frantic with worry, please help-will they reclaim my car?

jubaxt

Hi-I bought a car on hp from welcome finance.-usual story-got behind with payments but claimed back ppi from them which had been mis-sold.They said that once the amount owed was down to £1300 they would wipe off the loan.I have still struggled with payments due to other arrears on other accounts since we had family illness.I called them a couple of weeks ago asking for a final balance and to set up a payment plan now I am back on my feet.The agent said he would call me back the next day to sort this but he never called.

In the meantime I have checked my voicemails and discovered that an asset recovery office for welcome had left me a message last monday saying i had to call them by 5pm that day.I only found this message on saturday am and have been sick with worry all weekend.

The total amont payable was £8200-I paid a deposit of £2510 plus other payments of at least £3000.The amount which has to be paid ie-one third is £2700.

Please advise what they can do and what I should do

jubaxt

anyone?? xx

GeorgeUK

It depends on whether you want to keep the car or not.

Did you send anything in writing to them about requesting the final balance and repayment plan? If not, i'd send that letter by recorded delivery asap.

You could also do a voluntary termination of the contract if you didn't need the car. This would mean that you would only need to pay up to half of the original amount and you would not owe anything after this on the amount remaining.
http://www.insolvencyhelpline.co.uk/debt_factsheets/how_to_deal_with_hire_purchase_debt.php

Not too sure about implications of this going on your credit record or anything, but you could ask CAB for any info they could give.

Also have a look at the consumeractiongroup forum about HP and payment plans etc. I would make sure everything is in writing though as this will be the only proof you have of what is agreed.

standupguy

Don't let them intimidate you - I suspect an "asset recovery office" is just someone calling themselves that trying to exert some pressure.

Assuming this is Hire Purchase the car cannot be recovered without a court order as you have paid one third the HP price.

If the "get it down to £1300" is your PPI refund I would question that - the way they have done it seems ad hoc and not right?

George is right abiout the vt bit if you did not want to keep the car but beware you would also be liable for any arrears of payments to date - but you could argue a case of offset on the £1300 if the arrears were less than this?

Phone them Monday and see what they say?

jubaxt

hi-just a tad relieved this a.m:j


phoned the "asset recovery" office at 9 a.m bang on the dot as I was so worried.The guy who left the voicemail is out til 11a.m but i spoke with his colleague who has assured me that he will call me this am to set up a payment plan, so fingers crossed.

GeorgeUK

That's good news jubaxt but after you speak to them, make sure you get something in writing.