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Re: Voluntary termination of hire purchase
[MENTION=82411]Michellec80[/MENTION], please see the draft letter below
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ADDRESS
ADDRESS
ADDRESS
POSTCODE
[DATE]
Dear Amanda,
Agreement Number:
Vehicle Registration:
Re: Voluntary Termination of the Hire Purchase Agreement
I am writing further to your letter dated 4 March 2016 containing a summary of charges which is allegedly owed to [COMPANY NAME].
I am concerned about the fact that your letter suggests that I owe [COMPANY NAME] circa £340 relating to outstanding arrears, collection fees and insurance. For the reasons set out below, it is denied that any sums referred to in your letter is owed to [COMPANY NAME].
£173.25 for outstanding arrears
As your letter indicates, I have already paid at least one half of the total amount payable as required under the Consumer Credit Act 1974 (the “Act”). The letter appears to imply that despite paying at least half the total amount payable, I am also liable for a further payment of one month. As you may be aware, the Act limits my liability to half of the total amount payable under the agreement and does not include any sum payable as a penalty, compensation or damages for breach of the agreement (see definition of “total price” under s.189). I contacted you in writing on [DATE] exercising my right to terminate the agreement in accordance with s.99 of the Act. The Act itself does not stipulate any requirement to give a period of notice other than to notify you in writing, which I have done. As such, I have no further liability for any additional payments under the agreement nor am I obliged to do so.
Collection charges
For the reasons set out above, I am not required to pay any collection fees.
£161.29 for insurance policy
Having read the terms and conditions of the hire purchase agreement, it seems quite clear that the cost of the insurance policy has been incorporated into the total amount payable thus paying one monthly amount which covers both costs of the vehicle and insurance. As pointed out above, The Act provides for a statutory liability which is limited half of the total amount payable. Because [COMPANY NAME] have tied the vehicle and insurance costs together under the hire purchase agreement and not separately, I am therefore not liable for the remainder of the insurance policy.
May I remind you that the agreement has been terminated from the date of giving [COMPANY NAME] notice and you are now required to collect the vehicle.
Your letter states that the vehicle must be returned to [COMPANY NAME] to complete the voluntary termination. Unfortunately, this is incorrect as there is no legal requirement for me to (a) return the vehicle to you and (b) once the vehicle is returned or collected, the voluntary termination is complete. As far as my legal obligations are concerned, giving notice to terminate the agreement is all that is required.
As the agreement is now terminated, I request that you contact me within the next 14 days to arrange a suitable time to collect the vehicle. If you refuse to collect the vehicle or the 14 day period has expired, I shall have no choice but revoke the remaining tax and insurance on the vehicle, and notify the DVLA that [COMPANY NAME] is now the registered keeper of the vehicle. Any subsequent liability from that date forward, shall be borne by [COMPANY NAME]
If you disagree with any of the above, particularly the alleged outstanding charges, please could you state the sections of the Act to which you are referring to.
I look forward to hearing from you.
Yours sincerely,
[MENTION=82411]Michellec80[/MENTION], please see the draft letter below
---------------
ADDRESS
ADDRESS
ADDRESS
POSTCODE
[DATE]
Dear Amanda,
Agreement Number:
Vehicle Registration:
Re: Voluntary Termination of the Hire Purchase Agreement
I am writing further to your letter dated 4 March 2016 containing a summary of charges which is allegedly owed to [COMPANY NAME].
I am concerned about the fact that your letter suggests that I owe [COMPANY NAME] circa £340 relating to outstanding arrears, collection fees and insurance. For the reasons set out below, it is denied that any sums referred to in your letter is owed to [COMPANY NAME].
£173.25 for outstanding arrears
As your letter indicates, I have already paid at least one half of the total amount payable as required under the Consumer Credit Act 1974 (the “Act”). The letter appears to imply that despite paying at least half the total amount payable, I am also liable for a further payment of one month. As you may be aware, the Act limits my liability to half of the total amount payable under the agreement and does not include any sum payable as a penalty, compensation or damages for breach of the agreement (see definition of “total price” under s.189). I contacted you in writing on [DATE] exercising my right to terminate the agreement in accordance with s.99 of the Act. The Act itself does not stipulate any requirement to give a period of notice other than to notify you in writing, which I have done. As such, I have no further liability for any additional payments under the agreement nor am I obliged to do so.
Collection charges
For the reasons set out above, I am not required to pay any collection fees.
£161.29 for insurance policy
Having read the terms and conditions of the hire purchase agreement, it seems quite clear that the cost of the insurance policy has been incorporated into the total amount payable thus paying one monthly amount which covers both costs of the vehicle and insurance. As pointed out above, The Act provides for a statutory liability which is limited half of the total amount payable. Because [COMPANY NAME] have tied the vehicle and insurance costs together under the hire purchase agreement and not separately, I am therefore not liable for the remainder of the insurance policy.
May I remind you that the agreement has been terminated from the date of giving [COMPANY NAME] notice and you are now required to collect the vehicle.
Your letter states that the vehicle must be returned to [COMPANY NAME] to complete the voluntary termination. Unfortunately, this is incorrect as there is no legal requirement for me to (a) return the vehicle to you and (b) once the vehicle is returned or collected, the voluntary termination is complete. As far as my legal obligations are concerned, giving notice to terminate the agreement is all that is required.
As the agreement is now terminated, I request that you contact me within the next 14 days to arrange a suitable time to collect the vehicle. If you refuse to collect the vehicle or the 14 day period has expired, I shall have no choice but revoke the remaining tax and insurance on the vehicle, and notify the DVLA that [COMPANY NAME] is now the registered keeper of the vehicle. Any subsequent liability from that date forward, shall be borne by [COMPANY NAME]
If you disagree with any of the above, particularly the alleged outstanding charges, please could you state the sections of the Act to which you are referring to.
I look forward to hearing from you.
Yours sincerely,
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