batzy he's just proved my point for me. go onto that website and then click onto appendix 2, that link will take through to an example copy of what i said before. this is what i was on about, providing all payments up to date and u have paid half, u should have the right for a voluntary termination.

TERMINATION: YOUR
RIGHTS
You have a right to end this agreement. If you wish to do so you should write to the person authorised to receive your payments. We will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £5217.76.
If you have paid at least this amount plus any overdue instalments you will not have to pay any more providing you have taken reasonable care of the goods.]

this is the example on there.

and now look at appendix 3 which shows u a letter to how to put it in writing for the voluntary termination

To:

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.

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

Please confirm receipt of this request by telephone/fax to me/us on (insert your telephone number or fax number).

Yours faithfully

Your Name

by the way not many people know about it purely for the reason finance companies dont want it back because that means its their property that they have to deal with once they agree for u to return it.

Miss_red:

batzy

its up to u who u believe. u will see for yourself, look in your credit agreement and look under the terms voluntary termination, that section will tell you what you must meet to agree this arrangement with them, looks like you have been paying for the car for a while so just check, theres no harm in checking as those documents are legally binded to you and the car and the finance company, im not giving you false hope but a suggestion to get you out of this obstacle, try to meet all the payments for the time being. dont miss it, it will make u get credit harder.

when your voluntary termination is confirmed and is ready to go ahead they will come and collect car thats it end off, i know this for a fact because in our criteria for giving customers hire purchase we had to change it so that we had to decline anyone with more than 2 voluntary termination on their credit report.

i wont argue anymore with that other person but batzy just read through your copy of the credit agreement and see for yourself.

good luck.

Grow up, it is a forum for people to give advice, not to dominate others input. If it is hire purchase then the car belongs to the finance company of course. If he cannot meet the repayments he cannot meet the repayments. What is it with sad people (i.e. miss_red) on internet forums who spoil for arguments? You were obviously stupid to expect me not to reply to you after what you posted.

On a more relevant note, here is a decent website regarding Hire Purchase Debt: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_how_to_deal_with_hire_purchase_debt

batzy

its up to u who u believe. u will see for yourself, look in your credit agreement and look under the terms voluntary termination, that section will tell you what you must meet to agree this arrangement with them, looks like you have been paying for the car for a while so just check, theres no harm in checking as those documents are legally binded to you and the car and the finance company, im not giving you false hope but a suggestion to get you out of this obstacle, try to meet all the payments for the time being. dont miss it, it will make u get credit harder.

when your voluntary termination is confirmed and is ready to go ahead they will come and collect car thats it end off, i know this for a fact because in our criteria for giving customers hire purchase we had to change it so that we had to decline anyone with more than 2 voluntary termination on their credit report.

i wont argue anymore with that other person but batzy just read through your copy of the credit agreement and see for yourself.

good luck.

Miss_red:

im pretty sure most lenders by law have to use voluntary termination, it will state in the documents that providing such and such amount has been paid and the car is in full working order and you have kept the payments up to date you can return the vehicle and you pay no more, i have had a look at a couple of agreements, black horse finance do it for sure because i dealt with a customer who had done it and returned the car twice (shows on credit report), santander consumer finance do, southern finance do, barclaycard do,

there isnt many more hire purchase companies out there.

please read through the sections until you get to the voluntary termination section, by law they have to put it in, you dont need to know this but underneath voluntary termination it will tell you about the repossession rights, something along the lines of they cannot repossession your vehicle if you have made such and such amount.

i think sdio has got a bit confused.

you need to write to them, they will then respond whether if ur legible for them to take the car, once they do take it, you will have nothing left to pay and you owe nothing ,as never yours until you have completed all the payments,

dont forget you have to be half way through the agreement and have met their criteria,

sdio is thinking when the car gets repossessed then the car will go to an auction site where they will try and get as much money for it, and when the car is sold at a shortfall (not enough to cover what the person owes the finance company) they will register the rest of the debt against you.

i do documents on a day to day basis so i know what they say as i didnt just deal with 1 company, i dealt with several.

I am not 'a bit confused' as I am dealing with this problem myself and Trading Standards have given me this information. You cannot sign up to a Hire Purchase Agreement and voluntarily withdraw unless it has not been executed or you have the money to pay off the agreed term, which is stated in the agreement. Stop giving this person false hope! These contracts are awful and need investigating because once you're in, you're (on the whole) tied in. Like you said, you have to be half way through to meet their criteria and if this user is not half way through they are not in the predicament to do this!

Another way is to not make payments, not recommended, however, the finance company will retrieve the car and it will badly damage the customer's credit scoring. I mentioned this because as the user doesn't seem to be half way through their agreement, then selling shortfall may be the only option to avoid higher expenditure.

Doing 'documents on a day to day basis' and dealing with your 'several' companies is irrelevant.

Batzy- Be firm with these people, they only want you to keep the car and make the payments, they do not want to hear when things get tough. Contact trading standards as to what your next move should be. Good Luck!

im pretty sure most lenders by law have to use voluntary termination, it will state in the documents that providing such and such amount has been paid and the car is in full working order and you have kept the payments up to date you can return the vehicle and you pay no more, i have had a look at a couple of agreements, black horse finance do it for sure because i dealt with a customer who had done it and returned the car twice (shows on credit report), santander consumer finance do, southern finance do, barclaycard do,

there isnt many more hire purchase companies out there.

please read through the sections until you get to the voluntary termination section, by law they have to put it in, you dont need to know this but underneath voluntary termination it will tell you about the repossession rights, something along the lines of they cannot repossession your vehicle if you have made such and such amount.

i think sdio has got a bit confused.

you need to write to them, they will then respond whether if ur legible for them to take the car, once they do take it, you will have nothing left to pay and you owe nothing ,as never yours until you have completed all the payments,

dont forget you have to be half way through the agreement and have met their criteria,

sdio is thinking when the car gets repossessed then the car will go to an auction site where they will try and get as much money for it, and when the car is sold at a shortfall (not enough to cover what the person owes the finance company) they will register the rest of the debt against you.

i do documents on a day to day basis so i know what they say as i didnt just deal with 1 company, i dealt with several.

sdio:

If it is a Hire Purchase Agreement then you cannot return it I'm afraid. I know that in some contracts if you miss 2 repayments they will demand the car back (possibly through the Courts) and it will badly affect your credit rating & future lending potential. But if you cannot afford it, you cannot afford it.

I think when you return the car, they sell it on at an auction, not the dealership's site. They do not get the proper price of the vehicle, therefore you are forced to pay the rest because they sold the car 'on the cheap'.

You do need to be more assertive with these people, keep it to the front of your mind that they do not want the car back under ANY circumstances. It really is You vs Them. Contact Trading Standards and tell them all about your predicament, they should be able to help in someway, they have access to a lot of information. Have all your documents to hand when you do call them, their website is: http://www.tradingstandards.gov.uk/

Good Luck!

I forgot to state that this is not the case for all HP Agreements. Like the user above mentioned, you may not have to pay anything once you return it.

If it is a Hire Purchase Agreement then you cannot return it I'm afraid. I know that in some contracts if you miss 2 repayments they will demand the car back (possibly through the Courts) and it will badly affect your credit rating & future lending potential. But if you cannot afford it, you cannot afford it.

I think when you return the car, they sell it on at an auction, not the dealership's site. They do not get the proper price of the vehicle, therefore you are forced to pay the rest because they sold the car 'on the cheap'.

You do need to be more assertive with these people, keep it to the front of your mind that they do not want the car back under ANY circumstances. It really is You vs Them. Contact Trading Standards and tell them all about your predicament, they should be able to help in someway, they have access to a lot of information. Have all your documents to hand when you do call them, their website is: http://www.tradingstandards.gov.uk/

Good Luck!

hi there as i used to underwrite some policies in car finance i know a little,

you should grab your documents out and have a look to see if the agreements show any information about voluntary termination, basicly what that is providing the agreement is half way through, and you have been good with your payments then you can return the car to them and you nothing, because this car is their property until you finish paying it. you have to write to them (make sure you keep a copy and recorded post) to say you would like to return the vehicle to them under the section of voluntary termination. this is a right which will state in the agreement,

i know you have missed 1 payment but it will depend whether if they will accept it, if it doesnt say anything about late payments in the voluntary termination then you should be ok.

what they will do is ring you and arrange something so they will come and collect car, once they have then you have nothing to owe on it.

as far as the credit profile side of things, it will say settled however it will point out voluntary termination so in the future if you get car finance perhaps some finance companies will decline you because you have a habit of this or they will still continue.

hope this helps a little

You will need to write to them, however you will not be able to terminate the agreement. Repo is about it although they wont write the debt off.

I purchaced a car from perrys on finance (gmac) on a five year term. the thing is i might be losing my job and wont be able to keep up the repayments for the car. Where do i stand? could i return the car to perrys or gmac and have the debt wiped off or am i just stuck with it?? ive tried contacting gmac but to no avail, i just keep getting fobbed off stating they will ring me back, but they are the first to ring is i have missed a payment (once in two years) please help..