moneybarn car finance

mikeandrach_2

ok, long story but i will try to cover all key points.

in january we bought a car using moneybarn as the finance provider, at 290 for 48 months.

i know moneybarn are subprime and the apr is 44% which is eyewateringly high but at the time was the only finance option. i know we could have got a cheaper car etc etc but at the end of the day whats done is done.

we missed some payments earlier this year and they temrinated the contract. we were able to get the debt paid and they reinstated it and allowed us to continue making payments. we have missed a payment in october and november and they sai dbecause we had a termination before they werent going to be as helpful this time, and that we had to make all payments by tomorrow or they would collect the car this weekend. we will be making the payments tomorrow and will no matter what never miss one again.

my questions are, are they allowed to openly admit they will treat us less favourably? i guess they probably are but it seemed a bit blunt

also, we have in total been charged £200 in fees. all for things like direct debits being returned or defaults. i asked if these were like bank charges and could be reclaimed but they said no, which of course i expected. does anyone on here know? it i try to reclaim these charges would i succeed?

thanks

somethingcorporate

Yes, they could have terminated the loan previously and demanded the money straight away or taken the car back. By not doing so they treated you favorably for you only to go and breach the agreement again.

They will probably only act so far as they have to in terms of the contract you agreed which is inevitably less favorable than the lenient treatment they gave you already.

I'd suggest if you are trying to keep the lender onside then trying to pursue unfair charges is probably foolish and going to make them even less likely to be nice to you. If they terminate the agreement and take the car back then you have nothing to lose to pursue the charges, however, there is no guarantee that they are unfair.

What are the charges (i.e. how much per breach). If the lender has incurred costs as a result then you should be liable to pay them for breaching the agreement.

iolanthe07

I expect the charges are in their Terms & Conditions. Sub-prime lenders do tend to come down hard on customers who default; even at 44% APR they are taking a risk by lending to people who have a history of being tardy at paying. I don't think they treated you less favourably, it is just that cut you some slack the first time you defaulted which, unsurprisingly, they were not prepared to do again.

mikeandrach_2

thanks for your reply, i see what youa re saying. if i get the payments back up to date and then 100% stick to them surely there is nothing to lose by trying to claim? the charges are al £25 for late direct debits etc

sistafromanothermista

I doubt you'd get anywhere with it tbh. What do your terms and conditions say which form part of your contract?

somethingcorporate

£25 per missed DD sounds ok - perhaps a little on the high side but perhaps not too punitive.

If you stick with the lender then not worth pursuing but if they do take a harsher line with you then no harm in seeking redress. I have no idea whether it will be successful or not though.

Good luck!

SeanG79

mikeandrach wrote: »

thanks for your reply, i see what youa re saying. if i get the payments back up to date and then 100% stick to them surely there is nothing to lose by trying to claim? the charges are al £25 for late direct debits etc

The T&C's will state the charges for missed/late payments, default notice, etc. The probability that they reimburse any of these charges is slim to zero.

They have the added security of the car and you will not get title to that car until all contractual payments, incl. charges have been paid, so if you want to keep the car you will make the payments...

27col

It seems to me that they were doing you a favour after you missed payments. Then you missed more payments. What did you expect.
If you had kept your side of the contract then you would not have incurred any charges. There are two parties to any contract and you have not kept your side of it.

DCFC79

Sounds like they helped you out in the first occaison. Just set up a direct debit and make sure theres enough in the account for when the DD is taken.

~Brock~

44% APR is not 'eye wateringly high'.....it seems to me that it is about right for the level of risk that you are proving to be.

There is likely to be a valid reason why it was the only finance option available to you and you appear to be already proving why this was the case.

You wont like this but the best advice here is to man up, stop trying to find fault with the lender as a way of diverting attention from the fact that you are the one who has not been sticking to the agreement, and set out from this point onwards to prove the statisticians wrong.

@ DCFC79.....please tell me that post in your signature didn't really happen lol ??!!

DCFC79

~Brock~ wrote: »

@ DCFC79.....please tell me that post in your signature didn't really happen lol ??!!

Not entirely sure it happened as the poster could have been a troll or was just bored which was most likely. Can see the user is still around so id say he was removed.