Loan Company wants it both ways !!

edited 30 November -1 at 1:00AM in Loans
4 replies 658 views
SquernSquern Forumite
1 Post
edited 30 November -1 at 1:00AM in Loans
My son, unable to afford car payments, asked the loan co to take the car away, which they did.
They now want £3000 to settle the outstanding debt.
If I pay the outstanding, surely I am entitled to ask for the car back?

I suspect they will not be able to return it as they will have sold it on.
Therefore, can I say that I will not pay the debt since they cannot return the car?

If the loan co has their way, they will get all of the money they should have got for their sale of the car, plus the car.

This can't be right - can it?

Any legal eagles out there?

Replies

  • Hi

    It sound like what they have done is what some companies call a voluntary surrender. I would ask to see figures, but they have probably sold the car at auction, removed the amount they got from your son's accoun and h is responsible for the balance. If this is the case then chances are they are fully entitled to ask for it - did you son sign any documents when he handed the car back
  • DavidHMDavidHM Forumite
    481 Posts
    How much was the original loan?

    Over how long? How many months, how much per month?

    How much deposit had he paid?

    Was there any final payment at the end of the loan?

    Were there any arrears when the car was handed back?

    Without knowing the answers to all of those questions it's impossible to say if it's right or not.
    Debt at highest: September 2003 - £26,350 :eek:
    Debt now: £14,100 :rolleyes:
    Debt free day: October 2008 :beer:
  • mountainofdebtmountainofdebt Forumite
    7.8K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    certainly sounds as if the car sold for less than the outstanding balance.

    This happened with my a car that my late FIL had - noone wanted the car (and hence the debt!) and when the car was sold, there was about £2.5K outstanding which had to come out of the estate.
    2014 Target;
    To overpay CC by £1,000.
    Overpayment to date : £310

    2nd Purse Challenge:
    £15.88 saved to date
  • How can you expect to get the car back when this was used against the debt? -
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