Car debt help

littlened

I bought a car back in 2001 for £4500. After a couple of month I lost my job and informed the finance company I could no longer afford the car.....I could't insure the car because I couldnt afford it, and during the time it took for the car to be collected, it's tyres were slashed and the wing dented. I suspect it was a neighbour because they were not happy about the car sitting there all the time.

The car was collected, and I waited for a statement to come through the post to show how much the car had been sold for and how much I owed....I never received that statement. I think I might have received a letter asking for some money just before I moved house, but at the time I had loads of personal problems and just put debt problems to the back of my mind (bad idea I know).

Anyway, I received a letter from a debt collection agency about 4 month ago asking for £8500. I sent them a letter saying I was more than willing to make a monthly payment providing they could send me a statement showing exactly how much the vehicle sold far and how the £8500 was made up. I few weeks later I got a letter direct from the finance company which said something along the lines of "50% off, pay your balance now to get this fantastic offer". I thought it was strange that I'd got a letter from a collection agency, I sent them a letter asking for a statement, then I get a letter from the finance company....maybe a coincidence.

Last month I received another letter, this time for the same thing, but from a different collection agency. I rang up to see why it was a different company chasing the debt, they said they were responsible for debt now on behalf of the finance company. I explained everything over the phone, saying how I wanted a statement before I would pay. I received a letter today saying they've received a response from the finance company, could I ring them so they could tell me about it.

I'm in the middle of writing a letter back saying I would like all correspondance to be written, and not over the phone.

Someone once told me that if there is no statement showing how much the vehicle was sold for and how the debt is made up, then I don't have to pay. I know it's never going to be this simple, but I'm just wondering where I stand now....if they can't prove how much the vehicle sold for, where do I stand?

Hopeful1

I don't know the ins and outs of car finance, but i would certainly say you are entitled to a statement of account. It seems strange to me that they are sending letters collecting such a huge amount and then offering 50% reductions.

I would ring Trading Standards and talk it through with them. You are right to keep everything in writing too. The evidence may come in handy. At least i would get a proof of postage for each letter you send, but better still, send recorded or special delivery.

friar

What an amazing story!
Sounds dead dodgy to me. Can I ask name of finance company?
Finance companies will allways send cars to auction,so that they can say it was a fair price.You could ask BCA and Manheim auctions the two most likely,and largest,how much car was sold for.

littlened

The finance company was Welcome finance

GeorgeUK

Is it possible that the debt is statute barred?

If you have made no payment towards a debt for 6 years (5 in Scotland) and not acknowledged the debt in writing during that time then the debt may be statute barred and unenforcable. Do you know the date that the last payment was made? Do you know when you sent the letter and if you acknowledged the debt as being yours, or did you just ask for a statement to be provided?

ticklepenny_2

Hello,

You can request all activity on a debt using the letter below, all you need to do is enclose a £1 postal order along with it. To be honest Car finance is such dodgy grounds it may be worth seeking legal advice www.communitylegaladvice.org.uk have helped me in the past, and their advice is free. I hope this helps.

*tickle



The Creditor
PO BOX 107
Creditorville
UK1 234


Date

Dear Sirs or Dear Sir / Madam
Ref. Client Name
Agreement Account or reference
Number
Balance £ 00.00
Address YOUR ADDRESS
INC
POST CODE

I write to formally request the following information regarding the above agreement. This agreement is a regulated agreement and therefore my request is covered by Section 77/78/79 of the Consumer Credit Act 1974. The consequences of your failure to comply with this request are also detailed within the same Act.
Please provide in writing, by return;

• A copy of the original signed agreement
• A copy of the terms and conditions that apply to this agreement
• Notice of assignment [ if applicable]
• Full itemisation of all charges & costs applied to this account to date
• Confirmation of the current balance.

In consideration of the above conditions I enclose the mandatory fee of £1.00 and respectfully request that you comply with this request within the prescribed timescales. Please also note that this request has been sent by registered post.

Yours Faithfully
Name