Defaulted on car loan

selinadelvecchio

I had a Jaguar car loan for 36 mths which ended in Dec 09. As i was in arrears of a few hundred pounds before Dec 09 - Jaguar passed the finance onto a debt agency. At the end of the car loan with Jaguar i was going to hand the car back to them as i had paid most of the debt off. However the DCA Link Finance inform me as that i had defaulted on the Jaguar finance loan and my account was still in arrears at the end of the 36mths. My original loan agreement was devoid as Jaguar had passed my account onto them.

In the original finance agreement with Jaguar i could pay 36 payments then hand the car back or keep it and pay a sum of 6000 pounds to own the car outright.

Link are telling me as original agreement with Jagaur is now void i have to pay Link finance 6000 pounds although i told them that Jagaur never told me before they passed my account on that i would be liable for the 6000 pounds still left to pay. I did say that i'm quite happy for them to take the car away and i pay the few hundred in arrears. They inform me that i'm liable for 6000 pounds and that they will take the car away to auction and any difference in the auction price i have to cough up.

I find this very unfair that Jaguar never told me that i would be liable to pay the final 6K to the debt agency.

Is there anyway i can fight this?

PNPSUKNET

you would of had to paid the balloon payment anyway, so yes

standupguy

selinadelvecchio wrote: »

I had a Jaguar car loan for 36 mths which ended in Dec 09. As i was in arrears of a few hundred pounds before Dec 09 - Jaguar passed the finance onto a debt agency. At the end of the car loan with Jaguar i was going to hand the car back to them as i had paid most of the debt off. However the DCA Link Finance inform me as that i had defaulted on the Jaguar finance loan and my account was still in arrears at the end of the 36mths. My original loan agreement was devoid as Jaguar had passed my account onto them.

In the original finance agreement with Jaguar i could pay 36 payments then hand the car back or keep it and pay a sum of 6000 pounds to own the car outright.

Link are telling me as original agreement with Jagaur is now void i have to pay Link finance 6000 pounds although i told them that Jagaur never told me before they passed my account on that i would be liable for the 6000 pounds still left to pay. I did say that i'm quite happy for them to take the car away and i pay the few hundred in arrears. They inform me that i'm liable for 6000 pounds and that they will take the car away to auction and any difference in the auction price i have to cough up.

I find this very unfair that Jaguar never told me that i would be liable to pay the final 6K to the debt agency.

Is there anyway i can fight this?

The basis of this is whether the original agreement was terminated by jaguar due to the amount of arrears.

Do you have paperwork terminating the agreement?

selinadelvecchio

Thanks guys for your replys.

I do have a final letter from Jaguar to say they have passed my account onto Link finance but that is all they said. Nothing to the effect that i would be liable for the 6K baloon payment as well when they passed my account on.

I feel a bit miffed off by this as i would of made doubly certain that i could of kept engaging Jaguar until the end of the contract and then happily hand the car back. Certainly leaned my lesson that if your account is passed onto a third party then the original finance agreement is nullified and there is little i can do.

selinadelvecchio

No i would not of paid the baloon payment as i was going to hand the car back at the 36 month point anyway. I got to 34 months and went into arrears. But the carpet was pulled from beneath me without Jaguar informing me of the consequences of me becoming liable for the baloon payment if my account went into arrears. Thet slyly forgot to tell me this.

CLAPTON

what does your contract actually say about going into arrears?

write a letter of complaint to Jaguar finance

go see CAB for detailed advice

phone nationaldebtline.co.uk (a free advice centre)

Emmzi

what is the car worth if you sell it?

selinadelvecchio

probably around 6K i guess but Link Finance are going to go for a Court order if i refuse to accept their terms.