Arrghhh Noooo :(

blind-as-a-bat_2

LilyBart wrote: »

Hannah, I'm sorry. One of us should have spotted this when you posted your first draft SOA and warned you that it was a possibility. Bat, assuming they don't want to terminate Hannah's HP arrangement, how will she be paying for the car? Is HP an allowable expense, or is she expected to pay the installments from surplus income? I just looked back for Hannah's final SOA and couldn't find a completed version, just one she was going to tweak to avoid a deficit.
L x

It is an allowable expense if the car is proved a need not a want, as its a sucured loan so is not automaticaly included in BR. But it can be down to the OR to allow it

Its not quite that straight forward, the section in the OR tech manual on HP does have quite a few ifs and buts in it, as with everything else to do with BR

peachyprice

Lily, if the car is needed for work the OR usually lets you carry on paying.

Hannah, is there any way your Dad or someone could arrange to buy the car from the HP company if it comes to the worst.

chelseabun_3

Hi Hannah,

OhDear has a car on HP which has the same clause as yours. We phoned them anonymously before BR and they were very helpful (we were a bit shocked!!) They said they would look at the situation when the BR happened, but they would certainly look favourably at an offer to continue to pay or to pay the outstanding amount off, because they sell repos at auction and don't get the full value for them.

After BR OD phoned them and told them the situation, and they said that they were happy for me to continue to make the payments, so long as the OR agreed.

The only issue is whether the OR can realise some value from the car, in which case he may seize it, pay off the remainder of the HP and sell the car to pay a bit to the creditors. He can only do that if the car is worth more than is left to pay on it. We're still waiting to hear from the OR as to whether he has any interest in it. If not, we get to keep it!

Hope it works out for you! CBx;)

hannah9000

Well the remaining finance is £4068 ish and the car is worth about £4100 in a private sale. So no one would make money from auctioning it. It is indeed a need, for work, my elderly gran and dogs to vets (although Im sure the OR won't care about them!) I'm hopeful

chelseabun_3

That does sound hopeful, but be aware that the final decision is the OR's. OD is a driving instructor (so needs decent car), and he was still told by the OR that he might need to buy a cheaper car! (His is worth about 4.5k and is an 06 plate. You need a smart modern car to make a living at driving instruction, people won't learn in an old banger!)

So although it sounds like it might work out, don't count your chickens! We'll let you know what happens with OD's car as soon as we know. CBx

PINTACIDER

Hi hannah9000 , i had a van on hp and there was a 'may' / 'will ' clause in my contract regarding bankruptcy and indeed they did repo it albeit 2 months after my bk date. The OR had no interest as there was 18000 outstanding finance and the van only worth 11000 due to having a 100,000 miles on it ( only a year old !! ) . Its not always this way im sure maybe i was unlucky ? , i asked the finance company if i could keep it and carry on the repayments ( all upto date ) and they said if i had been a ltd company no problem they would have just swapped the contract over to the new ltd company but being a sole trader no chance !. . . . Good luck hope you get to keep it .

hannah9000

Thanks all, I will remain hopeful for now. I think it wouldn't be worthwhile for them to repo it because they won't get much for it (especially in todays market!) and I've always been a good payer, so surely they'd rather keep getting the interest for it? I do have a back up plan in that I will either hand it over to a family member (would this mean new credit application on their part?) or my partners dad has a KA I can drive around in...

imcognito

HI Hannah,

My car was repo'd yesterday, they refused to enter negotiations with us at all even though my DH was willing to pay the finance on it.

At the end of the day they have lost out totally as it has gone to auction and will probably get £3K for it there especially with car prices at the moment. Had they let my DH carry on paying for the next 3 years they would have got about £8K!!! I have NO assets at all so nothing is going to any of my creditors and I have no job so no IPA either so they really have lost out.

It took them 6 weeks from my BR date to come get the car, luckily for me my DH borrowed 3K off his parents and bought me a car so me and the kids are not carless during the week thank god as I am 8 mnths pregnant and have a 3 and a 2 year old!! No way can I walk the 2 miles and back to DS1's preschool!!

I would like others have suggested ring them and see if you could transfer the finance, it is in their best interest really as they will still get the money.

Good Luck hope you get to keep it

Im x

smokey112

Hi
Our OR allowed us to keep our car on finance after our BR - we had
only had it for a year.
Our agreement said the same - we never missed a payment - however
we had to hand ours back earlier this year due to increases to CSA payments
and has we had paid more than half we didn't have to pay anything else
Ang
x

blind-as-a-bat_2

To be honest the inclusion of a BR clause in HP agreemants that is then used where no arrears exist and where payment history has been perfect could be seen as an unreasonable move by the creditor. It would be intresting to see if they would be upheld in court if challenged.

The lender must make all terms and conditions fair as well as lawfull, so including a term that if used where an account is up to date is benefits or protects niether party, but could be of benefit to the creditor if applied towards the end of the contract is both daft, and possibly unlawfull

Just because they include it in the terms and conditions does not make them lawfull, and if a court ever agreed it could cost the finance houses a fortune.

I can see this being a possible legal minefield.