Loan Company Lost Paperwork.

joeblack066

Hi , I have a vehicle on 4 years finance, I am 18 months into it. I am struggling to pay it, as my relationship broke up and I am on a lower wage, however I AM paying it, tough tho it is. I was made aware by the loan company 4 months into the loan that the dealer had not sent the paperwork in, in fact thay had lost it. They asked me to go and sign it again. As I had moved by then this was never going to be easy, and to be honest it went right out of my head until I drove past the dealers and saw that it had gone! The whole company has closed down. I am desperate for the loan company to give me a lower payment, but they have simply said if I do not pay the full amount thay will go to court for repossession. My question therefore is, how would they do this with no signed paperwork?? I don't want to get out of paying for the car, and I'd like to keep it if I can. I just want them to be a bit more helpful!

joeblack066

Anyone any advice please? Thx!

defender_of_the_weak

Is the car registered in your name or the loan company. was it previously registered to the company or loan provider. Whilst the monthly payments you have been making is some evidence of a contractual arrangement it is likely/possible that the actual finance was put together with the now defunct dealership Did you pay any form of deposit, was the car new?

I think the finance company is possibly on less than satisfactory grounds here. If your agreement was with the dealership then it will be for the administrators (assuming it is being wound up) to contact you as a debtor to the company.

Ask the company to show evidence of your personal liability to them

billywhizz

There's two things to bear in mind here.

First the fact that the loan company lost the papaerwork is kind of irrelevant as you have been paying the loan for the last 18 months and have their car.

Two If the company take you to court the judge will make mincemeat of them for not having a contract to support their claim. He/she would be very unlikley to grant them a repo order and will certainly fall in your side in the first instance in trying to help by reducing your payments.

All that aside, how much is the car worth and how muich is the loan. If the loan is bigger than the car is now worth then you may well be better off seeing if you can hand the vehicle back. If the company have not contract they would be unlikley to be able to pursue you for any shortfall as their is no contract to enforce. This is worth looking at as you have been paying up until now and you credit rating is still intact. Then get a new cheaper car and loan.

I would suggest you pay a prompt visit to your local CAB and have a frank discussion with them about your options.

joeblack066

Many thanks for both these useful replies. I will be waiting with baited breath as have been requesting copies of these original docs for 3 weeks now, lastly quoting it as my right under the data protection act (thanks MSE!) and nothing as yet. My next move will be to request the eason for the non compliance in writing, and see what they say! Thanks again. Debs

joeblack066

okay, next instalment, the HP Co. have sent some documentation......to my OLD address even tho they have my new address............and thia is entitled "Pre-Contract Information" It lays out the t&C's, the amount of credit, APR etc, but NOWHERE does it have the dealer's stamp and signature, dearlers details OR any signatires of mine. I think that this is just the Proposal for the credit agreement, and in no way constitutes a signed agreement. What does anyone else think?

jonesMUFCforever

I agree BUT you have been paying the loan for 18 months and you do have the car.
Technically they may be in breach but if it went to court I am sure that they would argue that you have entered into the agreement albeit by default.
If you did not want to enter into the agreement why have you made the repayments?
I am not a lawyer.

joeblack066

As I said in my first post, I am desperate for the Loan Co to give me a lower payment for a while, as my circumstances have drastically changed, so I am wanting to have some 'negotiating' power in my favour. I have no intention of not paying for it!

jonesMUFCforever

As I see it then you have two options.
1 Sell the car and pay off the loan.

2 Apply for another loan over a longer timescale (this will be costly to you in long term) to cover what is outstanding now.

Whichever you choose will be costly to you.Most car finance loans have the interest loaded at the front. I don't see that the finance company will offer you anything unless you default and then your options will be strictly limited as will have defaults on your credit file.

avi_3

firstly as you have been paying the monthly installments means you have entered into a contract by dfault. Now there are a few points you can argue with them.

There is no proof how long the contract was for, so you can clearly walk out by saying you have paid up the entire loan - if they say that is not true as there is X balance left - you can say that you have paid that as deposit initially to the dealer, and then they have to prove that you haven't, and they can only do this by asking the company which is now non existant for details or by providing proof of the contract you have signed(which they do not have).

Once they are cornered - tell them you have been nice enough to pay them all this time and request them to reduce the monthly payments as a good will gesture. try and speak to the most senior person you can get hold of.

joeblack066

Thanks, I am going to write to them tomorrow and will bear this advice in mind!