Car Finance

michael1983l

Ok my brother had his car written off a few months ago and his insurance was short 4k of the finance agreement because he got spanked on the APR because his credit history is a shambles. Anyway it turns out his GAP insurance won't pay out and the finance company is chasing him for 4k.

Anyway here's the interesting bit, the agreement is due to end well past the date of the car being over 10 years old and the car at time of write off was past this. Does this make his agreement unenforcable because Car HP agreements arn't supposed to exceed 10 years by law?

If so how can he go about informing the company he will not cover the rest of the cost because of this?

He has by the way paid well past what they originally lent him.

~Brock~

michael1983l wrote: »

Anyway here's the interesting bit, the agreement is due to end well past the date of the car being over 10 years old and the car at time of write off was past this. Does this make his agreement unenforcable because Car HP agreements arn't supposed to exceed 10 years by law?

Which law exactly?

Go on....admit it. You've just made this up haven't you? :rotfl:

Daveyj2009

Know how he must feel after bus wrote my car off insurance paid out £3500 less than settlement figure, unfortunately i ended up having to bite the bullet and pay up even tho' accident was not my fault.

michael1983l

~Brock~ wrote: »

Which law exactly?

Go on....admit it. You've just made this up haven't you? :rotfl:

Nope, but thanks for your useful input :rolleyes:

Q. How old can the car be?

Generally, the car must be not more than 10 years old at the end of the finance term. Payment terms are restricted according to the age of the car. Maximum terms are typically as follows::

• < 3 years old - 54 months
• 3 - 5 years old - 48 months
• 5 - 7 years old - 42 months
• 7> years old - 36 months

http://www.creditconnectuk.com/faq.aspx#9

ILW

What was the term of the agreement?

Ostinato

michael1983l wrote: »

Nope, but thanks for your useful input :rolleyes:



http://www.creditconnectuk.com/faq.aspx#9

I know, sorry I can't really help, but I must say it irritates me when you get people like brock posting rather obnoxiously rather than even attempting to help.

The only input I can really give - is that my parents had a similair situation where a company contacted them after about 10 years saying they owed this random money... Not sure how it all worked out, but I know in the end they didn't have too pay it back

michael1983l

ILW wrote: »

What was the term of the agreement?

Its a HP agreement

4 years terms
car is 10 years old this month and the credit agreement expires in june 2010

~Brock~

The link posted points to one finance company's underwriting criteria. They seem to have decided not to want to finance older cars. Fair play to them, its their money.

Are you saying that someone who wants to borrow money against a classic 1950's Ferrari can't do it because of UK consumer lending law?

I simply gave the appropriate answer to what was frankly a daft question.

On a slightly more meaningful note, why wouldn't the GAP insurance pay out - some GAP insurers DO have a maximum age clause in their policies (nothing to do with the law) - could be that this policy wasn't sold correctly.

michael1983l

~Brock~ wrote: »

The link posted points to one finance company's underwriting criteria. They seem to have decided not to want to finance older cars. Fair play to them, its their money.

Are you saying that someone who wants to borrow money against a classic 1950's Ferrari can't do it because of UK consumer lending law?

I simply gave the appropriate answer to what was frankly a daft question.

You will find it very difficult to get an HP agreement on a classic car. Go check any HP dealer and you will find the same terms. It is set into the consumer credit act 1974. If you don't know something it is better to keep your mouth shut and have people think you are stupid than to open it and remove all doubt.

~Brock~

michael1983l wrote: »

It is set into the consumer credit act 1974.

:rotfl:

Which section?

michael1983l wrote: »

If you don't know something it is better to keep your mouth shut and have people think you are stupid than to open it and remove all doubt.

I completely agree with you.

~Brock~

......~Brock~ patiently taps his feet to Killing the Name by RATM while Michael frantically Googles the consumer credit act.....

Listen mate, I honestly didnt think you were serious, but seeing as though you appear to be then you could at least credit me with a bit of knowledge about such matters.

If you want some help about your brothers position then firstly lose this idea about the credit agreement being void because of the age of the bleedin' car and tell me about the GAP policy as asked earlier.