being chased for PPI owed payments from Direct Auto Finance

Ms-Pacman · 15 January 2008 at 5:21PM

Hi, I'm hoping someone can advise me on a huge problem I have. Sorry this is long!

Background is bought car Vauxhal astra estate from Yes Car Credit / Direct Auto Finance about 5 years ago - quite expensive for what it was. I had no credit rating so this seemed to be the best offer my partner and I could get.
We did sign the PPI - as we were told it was a good idea to protect payments but no other advice was given to us.

3 years later - payments crippling £270 monthly on top of expensive car to fuel and Yes Car Credit agreed we could trade it for something cheaper. They then stopped trading and Direct Auto Finance advised us this was no longer an option.

After speaking to a few other car finance companies including DAF we decided our best option would be to voluntary surrender the car back to Direct Auto Finance (DAF) as we had then paid off more that a 3rd of the balance. DAF were happy with this and we had many conversations in which we have names, dates, etc of who we spoke to. They kept telling us that we would not owe any further balance AT ALL and we did ask about the PP insurance at the time.
So car given up, new car got from another company and all seemed well.

Nearly a year later we started to get letters from a debt collecting agency on behalf of DAB stating there was an outstanding balance for approx £1.7K. We queried this and although it took many months finally managed to get the details which showed it was for unpaid PPI. we were told by this company that although we surrended the car we would not have been able to cancel the insurance and that it was still owing. We have tried and failed to speak to DAF themselves and have now been told by this company that DAF ceased to trade in Dec 07 (Is this true?).

Its hit and miss with this debt recovery agencywith phone calls made and received - most are really unpleasant and threatening - but occasionally we get to speak to someone decent who at least tries to help and provide details. We have just been told all our conversations were recorded even though we never knew this or gave permission - this would be interesting to get taped copies as some of the nasty calls we got are very revealing about the tactics of this company.

So basically we are stuck, because DAF have gone we can't prove we don't owe the money although on one document we received it said vehicle repossessed which is totally untrue - we have another document which contradicts this as well so we can show we are telling the truth. but as for the PPI balance what can we do? After being told we didn't owe anything this influenced us to surrender it.

We had other choices at the time - 1 was to struggle on and keep paying as we owed only about £3k at the time - or 2 - the new finance we got with another company had offered to pay the remaining debt and take our car as a trade and put remaining difference on our current finance agreement so we weren't out of options totally.

Any advise would be really gratefully received as we are going nowhere with this and it is really stressing us out. Thanks

rosemahairy · 6 February 2008 at 3:43PM

i am in the same position i cancelled early as it was too much to pay for me then they said i owed £3400 ppi!!!! worst of it is the ppi was miss sold to me when i got the car the salesman told me it was the law i have it. I queried it because there was £800 motor breakdown insurance on it but the offer was 12month free warranty, mega con! anyway i wrote and cancelled about a week later after seeking info on it and that was it i thought until i gave car up. i too was told i was paid up to date then a while later got a letter.
I have been to trading standards about this and citizens advice. If you are decieved when signing a contract the contract is automatically nul and void. The ppi is also optional if you read the contract if you were not given the option like me its void. No doubt your sales advisors told you lies also so you signed up eh. CAB have written to the people who now own the yes car credit/ direct auto finance debts as far as i am concerned i owe them nothing. Trading standars have complaints about them coming out their ears they may be able to help further. Did you know if you dont respond in writing to someone regarding a debt (acknowledge the debt) after 6 years it is wiped. If a bailiff comes to your door also unless they have a court order tell them to get lost. Anyway go speak to your local citizens advice bureau there is a website which also may be of help called yes car credit complaints, its dedicated to the company from hell.

fightthemback · 6 February 2008 at 5:19PM

Hi Ms Pacman,

Listen Rosemahairy is right, these scumbags are chasing you for a debt which is null and void. You should be chasing them for the return of your premiums plus interest. Try the forum mentioned above, I believe they have legal eagles who have dealt with these robbers

LORNAD_3 · 13 February 2008 at 11:27AM

Hi I am also having major problems with Direct Auto Finance, chasing me for over £4,000 which I don't owe, I was paying over £60 per month in PPI, tried to claim back as yet to no avail, this group are a bunch of cowboys

rosemahairy · 13 February 2008 at 2:22PM

hiya they are barstewards aint they! have you sorted yours now im gathering not. give the fos a ring 02079640500 option 3 . 1. find out when direct auto finance became regulated by the FOS. 2 if the date of your contract is beyond their jurisdiction find out which body was regulating them at the time of your contract. they may be helpful like the guy i spoke to about welcome finace (some other barstewards) and offer to send a letter in advance to their head office to expect your complaint and telling them they must deal with it. im hoping that will carry some weight il keep everyone updated

LORNAD_3 · 13 February 2008 at 10:13PM

Hi

I contacted FSA today and Direct Auto Finance were not under their juristiction until January 2005, I also checked the Financial Lending Authority website and they are not listed there either. Like Ms-Pacman I voluntary surrendered my vehicle as I was made redundant from my job and could no longer afford the payments, I was also told there would be no further monies due by myself as I had paid over half the balance. Over a year later started getting threatening letters etc from DLC, I've been fighting this for 3 years now and i've only just recently discovered the PPI was mis-sold to me, I was told I would only get the finance for the car if I agreed to take the PPI as well, this was over £60 per month alone. I now intend to contact CAB and ask them to take up my case.

Ms-Pacman · 29 February 2008 at 2:24PM

Hi, as an update to be honest nothing has improved although I have found more errors.

I am also using the carcreditcomplaints forum and the consumer action to get as much help, and also make more people aware that that many others are in this situation.

The main progress is that I am now speaking to a solcitor called Stephensons who seem to have a lot of experience with DAF.

Problems I have found are:

1) The PPI which I'm sure we were told we had to take it, however when my partner was made redundant when we made a claim we were told we were not able to receive and that the claim was unsuccessful. I have since found out that the amount that YCC paid to the insurance company is about £2,000 less than what YCC charged me. I still have not received a copy of the PPI insurance document and schedule from DAF which I have been requesting ever since this came to light. I'm still not convinced YCC ever paid for this themselves.

2) The initial deposit I paid was put against the insurance side and not the car credit side which I have now found is incorrect. I have been told this is one of my strongest arguemesnt that the contract is void although I have not had confirmation from a solictor on this yet.

3) The car was VT, I had paid over 2/3 of the total amount and although I had fallen into arrears a few times, at the point of the VT we were up to date. DLC are now insisting that this was infact a repossesion nwhich seem to be confirmed on a statement they have provided showing all sorts of costs and confirmed this in writing. I have requested umpteen times a copy of the court order which is required for a repossesion but to date have not received anything. I have been advised by other people in forums that if DAF agree with this and cannot provide the court order I may be entitled for the full amount paid. I have yet to confirm this with a solictor so am not getting to hopeful about this yet. They will not confirm receipt of the letter I sent them for initiating the VT

4)DLC keep saying that DAF no longer exist - this was quite funny though as in the phone call I asked for the lady's name that I was speaking to. I then called DAF who confirmed they still existed then I called DLC back and spoke to this lady again. She got so cross and refused to take the conversation further. What I have found is that they don't like it when you are calm in conversations - I have done the upset and angry ones, but keeping calm is the better way - they get so angry and go round in circles each time ending the conversation by saying not prepared to take this conversation further.

I will keep this forum uipdated as to whether successful or not and any progress as I am so angry with DAF and DLC and understand how awful this whole situation is. If this is happening to you don't let them bully you and seek advice NOW. These forums are what have prompted me to look into this properly.

Ms-Pacman · 28 May 2008 at 1:27PM

As an update, had a call with the DLC director - called him by mistake as his number was on a letter to the solicitors who were initially acting on my behalf although to be fair he was friendly and called me back as promised even though I said was happy to deal with his staff.

DLC have gone a bit quite on the chasing side but its not them I am interested or going after, that is DAF!

Finding template letters is not difficult once you start to unravel DAF's mess they have made. What I am now hoping to acieve it to take DAF to small claims court for fraud of buying insurance for one price, charging interest on it then grossly inflating a further amount on it,
for example in my case
DAF paid £300 to NIG
DAF charged me over £4,000
work out the interest rate!!!!!!
Seems excessive? I hope the judge agrees.

Depending on the result of this, If I win, I would then ask for a correct fair amount of the PPI - I still say it was missold but that is not what I am arguing for which makes my case stronger.

Once deducting the unfair PPI this should put the balance in credit not owing when I VT'd the car. If this is correct I will then take my case further for taking the car from me when I owed nothing and either to return the car or repay what I paid for it. With evidence I have I am reasonably confident.

Can anyone give further advice on this as to be honest although I am confident with details I have obviously the whole proceudre is pretty daunting.

I am about to send a SAR to DAF as although have lots of details am looking for details on one particular phone conversation which I think they are trying to hide from me.

Ms-Pacman · 3 June 2008 at 1:33PM

has anyone been a similar situation and got this far yet?

Also I am trying to track down what happened to the car, whether it was sold on or not.

How can I find out?

rosemahairy · 9 June 2008 at 4:42PM

Ms-Pacman wrote: »

has anyone been a similar situation and got this far yet?

Also I am trying to track down what happened to the car, whether it was sold on or not.

How can I find out?

i AM IN VERY SIMILAR SITUATION. i HAVE TO PAY daf A TENNER FOR MY sar, WHEN IT CAME THERE WAS INFO MISSING THAT I HAD SENT THEM AND RECORDS OF TELEPHONE CALLS AS WELL AS LETTERS THEY SENT ME ETC MISSING. gOOD JOB I KEPT COPIES. I have had CAB liaising for some time who have now passed to the ombudsman as they just kept fobbing off. I am looking at a 6-9month waiting so in the mean time have contacted a solicitors firm and sent them my agreements see wht they say. My agreement has all same faults as you. Il let you know what solicitors say about it all. I am just intrigued what monies were paid to the actual insurance company as i have a total of over 3k in crappy useless insurances too. I have tried to find out but Criterion Assrance were wound up by the FSA in Dec 05 iv contacted them to see when all my paperwork etc would now be held

Ms-Pacman · 10 June 2008 at 12:43PM

Its NIG that hold most for DAF

being chased for PPI owed payments from Direct Auto Finance

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