Got car loan for brother - always late in paying!

Forris

A couple of years ago I took out a loan with Barclaycard Car Finance on behalf of my brother (yes, I know - I was trying to show some faith in him after he had been through a bad time).

He has had a few missed payments over the period, resulting in penalty charges and blackmarks on my credit file (which I am trying to rebuild after I screwed it up a year ago). Although payments have been brought up to date, he continues to make late payments. The payment date is the 23rd of each month, at his request, but as he currently has no bank account the payment comes from my account and he pays me cash before it is due.

I have, stupidly, made allowances for him in the past but now my wife and I are really getting p*&$%d of with his continued late payments despite his promises that it will be on time next month.

Do I have any legal recourse in order to force him to pay up on time, or am I just stuck with having made a bad decision tho help him in the first place?

withabix

You haven't got any legal recourse, because YOU took out the loan, not him.

Very silly thing to do, but you know that already.

Take the car off him, sell it and pay off the loan - that's basically your only recourse.

CHR15

Why are you getting blackmarks on your file if he is late??
Surely you have the DD coming out of your account regardless of when he pays you.

I guess there is a reason he couldn't get his own finance.... because they all knew he wouldn't pay.

I agree about taking the car back... but the reality is, he will keep it and you will pay for it.... if not, a major family falling out is coming. You will come over as the one in wrong because of your constant demands and pestering (I know it is wrong, but that's what happens!)

There is a very long thread about lending to friends and family.....

Forris

Thanks for the replies. I know that the debt is legally mine, and to start with he was making the payments fine, but he has been a right pain for the last year or so and just doesn't care wether he pays on time or not.

I may be able to get the car back but this will not be enough to settle the debt. I also need to make sure that the legal title is signed over to me, so that he cannot then just report the car stolen.

I'm sure I read of a similar case somewhere that ended with a court order being granted for the money to be taken from the persons wages. I'll have to spent some time googling today I think.

standupguy

Forris wrote: »

Thanks for the replies. I know that the debt is legally mine, and to start with he was making the payments fine, but he has been a right pain for the last year or so and just doesn't care wether he pays on time or not.

I may be able to get the car back but this will not be enough to settle the debt. I also need to make sure that the legal title is signed over to me, so that he cannot then just report the car stolen.

I'm sure I read of a similar case somewhere that ended with a court order being granted for the money to be taken from the persons wages. I'll have to spent some time googling today I think.

Legal title, if the agreement is hp, remains with the Finance company until all payments are made.

Assuming it is hp, from what you say you may well have paid over the half hp amount which will entitle you to vt (voluntary terminate ) the agreement and return the car to the Finance co with nothing further to pay.

That way, you get out of the debt and the hassle and your brother walks away from the negative equity

Forris

No, the finance is not HP, unfortunately. It is a loan.

patman99

Does your brother work?.
If so, how does he get his wages?. Most employers pay direct into a bank account these days.

Forris

Yes, he does work. I believe his wages get paid into his girlfriends bank. I gave him the info a few months ago re getting the Co-op Cashminder account, which he tells me he has done. He keeps saying he will set up a transfer direct fom his account to ours but this never happens. I've always said that I will help him with any info or advice that I can if he is having any problems, but that I cannot afford to pay his debts for him.

Zelie

1) You need to meet up with him at some point and walk him into the bank/onto the computer and set up the transfer. Don't tell him that's why you are meeting, just meet and tell him that's what you are both doing. Which isn't going to stop him just cancelling it five minutes later but there's only so much you can do on that front.

2) You need to change your thinking and accept responsibility for this. Your brother does not have a loan. YOU have a loan. That's how the loan company think and that's how you need to think. Thinking of it as your brother's loan which you are merely processing is a big problem. So regardless of whether or not your brother gives you money in any given month you must still pay off YOUR loan. To do otherwise is harming your own credit rating.