BMW finance. Help needed !!!

Gav_E

Hi,
I purchased a BMW from a main dealer in 2007. The car was stolen in Feb 2008. The insurance paid up and left a shortfall of £300. I argued for months with the gap insurance about them paying the £300 shortfall and after 6 months they paid up. In the meantime, I was getting letters and calls from BMW finance for me to pay the £300 but I simply did not have and kept asking them to bear with me and I will pay it. In Nov last year I got a letter from a collection place, DLS i think, and they now want £3200!!! I sent them proof I owed BMW £340 I think it was. They have just been in touch tonight saying I must pay this £3200. What can I do?? I'm already on a DMP and could do without this.
Any help would be much appreciated. ( I hope this makes sense )
I forgot to mention. When the gap insurance paid up (£300) it just got swallowed into my o/d because the cheque got paid to me rather than go to BMW finance and I still couldn't afford to pay it

dacouch

did you buy the gap insurance from the bmw dealership on their advice? if so i would speak to them as the product they sold you took a long time to pay up what is in effect a very small amount. Without the delay the amount owed would be much less

Gav_E

Thats right. I bought the gap on their recommendation. Like I say, they took ages to pay up and when they did I was so far overdrawn the bank just swallowed up the cheque and I still couldn't pay the £300 off.
Just seems ridiculous how its been passed onto a debt company and now they have added an extra 0 !! Ok, I didn't pau up in time but I don't deserve this

tyllwyd

Have you asked the debt collection company how they came up with their figures? It does seem a huge increase on the original £300 in not more than a year. Were there any other arrears with BMW finance?

If you are on a DMP, are you organising it yourself or have you gone through a company? What do they say about it? If you suddenly owe an extra £3K, maybe you could get it added into the DMP - or perhaps it changes things, and you'd be better off looking at different options.

dacouch

It might be worth reading through the finance agreement terms and conditions to find out what extra charges they can put on and then comparing this with the debt collectors fees again ask for the debt collectors terms and conditions.

The amount it has increased is incredible and it may be difficult to demonstrate these charges are fair to a court of law

standupguy

Gav_E wrote: »

Hi,
I purchased a BMW from a main dealer in 2007. The car was stolen in Feb 2008. The insurance paid up and left a shortfall of £300. I argued for months with the gap insurance about them paying the £300 shortfall and after 6 months they paid up. In the meantime, I was getting letters and calls from BMW finance for me to pay the £300 but I simply did not have and kept asking them to bear with me and I will pay it. In Nov last year I got a letter from a collection place, DLS i think, and they now want £3200!!! I sent them proof I owed BMW £340 I think it was. They have just been in touch tonight saying I must pay this £3200. What can I do?? I'm already on a DMP and could do without this.
Any help would be much appreciated. ( I hope this makes sense )
I forgot to mention. When the gap insurance paid up (£300) it just got swallowed into my o/d because the cheque got paid to me rather than go to BMW finance and I still couldn't afford to pay it

It looks like when your insurer paid up it just put the account into credit. The shortfall of £300 on the settlement figure if paid at that time would have sorted it and settled the agreement

In the end you were paid the £300- instead of the Finance company - but the settlement would have increased from the £300 due as the agreement was still live and interest continued to be due each month.

As nothing has been paid, the finance agreement still remained live and the full remaining balance payable.

You will probably owe the amount requested but it it would be wise to ask for a full statement of account showing the amounts due and how accrued?

Gav_E

Thanks for all your opionions. I have recieved a statement from the debt company this morning that states the original payment by me was £359 to settle account after the insurance paid up but now stands at £3200 for me to settle the agreement now. I will take the statement to the citizens advice on Monday and see what they have to say. I called the cccs who is my debt management company and they seem to think I may have to pay it. It depends what I signed up for.
I will fight this because surely this cannot be right
Thanks again for your opionions

LinasPilibaitisisbatman

Gav_E wrote: »

Thanks for all your opionions. I have recieved a statement from the debt company this morning that states the original payment by me was £359 to settle account after the insurance paid up but now stands at £3200 for me to settle the agreement now. I will take the statement to the citizens advice on Monday and see what they have to say. I called the cccs who is my debt management company and they seem to think I may have to pay it. It depends what I signed up for.
I will fight this because surely this cannot be right
Thanks again for your opionions

It can be right

Your gap insurance agreement is seperate from the finance company and you cant use one to get out of the other without agreement.

You were liable for the £359 and should have paid it then sought reimbursement from your insurers. Your other option was to get BMW to agree to delay the payments til it was received.

You could not however not just stop paying as it suited yourself until the insurance came through.

and anyone who buys a BMW from a BMW dealer cannot be that skint.

barclaysguy

What it sounds like to me is that the finance company would have given you a rebate, but as you didnt pay the full settlement in time when they transfered the debt to a debt collection agency they are asking for the full loan that you would have paid if you didnt settle early. Im not too sure about law on this, i would refer to your default notice or liability statement that would have been sent to you before the defaulted your account.

I think you need to ask for a statement from bmw finance so you can see what they have done. But based on other hire purchase deals i have seen then this would seem to be the case.