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Clear car debt?

Hi people,

A good friend of mine is having difficulty repaying a loan she took out a few years ago to buy her car. I haven't got exact details, but I think she's paying somewhere in the region of £200 a month and has about £15000 left to pay off. She says that she was made to sign some agreement that means she can't pay off the loan all in one go. I was wondering - a) is this legal? and b) is there any way of getting around this restriction apart from bankruptcy/IVA?

I don't know the full details, but I suspect her creditor is fleecing her.

I don't know if perhaps I should have looked around elsewhere for answers, but not sure where to start / what to put into Google etc.

Any help would be appreciated! Thanks.

Comments

  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    A good friend of mine is having difficulty repaying a loan she took out a few years ago to buy her car. I haven't got exact details, but I think she's paying somewhere in the region of £200 a month and has about £15000 left to pay off..

    Wow - some car! I have never heard of a loan where you cannot pay it all off in one go, though there is usually a penalty for early repayment. She needs to look at her terms and conditions carefully as I suspect there may be some misunderstanding. Is her creditor a mainstream bank or some fly-by-night operator?
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • KingElvis
    KingElvis Posts: 4,100 Forumite
    A few years ago at £200 PM and still has 15k to go?

    You sure it was a car she bought and not a Eurofighter Typhoon or something?
    "We want the finest wines available to humanity, we want them here, and we want them now!"
  • Hmm... I think I might have the amount wrong. First I thought it might be an extra '0', but then she'd have it paid off pretty soon. Will check this out. Thanks for the help everyone.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Hmm... I think I might have the amount wrong. First I thought it might be an extra '0', but then she'd have it paid off pretty soon. Will check this out. Thanks for the help everyone.


    in any event you need to find out all the actual facts and read the T&Cs of the loan otherwise all we can do is guess
  • What do you mean "she was 'made' to sign an agreement"? Did they hold a gun to her head? Twist her arm up her back? Or was she just so eager to have the car, she was prepared to sign anything to get it?
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
  • Only the contract can tell you!
    Thinking critically since 1996....
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