Outstanding Finance help

eaglesham

Hi All

Can anyone shed light on if a finance company can chase you for the interests on an agreement after you have actioned a VT!?

I returned a vehicle to the finance company a couple of years back ( about 3 years ) i was advised by the company that there was £15.5k left owing on the agreement ( i got made redundant and couldn't afford the repayments ) and that if i handed the vehicle back, they would sell it at auction and whatever was raised would be used to clear as much of the remainder of the agreement as possible, if there was anything outstanding after that i would be liable.

Here's the current state of play, i found the vehicle for sale on autotrader 3 weeks after i handed it back, it was up for £19.5k, in between handing back the vehicle and seeing it advertised i had already been notified by the finance company that after the sale of the vehicle had not raised enough monies and that i owed £8.5k!
After being notified of this, i contact the trader who had bought the vehicle from auction house, he kindly sent me an email confirming that they had paid just over £16k, so here is me thinking 'phew that's me pretty much square on that one' and the sale of the vehicle had paid off the debt.

To this day i am still being chased for the amount the finance company say is outstanding, have refused to pay this, and written to the finance company several times for an explanation of the outstanding amount and why when i have written evidence of the amounts involved, as you would expect, i have heard nothing back from them, however they have slapped me with a CCJ.

Quick summary

* made redundant and owe £15.5k on agreement - was upto date with payments
* Hand keys back to finance company same month
* vehicle sells for £16k ( just over )
* i still owe £8.5k on agreement

What am i missing with this amount, i have had no explanation what the £8.5k is made up of even though i have asked the question several times.

Are the finance company trying to get me to pay the remainder of the interest for the life of the agreement!? ( another 3 years )

Can someone shed any light on what this amount could be!?

Tixy

When you say they have slapped a CCJ on you - did you respond to the court papers at the time they were sent to you? Did you reply to question the amount owed and say you had not been provided with a breakdown of the debt despite requesting it by letter?

You say you have asked the question as to how the balance is made up by letter - did you send any of these recorded delivery? If not then that is usually the best option if a first letter is ignored. Followed up by a formal complaint to them.

As to the amount involved - from the £16k the trader paid you would need to deduct the commission they paid to the auctioneer, the commission the finance company paid to the auctioneer to sell the car. Possible storage fees, possible collection fees (if they collected the vehicle from you) and quite likely other costs.
You would not expect to pay the remaining interest on the whole loan, but might expect to pay an amount from the date you made your last payment to the date of the auction. There may also have been VT fees detailed in your loan agreement.
Since the date they informed you of the amount to be paid they would be likely to continue to add interest on to that whilst ever it remained unpaid.

jumperjohn

You should have, should, pay for the services of a solicitor. I had a similar dealing a few years ago and the 'difference' was written off.