Help appreciated - newbie!

mandygrace

Hi everyone, this is the first time I've been on here and looking for advice.

I took out a hire purchase agreement with Direct Auto Finance for a car back in December 2002 and made the monthly repayments until December 2005 when I was faced with financial difficulties. I contacted the company and informed them of my situation and we agreed a reduced payment amount for 3 months whilst I got back on my feet. At the end of the 3 months I was no better off and spoke to them again and discussed my options, one of which was to return the car as I had paid sufficient amount to terminate the agreement in exchange for the return of my car in saleable condition. So this is what I did. The car was surrendered in May 2005 and that was that, or so I thought until I received a letter from First Beacon Legal services today with a Statutory demand for bankruptcy saying I owed them £7500 which includes £1.16 per day interest since May 2005! Having spoken to them they tried to confuse me by saying that I did in fact owe it and that because I had not kept up to the full payments up tot he date of surrender I'm liable for the full debt for the full term plus interest.
I've emailed a letter requesting they send me a copy of the original agreement and a statement of payments as well as a breakdown of how the amount has been calculated but is that enough? I have absolutely no experience in debt and really don't know what to do. I work in the financial sector so bankruptcy means that I would have to leave my job. As far as I'm aware the debt was settled when I gave back the car. Any advice or help would be greatly appreciated

Mandy

hampsterpoo

Try the CAB to see what they say