Welcome Car Finance - Car Written off - BIG problem

wolvesfanuk

I am hoping someone can advise me here.
Basically I bought a car for my girlfriend in June 2008 through Welcome Car Finance. I don't know whether or not it is an HP agreement or Credit Agreement. The documentation states at the top that is a Credit Agreement regulated by etc etc but makes reference to HP within the jargon.
Here is the problem. A few weeks ago a drunk driver went into my girlfriend who was stationary in a garage forecourt. The car is a write off. As the car was on finance and she needs a car there was no option for us other than to take the insurance payout and get a new one - it is essential for her work that she was one. Also, the shortfall insurance was invalid as the car was neither registered in my name nor was I personally insured - which means it was missold because they knew from day one that it was not going to be in my name.
Thing is i'm nervous now. Have I broken the law doing this? The other problem is that I am in masses of debt and I can't afford to pay them now so i'm in arrears. They are aggresively hounding me for money I haven't got, they don't even know about the car yet and i'm scared senseless. I am undergoing pyschotherapy for along term mental illness and the stress of all this is not helping.
Can anyone advise me on what to do?

Fiddlestick

Here is the problem. A few weeks ago a drunk driver went into my girlfriend who was stationary in a garage forecourt. The car is a write off. As the car was on finance and she needs a car there was no option for us other than to take the insurance payout and get a new one - it is essential for her work that she was one.

I'm afraid I'm not a lawyer, but can you not claim your financial loss from the other party's insurer?

wolvesfanuk

Fiddlestick wrote: »

I'm afraid I'm not a lawyer, but can you not claim your financial loss from the other party's insurer?

I don't know to be honest. She is sueing the bloke for injuries but it's not gonna stop Welcome coming after me

custardy

wolvesfanuk wrote: »

I am hoping someone can advise me here.
Basically I bought a car for my girlfriend in June 2008 through Welcome Car Finance. I don't know whether or not it is an HP agreement or Credit Agreement. The documentation states at the top that is a Credit Agreement regulated by etc etc but makes reference to HP within the jargon.
Here is the problem. A few weeks ago a drunk driver went into my girlfriend who was stationary in a garage forecourt. The car is a write off. As the car was on finance and she needs a car there was no option for us other than to take the insurance payout and get a new one - it is essential for her work that she was one. Also, the shortfall insurance was invalid as the car was neither registered in my name nor was I personally insured - which means it was missold because they knew from day one that it was not going to be in my name.
Thing is i'm nervous now. Have I broken the law doing this? The other problem is that I am in masses of debt and I can't afford to pay them now so i'm in arrears. They are aggresively hounding me for money I haven't got, they don't even know about the car yet and i'm scared senseless. I am undergoing pyschotherapy for along term mental illness and the stress of all this is not helping.
Can anyone advise me on what to do?

so buy a cheap car with some of the insurance money
and the rest to keep welcome finance off your back

ILW

Sorry but the fact that the car is written off is nothing to do with Welcome. You may have a claim regarding mis selling of gap insurance, but it will not be much.

wolvesfanuk

We've already used the insurance money to get a car. We had to act quick as they took the courtesey car back as soon as they said what they'd pay out. Given that she travels 100 miles a day I wasn't prepared to get her a banger. Long and short...I have nothing left.

ILW

If she is working, can she not pay something towards the car herself?

custardy

wolvesfanuk wrote: »

We've already used the insurance money to get a car. We had to act quick as they took the courtesey car back as soon as they said what they'd pay out. Given that she travels 100 miles a day I wasn't prepared to get her a banger. Long and short...I have nothing left.

so how much was the new car?
theres a big difference between a banger and a cheap car
if you have no money left then you had better sort it out
buying a new car when you couldnt cover the finance was foolish

wolvesfanuk

Hold on hold on...I came for help not personal attack. I suffer with enough mental health issues as it is...I don't need that kinda thing dragging me further down. Advice/help is all I want.

My partner could never afford to pay for a car herself. The money paid out wasn't anywhere near enough to cover the finance with Welcome. The car bought in replacement was 3k not that it's really the issue.

I just wanted advice as per the original post

irishjohn

Unfortunately if you have failed to meet the loan repayments they will be coming after you shortly. You need to read the agreement and contact Welcome immediately to ensure that you don't hit any further problems. Is your girlfriend also in debt? It may be that if neither of you can gather the money to clear off the finance agreement for the car which has been written off then you may need to sell whatever you can lay your hands on, including the replacement car, to clear your debts or accept the conseqences.

wolvesfanuk

Thank you John for the advice. Both of us are in the same boat to be honest. Another thing i'll add is that her child is registered disabled, another reason why a car is imperative.
John what are the absolute consequences bearing in mind it was her insurance, it's her new car?