We will examine a consumer law built into all regulated personal contracts (PCPs) and leases — your right to voluntary termination (VT). The financial company can only recover the goods in certain circumstances. If the consumer has not yet paid a third of the total cost of the rent, the landlord can take possession of the goods at any time without taking legal action against the consumer. The use of the safety net Voluntary termination clauses in car finance contracts are there to protect consumers. But there is no doubt that some borrowers will take advantage of the clause to allow early termination of a PCP or HP if the figures are favourable. Hi stuart, I took a car on the financing for 11,000 dollars, but after 6 months and the payments of 1600 dollars changed my circumstances and I could no longer afford the car, I contacted the financial company that agreed to take back the car and then take back the «half rule» applied to my account, but now haunt me 600 dollars for the excess kilometers and for future payments of 6000 dollars (initial balance) plus 3000 dollars of interest ( again on the basis of the agreement in the agreement in the (6000 dollars of balance due), although it accepts the car back and applied half the rule on the account? how can they proceed for future payments totalling 9999.08 DOLLARS, excess mileage 606.68 USD, have 1600 USD of my payments plus a car worth at least 6500 USD, if they returned – so look for $18725.16 from me, if the amount borrowed was only $6588 and the total amount owed was $11,862.36 – none of this makes sense to return the car and go with nothing? I didn`t have to pay bail, they just released my financing contract for my old car. You have been waiting for me as well, so that is not the case until September 2015. The best way to get involved is to contact the financial company immediately and explain your situation. You can reduce your payments for a period of time and extend the life or increase subsequent payments, but you don`t have to. They always enter into a financing contract at their own risk. Good morning, Kev. Make sure your financing contract allows you to voluntarily terminate (usually it must be a PCP or HP); Your contract should have the necessary information.
The contract should also tell you exactly how much you must have paid to be VT, as the amount is not half of your financial maturity, but half of the total amount. If you have a PCP, it is often pretty close to the end of the deal and not halfway. With rental sale (HP), you can return the car before the advance if you have already paid at least half the fee or if you have the difference between what you have already paid and half the fee. This information explains what leases (HP) and conditional sales contracts are. It informs you of your rights if you want to terminate the contract and the lender`s rights if you do not pay.