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  1. #1
    Senior Member Max's Avatar
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    How To Voluntarily Terminate your HP Agreement

    This thread will lead you through the voluntary termination process which is your legal entitlement under the Consumer Credit Act 1974 sections 90-103


    First some basic facts:

    1) Contrary to popular belief, the debtor is fully entitled to terminate the agreement at any time. It does not matter if he is in arrears or if he has not yet paid half of the total amount on the contract.

    2) The debtor does not have to fill in a form provided by the creditor in order to voluntary terminate the vehicle. It is quite acceptable for the debtor just to write a letter giving the creditor reasonable notice. (We will include some template letters for you to use later in the thread.)

    3) The creditor cannot charge a fee of any kind for this. He is compelled to provide this service by statute.

    4) You do not have to make any special arrangement to return the vehicle. They must arrange either a local drop off point, or for free collection.

    5) If no arrangements can be made for return of the vehicle, it must be made clear that a charge will be made against them to cover storage.

    6) The vehicle does not have to be in pristine condition when you return it. They cannot refuse the termination whatever the condition. All that is required by statute regarding any consequential charges, is that the goods were "reasonably well” looked after.

    7) It is true that they are entitled to charge for any work needed to return the vehicle to a reasonable standard. To this end, they may ask you to witness a condition report on termination.

    You do not have to attend anything, although it may be in your interests to do so. Sometimes these are carried out by an independent agency such as the RAC; other times it is one of the dealer’s employees.

    At the end of the inspection they will ask you to sign the report. Do not sign unless you agree totally with what is on it, and it is properly particularised. “A slight indentation on rear off side”, could land you with a bill for a new wing.


    8) To repeat you do not have to sign anything. They are compelled by statute to accept the car back the agreement is terminated.

  2. #2
    Senior Member Max's Avatar
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    Dear Sir/Madam,

    VOLUNTARY TERMINATION OF AGREEMENT

    Account No: (CAR MAKE/MODEL/REGISTRATION NO.)

    I am/we are writing to notify you that I am/we are exercising my/our right to terminate the above Agreement under Section 99 of the Consumer Credit Act 1974. You will understand that the aforementioned section permits the debtor to terminate the agreement at any time before the last payment is due. There is no restriction regarding the exercising this statutory right, particularly none in respect of any perceived arrears or monies due on termination

    I/we understand that I shall/we will be liable to you for the amount calculated under the formula in Section 100 of the Consumer Credit Act 1974. Please forward notice of any sums lawfully due for consideration and payment.

    The above agreement will be terminated 14 days from the date of this notice.**

    Please send me/us details of how the vehicle can be returned to you.

    You will be aware that statute prevents you from levying a charge for the recovery of this vehicle. Guidelines also state that if you require me to deliver this vehicle, it must be no more than a short (reasonable distance) from my registered address.

    Please confirm receipt of this request by telephone/fax to me/us on (your telephone number or fax number), or via email at (your email address).

    Yours faithfully,

    (Your Signature)

    REMEMBER TO KEEP A COPY OF LETTERS YOU SEND TO YOUR CREDITORS

    ** If you pay less than 1500 per year on your agreement you must give 1 months notice.

  3. #3
    Senior Member Max's Avatar
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    If you would like us to guide you through the inevitable ups and downs until the termination is successfully completed, please start a new thread here: Voluntary Termination

 

 

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