Car Finance Default Notice

kezzadoll

We traded in our car for a new one.
All the paperwork was signed with regards to the outstanding fincance on the old car to be paid off.
After 3 weeks we received a letter from the finance company regarding a missed payment.
We called the finance co. we explained trade in, but the 'reputable' garage had not paid the finance off. :mad:
The garage said cheque was sent but they will sort it.
Since then we are now 2 payments behind and have received a default notice. :mad::mad:

Will this default affect our credit rating?
If so, can it be fixed as not our fault?

I hope someone can help?

Thanx

[Deleted User]

while the default remains on file then yes it will,if they have made a genuine error then make sure they get the default removed asap.

ilovebanksMCMLXXXI

It will affect your credit rating, yes.

However, if the situation is as you have explained then gather all your evidence and I'm sure it won't be a huge drama to get the default removed from your file.

Best of luck

standupguy

kezzadoll wrote: »

We traded in our car for a new one.
All the paperwork was signed with regards to the outstanding fincance on the old car to be paid off.
After 3 weeks we received a letter from the finance company regarding a missed payment.
We called the finance co. we explained trade in, but the 'reputable' garage had not paid the finance off. :mad:
The garage said cheque was sent but they will sort it.
Since then we are now 2 payments behind and have received a default notice. :mad::mad:

Will this default affect our credit rating?
If so, can it be fixed as not our fault?

I hope someone can help?

Thanx

Your payment profile on the account will now show as 2 payments in arrears and once this is sorted it will bring this account back up to date and should show as "settled".

However, it is your responsibility to make the payments until the account is settled and therefore it is unlikely that this payment profile will be amended.

Some motor dealers delay settling outstanding finance as it gives them extra cash flow to play with. It is so important that anyone part exchanging their car that is subject to outstanding finance, follows up with the Finance company to make sure the dealer has settled the account.

You are at risk, if the dealer goes missing or goes bust, and you will have to settle the finance yourself as you are fully responsible until the account is settled.

You must sort this out asap with the Dealer and Finance company and get confirmation from the Finance company the account is settled.