Finance repossession

Ant84 · 13 September 2006 at 1:56PM

I bought my car in January of this year. My business was doing really well so had no problems making payments on it. By May, work had gone really quiet, and there was no way I was going to be able to afford it. I phoned BCT (my finance provider) to let them know this, and they refused to let me arrange anything with them in order to resolve the issue. I told them that if that was the case, then they'd have to come and take back the car as I couldn't keep up repayments at that time and I had more important things to pay out. The car was £17,000, and over 5 years, the total amount came to £33,000. I received a letter from them two days ago informing me that they'd sold the car for £10,850, and that my arrears were £22,150. They had previously told me that I didn't have their permission to sell it privately and make up the rest of the money myself to settle the agreement, so that was also a non-starter.

So to get this straight, I buy a car, own it for 4 months, they repossess it and now I owe £22,150 without actually owning ANYTHING even after I pay it (which I'm definitely not!)? Surely that's not right? It's not as if I was well behind with the payments - I'd missed one month's payment, and then I missed the following month's payment. A week after the latter was due, they were at my doorstep to take away the car.

They could have easily helped me here and got the settlement figure to end the agreement, but they wouldn't play ball, so why is it now me that has to foot a £22,000 bill, and still be left with nothing? If I still have to pay it anyway, then what was the point in having it repossessed?

Cheers.

Ant.

skanger · 13 September 2006 at 5:28PM

As i understand you have to have paid half of the agreement before you can say collect the car and walk away without owing anything. I suggest you dig out the T&C's that you signed when you agreed to the finance.

Having said that, at the end of the day they cannot get blood out of a stone, if you don't have the means to pay them, and let's face it, if you had to let them take the car back then I expect you don't, then they will have to take you to court to get a judgement in order that they can take recovery action. This will most likley end-up with you having to pay them at a level you can afford (assuming you attend the hearing and are trueful about your financial position)

I think I would, after reading the agreement to establish my position, attempt to negociate with them to reduce this figure, given deprication on cars, the price they got was probably fair, so I would look at it something like:-

17000 - The amount you financed
10850 - The amount they have recovered
6150 - The difference
1133 - The interest they could expect for the 8 months (10%?)

Total to settle £7283

Then agree a repayment plan around that figure.

At the end of the day, they are out of pocket, you borrowed 17k and to date have given them 10.8k back, so I think you will have to find a way to allow them to at least recover their losses.

I am sure that's not what you wanted to hear, but that's my view for what it's worth!

HTH

Saknger

Ant84 · 13 September 2006 at 8:15PM

Thanks, mate.

From what I've been told by Trading Standards and CCCS, it seems I'm going to have to pay the full 5 years worth of interest, which I think is unfair. I've no qualms about having to pay a reasonable amount to them, but £22,000 considering I only had the car for 4 months is absolutely scandalous.

poorbutgettingricher · 20 September 2006 at 3:23PM

sounds like quite a lot!

on an egg loan, 17000 paying back 550 a month, which is what ive calculated you are paying, would be paid back in 36 months, the total amount repaid being just under 19500 at 8.9% APR.

did your finance package include the servicing and insurance??? the cost of these is usually added at the begining and then interest charged on them, pushing the costs up even more.

i would take a personal loan to pay them off, to get rid of the debt, at lower monthly payments.

rog2 · 21 September 2006 at 7:06PM

Makes you sick, doesn't it? I am going through a similar thing with Black Horse. I paid regularly for two years - My business was suffering, I did not really want to lose the car - made the mistake of asking BH for help. Initially told that I could return car, by one gentleman, but this was, two weeks later, contradicted by the rudest, pushiest, arrogant woman imaginable, who informed me that since my loan was unregulated, over £25k, I had absolutely no rights whatsoever. I had asked for a 'payment holiday' but this person, who was certainly no ambassador for her native Wales, pushed and harrassed me for months, taking virtually every penny I had. Then - surprise, surprise, they repossessed the car. Four months later they sent me a bill for a 'shortfall' of £1700.00, which I disputed. I asked for a breakdown of this bill, including detailed costs, as is my right under DPA, but this was initially ignored. Instead I have received letters from DCA', threats of court action and continued harrassment.
Conclusion - the Motor Finance Industry stinks - I would now rather drive a Skoda Estelle than buy a car on finance.
Sorry for the rant - I hope you get sorted.

Ant84 · 7 December 2006 at 3:10PM

Anyone else got any advice on this?

Really don't know how to go about it. Their ridiculous charges for letters sent to me and the like were pushing up my payments by nearly £80 every time, and I just couldn't afford it. When I got in touch with them to try and remedy the problem, I got absolutely no assistance whatsoever, and they wouldn't entertain a payment plan or a short break from payments. It seemed like they couldn't wait to repossess the vehicle and leave me in big trouble.

I just feel like I'm in a big mess at the moment, I've just turned 22, and these defaults and debts are likely to prevent me from being able to enjoy myself and buy my own house etc, which is what I should be doing at my age.

Phoenix79_2 · 7 December 2006 at 10:24PM

Have you got a copy of the agreement? How is the finance laid out. I need some more figures.

It should be something like:
Total cash price: £x
Deposit: £x
Total to finance: £x
Charges: £x

What was the montly instalment amount? How many payments did you make? What was the car?

Xbigman · 8 December 2006 at 3:41PM

If there was PPI and you were self employed you might be able to make a miss selling claim and get that part plus the interest and charges on it refunded. It would take a chunk out of that 22k.
Regards

X

DramaQueen29 · 8 December 2006 at 4:52PM

Ive got a HP with Black horse, once i changed my account but they messed up and charged me because they hadnt set it up in time!
However Im worried at the moment the Bike costs £205 a month and Ive paid £3500 of a £10k loan and got 3 years to go was thinking about asking for a payment holiday know better now, I will do my best to hang on to it though.

Finance repossession

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free