CLS car finance please help

      I honestly cannot thank you enough for all of your help. This has been a stressful decision to come to with two young children and not being in the middle of our town so this has just all added to it!

      Comment


      • #18
        Re: CLS car finance please help

        Finally have a response. I’m finding this so draining and stressful


        Mxx xxxxxxxx

        We do not agree that we have acted unfairly in any way.

        It seems we are going around in circles and as you have had our final response, you are entitled to refer this to the Financial Ombudsman Service for investigation and adjudication.

        Your assertion that we have not upheld CONC 7 is wholly disputed. We refer you to our previous 2 emails which address the issues clearly. We have requested a submission of a Common Financial Statement from you, which it appears you are refusing to provide us with. We are unable to help people who refuse to assist us in fact finding.

        The Notice of Default issued on 28/11/17 requires a payment of £219.19 arrears before 17th December. Should this remain unpaid then we will have no other option but to proceed with a repossession of the vehicle for the default.

        We find your selective application of the Consumer Credit Act rather bemusing. You are mistaken at best. Clearly you are receiving advice from someone with knowledge of the Act and CONC. However, we suggest you seek a qualified second opinion as a matter of urgency.

        Again, for absolute clarity, you have been given our final response on 8th December 2017. Please refer this to the Financial Ombudsman Service for adjudication as you have continually threatened. It is something we are entirely comfortable with.

        We will now hold the account to the 18/12/17 and review for repossession should the arrears not be paid.

        Regards

        Colin Long
        CLS Finance
        Last edited by Kati; 14th December 2017, 13:17:PM.

        Comment


        • #19
          Re: CLS car finance please help

          Hello,

          You are more than welcome to go to the Ombudsman and complain to them about this should you wish. If they have given you a budget sheet but you have refused then that's up to you, but of course you can always partially complete the information if some of the questions being asked are too intrusive which would make you look more reasonable than point blank refusing.

          Equally, Mr Long is entitled to his own opinion but it seems that he is misguided in his approach and I am not sure why he finds it rather 'bemusing' and 'selective' in the application of the CCA. Sections 99 and 100 govern the right to VT and your liability upon doing so, it is a unilateral right and irrespective of whether a default notice has been issued - as long as the agreement remains alive, you can still VT and avoid paying the whole balance rather you will have to pay the outstanding arrears plus the rest of the balance to make up the 50%. Once terminated, the date specified on the default notice to remedy the issue becomes redundant for the reason that you terminated before they had the chance to.

          As for the supposed repossession of the car, that can only be a good thing since you want rid of it anyway but doesn't affect your limited liability under section 100.

          You need to decide, what are you going to do?
          If you have a question about the voluntary termination process, please read this guide first, as it should have all the answers you need. Please do not hijack another person's thread as I will not respond to you
          - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
          LEGAL DISCLAIMER
          Please be aware that this is a public forum and is therefore accessible to anyone. The content I post on this forum is not intended to be legal advice nor does it establish any client-lawyer type relationship between you and me. Therefore any use of my content is at your own risk and I cannot be held responsible in any way. It is always recommended that you seek independent legal advice.

          Comment

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