car credit back to haunt me!

aliyah

Hi all.
10 years ago, my husband and I took out car finance on a second hand vehicle with Credit Acceptance Corporation.

It was for around £6000.

Within weeks the car was failing to start, the exhaust had fallen off and there were major engine problems.

We refused to pay following the 2nd installment and wrote letter after letter to the garage insisting they took the car back as it was 'unfit for purpose'.

They refused initially yet after we refused to pay the next installment, the credit company seized the car.

We were never sent any further communication, there were no attempts to take payment and we thought the matter resolved. We were grateful for a lucky escape really!

Fast foward to last month and out of the blue, we received a letter (followed in quick succession by 2 others) ordering the return of £6705.00!

The latest letter threatens us with bankrupcy. These letters come from Maplins debt collection agency.

Can anybody please advise us?

Surely they cant chase us for this debt after all this time (even if it had been justified)??

We havent responded as we are frightened it may seem like acceptance of the debt.

Please help

rigger_john

The short answer is no they can't have the money. The debt is over 6 years old and in that time you have had no contact with the creditors.

The applicable law is the Limitations Act 1980

aliyah

Thank you rigger_john,

Do you suggest writing to them and pointing out this fact?

The continuing letters are causing distress and I would like to put an end to this.

rog2

Irrespective of any legal obligation that CAC would have had regarding the car's 'fitness for purpose', any 'debt' related to the original agreement would, as previously stated be 'Statute Barred' by now, and therefore 'unenforceable through the Courts'.

It looks as though 'Maplins' have purchased this debt for a few pence and are chancing their luck on the fact that you are unaware of the Limitation Act, 1980, and the protection that that act affords you.

Have a look at the following National Debtline link, and send them th template letter that you will find, therein:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act


Wasn't 'MAPLINS' the name of the Holiday Camp in 'Hi-de-Hi'? - Very apt. :rolleyes:

aliyah

Thanks also rog2.

Yes it does seem that Maplins have purchased this debt - it is pathetic that they prey on people like this. Your advice has been very helpful and certainly calmed me down

Hi-de-Hi! :rotfl:

KittyCat1

Aliyah - i was in a very similar situation to yours regarding car finance.

I CCA'd them as if they have no credit agreement they cannot ask you for payment.We certainly couldn't find our credit agreement as it was such a long time since we had the car,much like yourself where the car was returned to the company after a few months as it was unroadworthy so we stopped payments.

We also quoted the statute of limitations act to them as OP says and yes they tried it on for a bit but we stuck to our guns and they finally admitted they couldn't find any paperwork for the credit agreement and basically said their file was closed.
Template letter for limitations act:
From:
Name:
Address:
Postcode:
Date:
CCCS Client No:
To:
Creditor’s Name:
Account/Agreement No:

Without Prejudice

Dear Sirs
Ref
I do not admit any liability for your claim and will not be making any payment towards it, as it is now more than six-years since any cause of action may have accrued. Any claim would, therefore, appear to be statute barred under section 5 of The Limitations Act 1980 and any court claim will be defended on that basis.
In addition section 2.14 of The Office of Fair Trading Collection guidance states that it is unfair to pursue such claims where, as here, the creditor has made no contact during the relevant limitation period.
If, however, you have substantive evidence that your claim is not statute barred then please supply it to me within 21 days. If you are unable to provide such evidence please confirm that no further action will be taken against me.
Yours faithfully
(Signature)
(Print name)

aliyah

Thanks KittyCat1!

I expect you were as upset as I am when this old debt came back! Its not even as though the car was any use - we had it all of 3 weeks.

I will send this letter tomorrow. You say the debt company tried to dig their heels in - how did they try and argue against this?

Thanks

rigger_john

Aliyah, the DCA's do try to 'dig their heels in' however they don't argue their case as they don't have one to argue, they will just send letters claiming they are going to take court action or send representatives to see you or threaten you with baillifs, make annoying and threating phone calls ect.

Don't be scared by these tactics, you have the law on your side and they are human equivelents to small yappy type dogs, they make a lot of noise but no real bite, (sorry to any small yappy type dog lovers out there).

If or more likely when they start with these threats do not hesitate to report them, you will find appropriate letters here please use them to tell the DCA exactly where to get off.

Regards

PS never talk to these people on the phone, make sure everything is in writing and keep it all.