Can we give them the car after being threatened with a CCJ

mariamaria2107 · 8 October 2017 at 9:01AM

Morning Everyone,

We currently have a car on finance the balance ya around £3,700 (originally c£10,000), however both me and my partner got in abit of a mess with finances and defaulted in the agreement. I called to make an agreement with the third party collecting on bahalf or ford originally stating that I would pay x on this date x on this date etc as we really wanted to keep the car. The call lasted a good while and I asked the lady if payments were able to fluctuate, I even said, so we could pay nothing for one month and pay double another abd she exaplaibed that provided the outstanding balance was received within 12 months we were free to make payments how we saw fit.

After being told we had 12 months to clear the balance with different payment amounts and when etc we agreed to leave the car finance for now, and concentrate on paying off bills that had interest and would benefit us most financially from paying off sooner (eg credit cards etc)

We received a court summons on Friday which has scared the life out of us to be honest, I’ve called the company, they were unhelpful and rude, said they never agreed anything with us and we have just not paid anything. I asked them to listen to the call where there woman clearly explained I could do this and they refused. I asked for a transcript and they said I needed to write it. After 3 future calls to them, they’ve agreed to listen to the call and will get back to me within 10 working days.

We’ve worked so hard to pay things off to try and get ourselves financially back on track and begin to improve our credit that a CCJ now would just be so disheartening, I’m not going to hold my breath that they come back and say yes out employee did agree this with you so I know getting them to withdraw the CCJ request is unrealistic. The hearing is in 6 weeks and we don’t have the ability to get the best part of 4K in that time, so is it possible for us just to hand it back to them?

We’ve thought about it and that would be the easiest solution for us, but I don’t know if we would be able. Could anyone help?

Thanks

molerat · 8 October 2017 at 9:21AM

Handing the car back depends on the type of finance and depends on the car being secured on the finance. If it is then you can hand it back but that will likely be at a massive cost. If the finance has defaulted then the VT option will not be open leaving only ET and you will be held liable for any shortfall against what the car receives at auction plus costs. More information needed.

mariamaria2107 · 8 October 2017 at 9:28AM

I’m not sure what it’s called but it’s an agreement where there is no balloon payment at the end. We put the deposit down, and paid monthly for 48 months then the car was ours.

System · 8 October 2017 at 9:59AM

So it was standard secured finance and not a PCP or lease deal then. Voluntary Termination is no longer an option. You can hand the car back but in that situation it would likely be sold at auction and you would be pursued for the shortfall between what it fetched less any costs and what the outstanding balance is. Those costs will include admin fees, the auction house fees plus transportation costs for collecting the vehicle and delivering it to the auctioneers which can be anything north of £1 per mile.

As for the third party agreement, I find it pretty hard to believe that they agreed that you could make no payment for 12 months and I think you may have got the wrong end of the stick and that a minimum payment was expected but you could overpay if you chose. Certainly that is how pretty much every agreement with a debt collector works and if you say you're not going to pay them for 12 months they're round to take goods away.

Nebulous2 · 8 October 2017 at 1:06PM

What's the car worth? Is the loan secured on the car?

Selling the car might be an option, as long as the buyer paid the finance rather than paid you. Companies such as We buy any car will give you a baseline for price, allowing you to then negotiate elsewhere. A trade sale to a company or garage will get less than a private sale, but is likely to be the only way that will work.

DCFC79 · 8 October 2017 at 2:08PM

Hi OP have you looked at your sending and cut back where you can ?

How did you get into the mess, was it just a combination of different bills at the same time.

[Deleted User] · 8 October 2017 at 2:34PM

Is this finance or HP?

iolanthe07 · 8 October 2017 at 3:25PM

Bedsit_Bob wrote: »

Is this finance or HP?

HP (which is one type of finance), as explained in post number 3.

Can we give them the car after being threatened with a CCJ

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