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Repossesion or Voluntary

SPANIEL36
SPANIEL36 Posts: 1,905 Forumite
My friend has a vehicle currently on finance. He ran into difficulties earlier this year and fell behind with the payments. To cut a long story short, the finance company issued court proceedings and he was taken to court for repossesion of the vehicle. At the time there was 1000 pounds arrears. Before the actual court date he managed to pay this 1000 pounds and the finance company said they will request a suspension on the order providing that he doesn't default again. Now it gets complicated, whilst waiting for the court date he was involved in a RTA and sustained whilpash injuries so he tried to claim on the insurance on the hire purchase policy. 3 months down the line they have turned down his claim saying he's only got low back pain and its not covered (its much worse than this, they've played down what the doc report has said). He cannot afford to pay the outstanding payments on the vehicle anymore

He has paid well over the two thirds of the amount that he loaned. Can he voluntary give up the vehicle now and have no come back or will it be repossessed as there was a suspended order before?? If he can give it back, will he have to pay the ;ast third of the loan outstanding?

he is really strressed so any advice please??

Comments

  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    The answers to these questions will depend upon the type of finance your friend had. The only way for him/her to find out is to look at the terms and conditions of the agreement he/she signed at the time the vehicle was bought.
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • SPANIEL36
    SPANIEL36 Posts: 1,905 Forumite
    i know a lot of agreemants have a claus that if you pay two thirds of the amount loaned then you can voluntarily give up the vehicle and not pay the rest. He was just wondering if he could still do this even though he's defaulted on a suspended repossesion court order
  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    The fact that he has defaulted on a repossession court order will not help his case, though obviously there are special circumstances. He really needs to read through his T & C's very carefully to see whether he would in any event be allowed to return the car and not have to pay the outstanding debt after paying back two thirds. He could also just try asking the finance company.
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • SPANIEL36
    SPANIEL36 Posts: 1,905 Forumite
    i'll get him to ring them tomorrow, if you dont ask, you dont get as they say
This discussion has been closed.
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