Advice please

Bocko

Hi everyone, I bought a car from arnold clark in march this year on finance and the company they used was GE Money. The loan was for £5650.50 with a further £2106.02 in interest charges. I crashed the car and my insurance paid GE Money the initial loan leaving me with the interest left to pay. I am now a student and recently I have lost my job and cant afford the repayments. I was told by someone to tell GE Money Ive lost my job and cant pay them and to cancel the direct debit since it is an unsecured loan. Could someone please give me some advice on what to do? Thank you.

~Brock~

How much did your insurance company pay them? Was this anywhere near the settlement figure on the loan? Did you have any GAP Insurance?

I wouldn't just cancel the DD and not pay them - this will probably screw up what I assume is an otherwise good credit rating.

They may be willing to make an arrangement on the difference, or even (seeing as its now an unsecured loan) reschedule the payments to make them more affordable.

~Beanie~

Bocko wrote: »

Hi everyone, I bought a car from arnold clark in march this year on finance and the company they used was GE Money. The loan was for £5650.50 with a further £2106.02 in interest charges. I crashed the car and my insurance paid GE Money the initial loan leaving me with the interest left to pay. I am now a student and recently I have lost my job and cant afford the repayments. I was told by someone to tell GE Money Ive lost my job and cant pay them and to cancel the direct debit since it is an unsecured loan. Could someone please give me some advice on what to do? Thank you.

I'm guessing that you didn't take out GAP insurance then?

You can tell GE Money that you have lost your job and can't afford the repayments and hopefully they will be able to come to some arrangement with you to get it paid off.

You can't just cancel the DD and tell them that you can't afford to pay anymore. It's not their fault that you wrote the car off and have lost your job, you owe them money and must repay them. If you don't, you will screw up your credit rating for years and could end up with a CCJ and possibly even bailiffs at your door.

Bocko

The insurance paid out £5180- the value minus my excess. Since then I have paid a further £630.96. I dont think there was GAP insurance, dont know what that is to tell the truth.

I didnt think it was wise to cancel it but I thought Id better ask anyway. Thanks for your help