Barclays partner finance

shopaholic2

Hi, we have a loan with the above, taken out for a car, which was written off in January this year....the insurance and the GAP paid some of the finance but not all, and so we were still paying our monthly amount to them.

As of April,after making a payment, we have heard nothing from them, either by phone or post, (most unusual, as they would text to say the payment was due), so we thought the loan must have been paid off...

STUPID!!!
Just received a letter from Mercers debt collections, claiming arrears of £467.16, or final settlement of £1317.86.

The letter says we must pay the arrears by the 21st September or the credit agreement will be terminated and the full balance will be payable.
At what point will they take us to court?
I am going to write and offer £200 by the 21st Sept, and then ask for a monthly payment plan....
Is this reasonable? Or will they ignore it and take us to court???

Many thanks

jon_boy75

they might not take you to court for that amount (just yet) but they will wreck your credit file

if a lender stops contacting you, it doesnt mean the amount you still owe is written off, it just means their communication has broken down, for whatever reason.

it seems such a shame so close to paying this off, that you're now with a DCA! Is there something we're missing?

standupguy

I am wondering why the gap product did not pay the full shortfall between the insurance pay out and the Finance settlement as that is why the gap product exists ?

PNPSUKNET

I was wondering also why the full amount wasnt paid by gap, have you asked?

tomitma

They pay the full amount of the value of the car, but they will not cover the interest that you are being charged on a loan, this is most probably what he still owes.

But what I cant understand, is why the insurance and GAP did not pay off the loan before they paid the OP., unless there wasent enough to cover it.

shopaholic2

Hi, thanks for the replies, beleive me we have had several months of trying to wrok out why the GAP didn't pay off the loan, seems to me thats the whole point of taking it on!!!
The insurers paid off a certain amount, (the value of the car) then the gap paid a bit, but hardly any really,so we were left with a shortfall.

Can anyone give me advice on which way to go now? What to write to say to them and what to offer, for now?

Many thanks

nelly12

shopaholic2 wrote: »

Hi, thanks for the replies, beleive me we have had several months of trying to wrok out why the GAP didn't pay off the loan, seems to me thats the whole point of taking it on!!!
The insurers paid off a certain amount, (the value of the car) then the gap paid a bit, but hardly any really,so we were left with a shortfall.

Can anyone give me advice on which way to go now? What to write to say to them and what to offer, for now?

Many thanks

Ok. Can you post the following for us to try and help.

Was you GAP either Financial Shortfall GAP or Return to Invoice GAP?

What was the invoice price of the car when you purchased it?
Was there any negative equity on your previous vehicle that carried forward into this deal?
How much was your insurance settlement?
How much was your finance settlement at that time?
How long had you had the car when it was written off?

Thanks.

shopaholic2

Hi thanks, I will do all of the above, but it will be monday, as I am working now til then, so please check back as I really appreciate all your help.

Thanks

shopaholic2

Hi, below is listed the info you asked for, its a copy of the list from TWG services ltd who dealt with the GAP....

Outstanding finance(inc negative equity) £4253.13
Less neg equty (which we do not pay) £778.53
= Outstanding finance on vehicle £3474.60
Less pre-accident value of the vehicle £2600.00
Payable value of claim £874.60

So as you can see, the insurance co paid £2600, the gap paid £874.60 and so now we have a shortfall on the finance.
I still dont undrstand why the GAP didnt cover all the finance
We had had the car 2.5 yrs at the time of it being written off.

PNPSUKNET

Im not 100% on this subject, but when ever people have tried to sell me gap they say it paid the intrest between what the insurance pay and whats left.

shopaholic2

PNPSUKNET wrote: »

Im not 100% on this subject, but when ever people have tried to sell me gap they say it paid the intrest between what the insurance pay and whats left.

That was why we took it out!! In the hope that it would pay off the finance should the worst happen!, Sadly, it didnt.