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    Default A guide to voluntary termination: Your rights

    As a public forum, the content posted by me is intended as guidance in relation to your rights and responsibilities. It does not constitute legal advice or create any kind of special or other relationship. If you follow guidance, advice or other information I publish then you do so at your own risk and cost, and I cannot accept any liability. You should always seek independent legal advice by going to Law Society's Find A Solicitor or contact your local Citizen's Advice Bureau.

    If you have any questions please start a new thread HERE (you will need to register) and tag R0b by using @R0b if you need help


    Contents
    1. What does voluntary termination mean?
    2. Working out how much you have paid (or need to pay)
    3. Tips
    4. FAQs
    5. Complaining to the Financial Ombudsman
    6. Sample Letters to Finance Company
    - Letter terminating the agreement under s.99 CCA 1974
    - Letter disputing excess mileage charges
    - Letter disputing damage charges for condition of the vehicle
    -
    Letter to lender disputing collection fees


    1. What does voluntary termination mean?
    Voluntary termination is a process by which the consumer has a right to terminate a regulated credit agreement under the consumer credit act 1974 and liability is restricted to 50% of the total amount payable. You can terminate your agreement at any time before the final payment under the agreement becomes due however if you have not yet paid 50% of the total amount at the point of termination, you will still be liable for the remaining balance which makes up the 50%.

    What type of finance agreement do I have?

    Hire Purchase: a HP agreement is a type of agreement which the car is hired to you over a fixed period of time. At the end of that fixed period you have the option to purchase the car (though you are not under an obligation to do so) or return it back to the lender. Under HP agreements, you are paying both the depreciation and the value of the car.

    Conditional Sale: a conditional sale is almost identical to a hire purchase agreement except for one difference. under a hire purchase, you have the option to purchase the car at the end of the agreement whereas a conditional sale obliges you to purchase the car and make the final payment.

    Personal contract purchase (PCP): Similar to conditional sale and hire purchase agreements, PCP agreements tend to have lower monthly instalments because they only cover the depreciation over the term of the agreement, leaving a much larger balloon payment at the end. PCP agreements are becoming increasingly popular with consumers but do be careful if you intend on using the VT process. Because you are only paying off the depreciation only (and not the value too), you are likely to be close to the end of the agreement before you reach the 50% mark.

    Personal Contract Hire (PCH): a PCH agreement is essentially a hire agreement over a long period of time, returning it at the end of the agreed term. One thing to note is that there are strict limits on the mileage you can do, and if you go over, you may get stung. Be sure you estimate your annual mileage correctly but as a guide, the average number of miles is around 10-12k per year.

    Fixed Sum Loan: Fixed sum loan agreements are effectively personal loans that you would usually obtain from your bank however the loan can only be used for the purchase of the car where the lender will pay the dealership directly. Ownership of the car will immediately pass to you on entering into the agreement and you repay the monthly instalments in accordance with the terms. Be aware that some finance companies such as Santander and FCA Automotive Services (a subsidiary of Fiat) offer fixed sum loan of agreements.

    2. Working out how much you have paid (or need to pay)
    As already discussed above, you do can terminate the contract at any time and do not need to have paid half of the total amount payable. However, if you want to work out how much you have paid to date then there are two ways in which you can go about it.

    The ‘rough and easy’ way
    In your contract, you should find a clause or heading that says “Termination: Your Rights”, if you can’t find it then that may be an indication that your contract may be a different type of contract (see above to check the type of contract you may have). The statement should tell you how much you need to pay to meet half the total amount payable. Once you have found this, you simply calculate the monthly instalment amount you pay each month with the number of months you have paid so far.

    Example
    The figure in the “Termination: Your Rights” statement says that you must pay £6,217.06 to have met the halfway mark. Your monthly instalments are £236.22 and to date, you have paid 27 instalments. Your calculation would be as follows:
    £236.22 x 27 = £6,377.94
    As you can see, you have paid more than £6,127.06 and so you can terminate the contract without any further liability provided you have no outstanding instalments and the car is in a reasonable condition.


    The law relating to voluntary termination
    There are several provisions under the CCA which provides certain rights to a debtor in relation to voluntary termination. I have set out the provisions below and highlighted the key words in each section which are most relevant.


    Section 99: The right to terminate the agreement at any time


    (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.

    (2) Termination of an agreement under subsection (1) does not affect any liability under the agreement which has accrued before the termination.
    Section 100: Liability is restricted to 50%

    (1) Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99 the debtor shall be liable, unless the agreement provides for a smaller payment, or does not provide for any payment, to pay to the creditor the amount (if any) by which one-half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before the termination.

    (4) If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have effect accordingly.
    Section 173: Conflicting contractual terms are void and not enforceable

    (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.

    (2) Where a provision specifies the duty or liability of the debtor or hirer or his relative or any surety in certain circumstances, a term is inconsistent with that provision if it purports to impose, directly or indirectly, an additional duty or liability on him in those circumstances.

    Section 189: Useful definitions


    “total price” means the total sum payable by the debtor under a hire-purchase agreement or a conditional sale agreement, including any sum payable on the exercise of an option to purchase, but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement

    3. Checklist when exercising the voluntary termination right


    Cleanliness of the car
    It is not necessary to have the vehicle cleaned professionally however out of courtesy, you should at least give it a clean yourself, both inside and out. If you do choose to have the car valeted make sure to get a receipt as proof.

    Take copies of all of the vehicle documentation
    Recent reports have suggested that some lenders are alleging that certain documentation such as the servicing manual or a valid MOT or even spare keys were not present when the vehicle was collected. Again, this is likely to be another way in which lenders will try to get that little bit extra from you.
    It would be sensible therefore, to take copies of all documentation you have on the vehicle e.g. V5C, MOT, repair receipts, servicing manual, spare keys or tyre etc.

    Do not sign any paperwork you are not comfortable signing
    It is common for lenders to send out some paperwork for you to sign and return but there is no legal obligation for you to oblige. Documentation may include:

    (a) a receipt which states that you agree to pay for any damages upon inspection of the vehicle; and
    (b) you agree to pay any collection charges incurred by the lender.

    The purpose of the documents is an attempt to induce you in waiving any limited liability under the CCA by signing the documents, it will certainly make your life a lot more difficult. If you sign the paperwork regarding collection fees or damages, the lender can argue that you had agreed to pay those charges and it could become an uphill struggle if the matter went to court.

    Some lenders are becoming increasingly aggressive in their ways to pressure debtors to sign the paperwork or they will refuse to accept the voluntary termination. Lenders have no right to refuse the termination (which would have happened anyway when you gave them notice), but their conduct and behaviour could give rise to a claim of undue pressure as well aggressive commercial practices, contrary to the Consumer Protection from Unfair Trading Regulations 2008.

    Your only obligation is to give notice to the lender explaining that you are terminating the contract, so it is therefore advisable that you do not to sign any paperwork.

    Service the vehicle regularly
    You should try and make sure that the car is serviced on a regular basis and where possible, in accordance with the servicing manual. This can help deflect any arguments by the lender that the car has not been returned to them in a reasonable condition, particularly if they are claiming excess mileage charges. By regularly servicing the car, you can show that you took steps to maintain the car in a reasonable condition.

    Photographs, photographs, photographs
    I cannot stress enough about making sure you take plenty of photographs of the car and at every angle (I’ll bet you the lender’s agent will) including any potential dents, scratches or marks on the car. This might not sound so obvious but around 80% of the disputes I am aware of, relate to the condition of the vehicle.

    Lenders have a habit of recovering as much money out of you from the voluntary termination and you do not want to give them any wiggle room. I have also heard that on some occasions, an inspection of the car is not always carried out immediately and may in fact be some weeks after the car has been returned. In between that time there may be scratches or marks that weren’t there at the time of handing it over but nonetheless, the lender will look to you for compensation, not the car auctioneers. Taking photos prior to the handover gives you the opportunity to compare and raise any discrepancies.

    More recently, some lenders have sought to argue that because the photos are not timestamped, the authenticity is questionable (the same could be said about their photographs with no timestamps on). To counter this argument, I would recommend using an app with timestamp capabilities. Below are two apps with these capabilities and which I have used personally and work perfectly well though I cannot attest to any other app with timestamp capabilities.

    Timestamp App for iPhones
    https://itunes.apple.com/gb/app/time...327756085?mt=8

    Timestamp App for Android
    https://play.google.com/store/apps/d...afree&hl=en_GB


    4. FAQs

    Can a lender prevent me from terminating the agreement voluntarily?
    The ability to VT an agreement is set out in law and lenders cannot carve this out of the contract. Furthermore, the agreement must also state your right to terminate and include the right to terminate once you have met the 50% mark.

    I have been charged excess mileage, what can I do
    Provided that you have followed the correct procedure in terminating your agreement under section 99 of the CCA, lenders cannot charge you for excess mileage, even if there is a term within the contract which says they have a right to do so. Lenders may try to charge this in one of two ways

    They can charge because there it says so in their agreement
    Section 100 of the CCA says that liability is restricted to 50% of the total amount payable and so they cannot enforce it under the contractual term because the relevant reasons are set out in section 173 above. The term in the agreement is conflicted with your limited liability and so the Ca prevails over the contractual term.

    The excess mileage has caused the car be in a condition beyond reasonable

    This appears to be another tactic which is used by some finance companies, the burden of proof is on the finance companies. Simply saying that the excess mileage has caused damage to the engine is not enough, they would need to specify what damage has been caused. Equally if they went to court and raised this argument then they would need to provide an independent expert at their own cost, because the courts will not accept the opinion of a non-expert when it requires the opinion of an expert.

    You could also rebut this in cases where the vehicle is being used predominantly on motorways by saying that the cause is likely to be in a better condition than it would be through city driving because there is less stop / starts which would otherwise put wear and tear on certain parts such as the brakes and clutch.

    You could also say that the car has been regularly serviced (if it has) in accordance with the service manual and therefore there is no issue with the condition of the vehicle other than wear and tear. It would be up to the finance company to prove otherwise, which would be unlikely since it would cost them money to do so.

    The excess mileage was accrued prior to termination
    This one is a bit of a debate but if you read the specific wording of section 100(2) above, the finance companies will rely on the words that liability is not affected which was accrued before termination. The key thing to note here is that it says anything accrued immediately before termination - the only thing that could accrue immediately before termination would be any missed payments or upfront costs before taking hold of the vehicle. This would not extend to excess mileage because the finance company did not invoice you prior to termination of the agreement and did so only after it was terminated. It is a contractual term which does not form party of the monthly instalments so for the finance companies to recover this, thye should be only entitled to do so if you were asked to pay for it before you terminated the agreement.


    The lender has sent me a bill relating repairs for damage to the vehicle
    Lenders may charge you for repairs to the vehicle if the car was not returned in a reasonable condition. The CCA does not define what is reasonable however the guidance below may indicate that the vehicle is in a reasonable condition:

    1. Regular servicing
    2. Valid MOT
    3. Small stone chips and scratches resulting from motorway driving
    4. Any minor scratches or dents
    5. Minor scuff marks on alloy wheels

    To reiterate, the above is just a guide and is very much subjective. It is up to you to decide whether the vehicle is deemed to be in a reasonable condition. Most of the time, lenders will sell the vehicle at auction and despite charging for repairs, will not have carried out the repairs and so there has been no loss. In any event, the lender cannot guarantee the vehicle would have sold for more at auction if the repairs were done as the vehicle is being sold at auction and therefore have no control over the selling price.

    Unlike commercial rental vehicles, it is arguable that the vehicle does not need to meet a certain standard as it was intended for private use and so the vehicle is not required to be at a certain standard other than a reasonable condition that is roadworthy. In addition, the lender would need to provide some form of substantial proof of the market value of the vehicle in a reasonable condition and the market value of the vehicle in its current condition. This can be quite difficult for lenders to quantify as many private sellers may charge various prices with little discrepancy between the condition of the vehicles.

    Finally, in order to reclaim any charges for damage to the vehicle, the lender must make an application to the court. For the reasons above, the lender is unlikely to do this as it would not be commercially viable and cost effective as such claims are likely to end up in the small claims court and legal fees are generally not recoverable.

    The lender has referred me to the BVRLA guidelines
    The BVRLA guidelines is a manual which is generally used in the commercial sector for the hiring and financing of commercial vehicles. They do not generally apply to consumer related agreements. Regardless of whether the lender is a member or not, you should point out the fact that the guidelines are explicitly used for commercial rentals and leasing and are therefore not applicable to consumer credit agreements.

    If you wish to check to see if the lender is a member you can do so here http://www.bvrla.co.uk/advice/public...mber-directory.

    I am being asked by the lender to pay collection charges
    This is another common claim by the lenders and the simple fact is that they cannot charge you to collect the vehicle. The Consumer Credit Act states that once you have invoked your right to terminate under section 99, lender’s cannot impose any further liability which includes charging for collection of the vehicle.

    Although it has been previously mentioned that you need only deliver the vehicle a reasonable distance, I have yet to discover any conclusive evidence that this is obligatory. Therefore, if you wish to deliver the vehicle, it would not be unreasonable to receive reasonable expenses in doing so.

    Does voluntary termination affect my credit file
    No it will not affect your credit rating at all. However, lenders can put a mark on your file to say that you voluntarily terminated the agreement. The effect of this is that it may alert other lenders who run a search on your report that you have not seen your agreement through to the end. This may or may not be a factor in the decision criteria of the lender which could result in being accepted but you are then offered a higher interest rate or the lender may reject you on the basis that you run the risk of terminating early.


    5. Complaining to the Financial Ombudsman (FOS)

    If you are still not satisfied with the response given by the finance company and they have sent you a final decision or it has been 8 weeks since your first complaint, you have the right to ask the FOS to investigate your complaint.

    What powers does the Ombudsman have?
    If the FOS upholds your complaint against the finance company, it can make a monetary award as it sees fit and/or a direction for the finance company to take certain actions or steps. Examples of a direction may include:

    1. The removal of any adverse credit information on your credit file
    2. Amend the terms of the agreement
    3. Make the finance company give an apology

    Do I have to accept the Ombudsman’s decision?
    Whatever the Ombudsman’s decision, they will write to you explaining their reasons as to how they have come to their decision. If they agree with you and uphold your complaint, you can accept their decision and this will becoming binding on both yourself and the finance company. If the finance company refuses to follow the Ombudsman’s decision then you can apply to the court to enforce the decision. This is simply a formality as the law already states that the decision is legally binding. If they still fault to comply, then you will several methods of enforcement as if you obtained a judgment in the court.

    However, if the decision does not go your way, you are not obliged to accept their findings and you will not be bound by the decision unless you accept it. If you disagree with any of the reasons made by the Ombudsman, you can ask for a further review of the decision and provide them with an answer as to why you disagree. If, after a review of the initial decision your complaint is still not upheld, you can still reject the Ombudsman’s decision. At this point the finance company will need to bring a claim against you in court for the recovery of the outstanding balance (for more information on whether a finance company will take you to court, see the FAQs above).

    How do I make a complaint to the Ombudsman?
    First you will need to download the complaint form from their website. You can do this by clicking on the following link: http://www.financial-ombudsman.org.u...complaints.htm

    Next you will need to complete all the relevant information so make sure that you have all your paperwork to hand before writing your complaint. If you are missing anything that you feel is relevant to your complaint which the finance company has, you can request that information to be provided to you. Some of the information that you will require when filling out your complaint will include:

    1. A copy of the agreement and the date which you entered into it
    2. Photographic evidence of the vehicle
    3. The relevant provisions of the Consumer Credit Act
    4. The final decision letter from the finance company

    How successful will my complaint be?
    Going from previous experience on this forum, it would appear that there is little to no success in the Ombudsman finding in favour of the consumer when it comes to disputing excess mileage. Their general reasons are that the excess mileage beyond the agreed mileage in the contract means the car must be in an unreasonable condition, despite lenders not offering up no evidence that the car is in fact not mechanically sound.

    This of course is disappointing however the Ombudsman will only look at what is fair and reasonable and will not carry out a detailed analysis of the CCA, as that is the role of the court. Furthermore, you are not obliged to accept the Ombudsman's decision and it would still be up to the lender to pursue any alleged debt through the court system. My general recommendation is that pursuing any dispute through the Ombudsman for excess mileage would not be worth the time and effort, until there is a legally binding decision from the court.


    6. Sample Letters to Finance Company

    Voluntary termination letter to lender
    You can use this template to give notice to terminate our agreement. Be sure to amend the template to suit your needs.

    Dear Sir / Madam,

    TERMINATION OF AGREEMENT PURSUANT TO S.99
    OF THE CONSUMER CREDIT ACT 1974

    Agreement number:

    Registration:

    I am writing to notify you that I wish to invoke my statutory right under section 99 of the Consumer Credit Act 1974 and hereby give you notice that the agreement is terminated effective immediately from the date of this letter. Please confirm by return acknowledgement of this letter and to make arrangements for collection of the vehicle.

    The condition of the car is noted as being in a reasonable condition for its age and photographic evidence has been taken in the event of any future dispute as to the condition of the vehicle.

    You will be aware that the Consumer Credit Act limits my liability to half of the total amount payable under the agreement but excludes any sum payable as a penalty, compensation or damages for a breach of the terms of the agreement. Such terms imposed are inconsistent with my rights under the Act and are therefore deemed void and unenforceable.

    The vehicle is now available for collection and I would be grateful if you could contact me on [NUMBER] to arrange a suitable time within the next 14 days.

    Yours faithfully,

    [NAME]

    ---------------------------------------------------------------------------------------------

    Response to lender disputing excess mileage charges #1
    This is a standard response template to a lender claiming excess mileage charges. There is certain wording in square brackets which you may wish to include or exclude as part of your letter to the lender.

    Dear Sir/Madam,

    Re: Voluntary Termination

    Agreement Number:
    Vehicle Registration:

    I am writing further to your letter dated [DATE].

    Please note that liability in relation to the alleged outstanding balance for excess mileage is denied.

    You have suggested in your letter that I am liable to pay excess mileage under the terms of the agreement, however this is not correct. Section 100(1) confirms that liability is restricted to one half of the total price payable. The CCA defines ‘total price’ as “total sum payable by the debtor under a hire-purchase agreement or a conditional sale agreement, including any sum payable on the exercise of an option to purchase, but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement” (emphasis added).

    As you have already alluded to, the excess mileage is a contractual term of the agreement and therefore cannot be included as an amount which is owed. This position is further clarified under section 173 of the Act in that any contractual term which is inconsistent with any rights under the CCA and imposes additional liability, whether direct or indirect, shall be void and unenforceable.

    [I note that your letter refers to s.100 of the Consumer Credit Act insofar as the vehicle is not in a reasonable condition as a result of the excess mileage. Despite this claim, you have not provided any evidence outlining specifically the damage caused to the vehicle due to the excess mileage. I am of the opinion that the vehicle was maintained in a reasonable condition throughout the period of the agreement. Therefore, such damage charges you are claiming would amount to fair wear and tear and the vehicle does not need to be returned to you in any better condition other than a reasonable one.]

    Nonetheless, the excess mileage clause is based on the principle of ascertaining an estimated value of the car, taking into account its age and anticipated mileage at the end of the hire period. The hirer is then offered the option to purchase the vehicle at the suggested price. Mileage which exceeds the stipulated amount under the terms does not however, mean that the vehicle is not in a reasonable condition.

    In any event, such sums you are alleging to be owed may only be recovered by a court order only and should you wish to pursue this matter in court, your application will be strongly defended.

    Please confirm by return that this matter is now closed.
    Yours faithfully,

    [NAME]

    ---------------------------------------------------------------------------------------------

    Response to lender disputing excess mileage charges #2
    This template is an example response to certain lenders e.g. BMW who suggest that s.99(2) allows them to recover the excess mileage charges since they 'accrued' immediately before termination of the agreement. There is some wording in square brackets which is optional depending on your circumstances and you may wish to include or exclude from your letter.

    Dear Sir or Madam,

    Voluntary termination of the Hire Purchase Agreement dated [DATE]

    I am writing further to your letter of [DATE] in connection with the above matter. Your comments are noted and I have set out below the following response.

    In your letter, you referred to section 99(2) of the Consumer Credit Act 1974 as the reason why you believe that the excess mileage charges are recoverable following termination of the agreement. In particular, you stated that because the excess mileage charges accrued immediately prior to the termination.

    Whilst I agree with your interpretation of section 99(2), I believe that you are misguided in your understanding of how this section applies when a debtor terminates the agreement voluntarily. This is because sections 99 and the 100 must be read together in order to fully understand what (if any) liabilities the creditor can recover. For the avoidance of doubt, I have set out below section 100(1) which stipulates the debtor’s liability when the agreement is terminated under section 99:

    Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99 the debtor shall be liable, unless the agreement provides for a smaller payment, or does not provide for any payment, to pay to the creditor the amount (if any) by which one-half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before the termination.

    As you can see, the provision clearly states that where a debtor terminates the agreement in accordance with section 99 (that is by giving notice in writing to the creditor), then the debtor’s liability shall be limited to one half of the total price payable including any sums owed in connection with the total price that became due immediately before termination.

    Although I have already referred to the definition of ‘total price’ in previous correspondence, I would like to reiterate that the definition of ‘total price’ means any sums relating to the total price payable including the option to exercise price but specifically excludes:

    (a) penalty charges;
    (b) damages for breaches of the agreement; or
    (c) compensation.

    As I'm sure you will agree, any ordinary reasonable person interpreting such a provision, would have no hesitation in coming to the conclusion that exceeding the agreed mileage under clause [clause no.] would be a breach of the agreement and thus fall into category (b) above. Indeed, it is also reasonable to suggest that it may also fall into category (c). Put simply, your suggestion that the excess mileage charges can be recovered under section 99(2) is wrong. Admittedly, any overdue instalments may be recovered (as the instalments form part of the total price payable) but this does not extend to excess mileage charges for the reasons I have set out above.

    In the circumstances, I believe that I have a very strong case against you should the matter end up in court and I would therefore invite you to close down this matter. If, however, you do not agree with the above interpretation, I ask that you provide detailed reasons as to why you still maintain that the excess charges are recoverable.

    I look forward to hearing from you.

    Yours faithfully,

    [NAME]

    ---------------------------------------------------------------------------------------------

    Response to lender disputing condition of the vehicle
    This is an example response to the lender dispute the condition of the vehicle.

    Dear Sir/Madam,

    Re: Voluntary Termination

    Agreement Number:
    Vehicle Registration:

    I am writing to you with reference to the above matter and your letter dated [DATE]. Please note that liability in relation to the alleged outstanding balance for excessive damage to the vehicle is denied.

    The vehicle was maintained in a reasonable condition throughout the period of the agreement and therefore such damage charges you are claiming would amount to fair wear and tear; the vehicle does not need to be returned to you in any better condition other than a reasonable one. Photographic evidence was taken prior to the vehicle being transferred to you which clearly shows that the vehicle was in a reasonable condition. The onus is on you to prove that the alleged damage caused was more than reasonable fair wear and tear.

    Notwithstanding the above, I have paid circa [XX%] of the total amount payable and any alleged damage to the vehicle would be covered by these additional payments.

    [USE THE EITHER THE PARAGRAPH ABOVE OR BELOW]

    Notwithstanding the above, I am prepared to pay a reasonable sum of [£XXX.XX] relating to the [DESCRIBE WHAT COSTS ARE FOR].

    In any event, such sums you are alleging to be owed may only be recovered by a court order only and should you wish to pursue this matter in court, your application will be strongly defended.

    Please confirm by return that you agree to the payment above / this matter is now closed.

    Yours faithfully,


    [NAME]

    ---------------------------------------------------------------------------------------------

    Response to lender disputing collection charges
    A letter denying that collection charges are recoverable and sets out the reasons why.

    Dear Sir/Madam,

    Re: Voluntary Termination

    Agreement Number:
    Vehicle Registration:

    I am writing further to your letter dated [DATE].

    I am under no obligation to pay any fees for the collection of the vehicle. The Consumer Credit Act 1974 explicitly states that, my liability under the agreement is limited to half the total amount payable and any terms under the agreement which imposes additional liability directly or indirectly is strictly prohibited by the Act. As such, I shall not be paying any collection fees.

    May I remind you that I wrote to you on [DATE] confirming termination of the vehicle, allowing 14 days for you to collect the vehicle. Should you refuse to collect the vehicle after the 14 day period has expired, I shall therefore cancel the remaining tax and insurance and return the V5C document to the DVLA informing them that you are now the registered keeper of the vehicle, and any subsequent liability shall rest with you.

    I would therefore urge you to arrange collection of the vehicle at the earliest opportunity to avoid any issues with the vehicle. Alternatively, I am happy to deliver the vehicle to a specific location provided that you confirm in writing to agree to pay all reasonable fees in doing so.

    Yours faithfully,

    [NAME]
    Last edited by R0b; 25th May 2017 at 09:27:AM.

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