Money gone missing!

hels1912

Hi all,

I don't often post on here but am always reading the threads. I think this is the most appropriate place to post my problem, but please feel free to tell me otherwise!

I sold my car on 8th August to a dealer who said he was going to pay off my finance, he gave me a letter to this affect (or effect?) and made a bacs transfer on 10th August to the finance / motor loan company's account.

The money hasn't yet gone through to the loan company and I want to check that I have done everything I can.

I've spoken to the dealer who double checked that the money has left his account and has been transfered to the correct sort code and account number for the loan company, and with my account number as reference. He is going to chase his bank. I have no reason to not believe him and so trust him! He has also offered to fax me a copy of his statement as proof.

The loan company have cancelled my direct debit and so won't be taking the money out of my account, however the next payment is still due on 15th August. I've phoned them and explained the situation (have been phoning every day to see if money has cleared!) and they have put a note on my file to say that dealer had transferred money on 10/08/06 but not rec'd by the as yet..

Will this effect (or affect! I get confused!) my credit rating through missed payment? Is there anything else I can do? I don't have the funds to pay the money due on 25th, and explained this to the loan company.

Thanks!
Hels

rog2

Be very careful here, I am getting alarm bells ringing.
Did you actually sell the dealer your car, or use it in p/x?
Get ALL possible documentation, including the offered statement, as the loan company is unlikely to be at all interested in your side of the story without documentary proof. As far as they are concerned, you still owe them money and they will chase it with every means at their disposal.
If they notify the Credit Reference Agency of a default, then yes it will affect your credit rating.

hels1912

Hi Rog2,
I sold it to them and I have a purchase note from the dealer plus a note stating he promises to pay the settlement figure.

I'll ask him to fax the statement to me.

kathfisch

I'd get any proof from him that he's willing to offer. Not because of mistrust, just because this is your money and your credit rating at stake. If the finance company have put that note on your file then hopefully the effect won't be too bad if it doesn't arrive in time. But really, its been long enough hasn't it?

Have you double checked that the transfer was done with the correct bank details? And that the dealer gave your account number correctly as a reference? If so, and it all went through as it should, then it must be a delay at the loan company's end, a delay in allocating the money that's come in.

I'd ask the dealer for any proof he can give you, and definitely get him to pester his bank for info and hopefully some kind of proof/assurance that it was sent correctly. Then you can keep querying with the loan company.

I'm afraid I can't give any more advice than that, I don't know if there's a way to track payments made through bacs but I assume the bank would be reluctant to bother or to give the info out. The dealer really has to be the one to chase them I guess, I hope he's willing to help you out!

rog2

hels1912 wrote:

Hi Rog2,
I sold it to them and I have a purchase note from the dealer plus a note stating he promises to pay the settlement figure.

I'll ask him to fax the statement to me.

Do that, and keep on at him until he sends it. Whilst I do not doubt for one moment that the dealer is in any way dishonest, there is always a temptation to keep the money in his account until the last possible moment. This happens in some of the largest companies (and banks!).

Was the car finance tied to the car? If so, it is not normally possible to sell the car without the permission of the finance company, and they would normally deal direct with the dealer.

hels1912

thanks Rog2 - that's reassuring to know he can't sell it until the finance is cleared. It was HP.

rog2

hels1912 wrote:

thanks Rog2 - that's reassuring to know he can't sell it until the finance is cleared. It was HP.

Please don't misunderstand me. I will try to clarify:

Was the deal done with the full knowledge, and authorisation, of the HP company? If yes, then you should have no problems. If not, then you were not legally in a position to sell the car as it, in effect, belonged to the finance company and would not have ben yours to sell. However, most finance companies would give permission to sell, on condition that the account was settled by the proceeds of the sale. I am not sure, but, unless you had a previous agreement, with the Finance Company, that the dealer pays them directly, then you may still remain liable. That's why you need to get as much documentary evidence as possible.
I hope one of the legal brains will come along and put you right.
Cheers mate!

hels1912

Rog2 - The dealer had contacted the finance company for a settlement figure, which they faxed directly to him, and they have notes on their file to this effect so, yes, I would say the the sale was done with knowledge and approval from the finance company.
However I think I am still liable?
thanks for all your help!

rog2

hels1912 wrote:

Rog2 - The dealer had contacted the finance company for a settlement figure, which they faxed directly to him, and they have notes on their file to this effect so, yes, I would say the the sale was done with knowledge and approval from the finance company.
However I think I am still liable?
thanks for all your help!

It sounds like you are covered, but you need that promised statement, showing actual date of money transfer, which can then be confirmed by banks.
If the settlement figure was issued direct to dealer, and dealer sent them confirmation that he would pay this figure, then this is an agreement between dealer and finance company. Once you have that statement, you should be able to prove that you are no longer liable.

hels1912

thanks, I've left him a message so hopefully I'll get that from him as soon as he calls me back! fingers crossed.

hels1912

Dealer was really helpful, faxed me a copy of his statement as proof he had paid, and also asked his bank to put a trace on the money.

Anyhow, I phoned the loan company today and the money has finally gone through! yay!

thanks for your support )