Car finance question - help for a friend
glosoli
Posts: 739 Forumite
Good evening all,
My friend told me today of a situation she finds herself in, and I would be grateful for any advice given.
She had taken out a PCP agreement for a car which was for her brother (long story!), and after around 12-18 months the car was handed back to the dealer as his circumstances changed and no longer required the car. To her understanding, the finanace was terminates at ths point.
However, she has subsequently received a letter, followed up by phone calls, from shoesmith solicitors, claiming costs of £350 to damage to the car. Both her and her brother are adamant there is no such damage, and feel someone is "trying it on".
The brother is reluctant to pay, and has advised her to ignore all contact from the solicitor.
My question essentially is, if the initial credit agreement has been satisfied, what can the outcome of any solicitor action be if she refuses to pay?
I have explained to her that the consequences of ignoring it could be far greater than she anticipates, so I am just looking for some more informed opinions on the matter.
My friend told me today of a situation she finds herself in, and I would be grateful for any advice given.
She had taken out a PCP agreement for a car which was for her brother (long story!), and after around 12-18 months the car was handed back to the dealer as his circumstances changed and no longer required the car. To her understanding, the finanace was terminates at ths point.
However, she has subsequently received a letter, followed up by phone calls, from shoesmith solicitors, claiming costs of £350 to damage to the car. Both her and her brother are adamant there is no such damage, and feel someone is "trying it on".
The brother is reluctant to pay, and has advised her to ignore all contact from the solicitor.
My question essentially is, if the initial credit agreement has been satisfied, what can the outcome of any solicitor action be if she refuses to pay?
I have explained to her that the consequences of ignoring it could be far greater than she anticipates, so I am just looking for some more informed opinions on the matter.
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Comments
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Hi,
You need to challenge this with the client, otherwise, although it's a relatively small sum of money, they could take you to court and register a CCJ against you.
Don't just ignore it and hope it goes away, it won't, write, don't phone, and demand proof of the damage, ask for photographs, it's up to them to prove any claim against you, it's not up to you to prove anything.
Don't ignore it though, it it comes to deadlock, your word against theirs, then they may drop it.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Ignore it and one day they may get turned down for something and feel rather embarrassed and regret not sorting the issue.
If they do take them to court and they ignore it's surprising how often it can come back to bite you from getting insurance quotes to future finance etc.Censorship Reigns Supreme in Troll City...0 -
I'm fairly sure the terms and conditions of the agreement will stipulate that the dealer has the right to charge for damage if they believe it exists.
£350 is frankly not a lot. That could easily equate to some very minor scratches or chips in the paintwork. In fairness to the dealer, even minor cosmetic damage like that can reduce the value of the car.
Anyway, her brother's advice is bad. Don't ignore the solicitor. In the worst case scenario, they could issue a CCJ order, and if she doesn't reply to the court in time, the case will be automatically awarded in the dealer's favour.
If your friend wants to fight it, they can call the solicitor's bluff. They may either back down as it's not worth the hassle, or issue court proceedings. If they issue proceedings, your friend will then have the chance to defend themselves in front of a judge. They may win. They may not.0 -
Good evening all,
My friend told me today of a situation she finds herself in, and I would be grateful for any advice given.
She had taken out a PCP agreement for a car which was for her brother (long story!), Oh dear...:-( and after around 12-18 months the car was handed back to the dealer as his circumstances changed and no longer required the car. To her understanding, the finanace was terminates at ths point.
However, she has subsequently received a letter, followed up by phone calls, from shoesmith solicitors, claiming costs of £350 to damage to the car. Both her and her brother are adamant there is no such damage, and feel someone is "trying it on". These are probably charges for damages in excess of the 'fair wear and tear' conditions in the lease contract.
The brother is reluctant to pay, and has advised her to ignore all contact from the solicitor. Brother is an idiot. But then again he's not the one that's going to have to deal with the problem or damage to his credit standing so why would he care?
My question essentially is, if the initial credit agreement has been satisfied, what can the outcome of any solicitor action be if she refuses to pay? It sounds like it hasn't. Worse case will be a CCJ, bailiffs, trashed credit history etc etc etc......
I have explained to her that the consequences of ignoring it could be far greater than she anticipates, You are correct so I am just looking for some more informed opinions on the matter.
Any car that is returned from lease will be inspected and the costs for any damage invoiced to you friend. As for the lease company 'trying it on', if neither your friend or her brother took photos as evidence of the cars condition when it was returned then you have no argument. The brother needs to pay up and refrain from placing his sister in a difficult situation.0
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