Car loan company gone bust, what now?

skylarkuk

My husband went to the local office of welcome finance yesterday and the office was all open but a handwritten notice was on the wall saying the staff were having a day off. He went back today and there was a woman shredding papers and she told him all the staff had been sacked and the company had gone bust. He took a photo of one of the boxes she was shredding as evidence.

I am not sure where this leaves us. We had two payments left on our car which we were actually attempting to pay off yesterday. The woman told him he was welcome to pay cash, yeah right. Theoretically the car still belongs to the finanace company, we are happy to pay off the balance but who do we pay? Can they repossess our car? Will they sell the remaining debt with an even higher interest rate?

I am very worried right now, finanacially we are getting ourselves sorted after a few bad years, we are self-employed and went through a bad time which we worked hard to resolve. Now business is good and our credit score is going back up but we fear this could set us back after all our hard work and determination to set things right. We did notice they haven't updated our credit record for some months and the balance on experian is higher than we owe, however we do have a letter stating the remaining balance.

System

They don't appear to have gone bust but they are no longer taking on new loans so probably no requirement for local offices

Payments can still be made by looking here for details

KingElvis

They've not been lending for yonks, in fact, they are now in default themselves and cannot cover the PPI they've sold.

Have no fear though, someone will be after your cash.