repossessed car

twiuggy123

My son took out a loan on a car. He was made redundant and went on the dole. He offered a smaller repayment which was accepted but due to financial hardship this was not always paid on time. The commpany then insisted on taking back the car although there was a bit of bodywork damaged on it. My Son begged to keep the car but the lady was vile and said she would rather scrap it. He offered to drive it to them but she would not allow this and sent someone to collect it and have billed them for £250. They have not paid even a half of the loan. Can this be allowed. He reckons he must still owe £6000. He has had to borrow money to buy a car as he has 4 small children that need to go to school. Can any help?

4743hudsonj

Sorry to sound harsh, but what do you expect? He cant afford to pay even a reduced payment plan for his loan, of course they can take it back and make suitable deductions.

Its unfortunate but one of the risks to a loan.

You should suggest he visits the debt free wannabe board for some advice on this and how to gets out of debt in general.

EDIT: Didnt mean to call it HP as OP has already stated it a loan, with the car as security i assume.

toffe

ignore hudson.

was the loan a hire purchase agreement? or a log book loan secured against the car?

if it was a hp agreement had more than one third of the total amount payable been paid, the one third includes any deposit paid directly to the car dealer.

you may have some recourse, it would help if you told us who the lender is aswell.

twiuggy123

Thanks. It was a car loan and will find out the name of the firm. Please can you explain about the third?

4743hudsonj

twiuggy123 wrote: »

Thanks. It was a car loan and will find out the name of the firm. Please can you explain about the third?

Was is provided as part of purchasing the car, or was it a separate loan, subsequently used to buy the car.

toffe

twiuggy123 wrote: »

Thanks. It was a car loan and will find out the name of the firm. Please can you explain about the third?

if the loan was a hire purchase agreement it would likely be regulated by the consumer credit act 1974.

if thats the case then if you had paid one third of the total amount payable under the agreement then the creditor can not, legally, repossess without a court order.

to be certain i need to know exactly what type of loan agreement this was.

start with the company's name then if you don't still have your copy of the agreement we will request one to find out exactly how much the 1/3rd threashold was and if you may have paid over that amount.

do you know how many years you took the agreement out over and how long you were paying it for and what, if any, deposit you paid?

twiuggy123

Hi it was a car loan and is Park Finance of Swansea. Although the car had body damage it was perfectly ok. The manager said she would have it scrapped and they would still have to pay for it. They have had a demand for the £250. they had put it on third party due to having no money and she said they should have had it on fully comp as part of agreement.

twiuggy123

It was Park Finance from Swansea. Going to check out the agreement.

toffe

it sounds like hp, if you can't find the agreement i'll post up a template cca request for you later, you'll ned to get the agreement to work out exactly where you stand before we can decide on the besy course of action.

let me know whether or not you can find the agreement.

toffe

any news on the agreement??

gordikin

Surely if the car is damaged the finance company have the right to recover their losses on a subsequent sale from the purchaser?