Hire purchase credit agreement - car

birchr75

I signed a 2 year agreement in August 2008 for a car purchase at the end of which I hand the car back (it has a guaranteed value at the end of the 2 years equally to the outstanding credit at that point). The last monthly direct debit collection was made in November 2008. HSBC Vehicle finance has no record of my vehicle, even though I have twice spoken to them, they have sent me the tax disc and also arranged for a service! They are telling me that despite the fact that they have sent me no statements since August 2008 and the non collection of monthly premiums is there fault, I owe them 14 months worth of premiums. I fear that I am going to have to pay them this sum or get a credit blacklist? I suppose it is my fault for not picking up the payment going out but the first few did and I assuming everything was OK. Does anybody know where I might stand or where I could get some advice please?

Poolie

Unfortunately it is looks like you will have to pay although HSBC Vehicle Finance should be make to answer questions why the direct debit was not called for.

They should have written to you as well. Have you moved or changed the car to private plates.

birchr75

No I have not. They tell me that they changed computer systems in November 2008 and my details were not 'migrated' over to their new system.

They have offered to add 14 months worth of outstanding months over the remaining 6 month term but it sends my month amount from £338 to £1126!

Tixy

I'd agree you will probably have to pay but if they have admitted it was an error on their behalf I would try to negotiate the deal.

Yikes £1126 per month. Maybe you could get them to agree to ;et you pay the remaining balance over 12months rather than the 6 it should be (but without them charging your more in interest hopefully!)