Honda Finance terminated my agreement: advice!

bagginsian

Honda finance today wrote to me terminating my car loan agreement. I called them and they wont budge at all, saying i either owe the outstanding £6,000 or arrange repossession.

I haven't paid a third yet of the overall loan amount so they say they are going to arrange repossession. I am stressed and shocked, as i have been paying them smaller amounts for six months and they are aware i am starting a job in August, at which point they will receive the arrears of £880. I haven't spoken to them for a month and they have pushed the button it seems. They only sent me a letter which i got on monday asking to call them to discuss the account, then three days letter i get this...is it fair?
I have no idea what to do, i need my car to go to my new job, which is early and late shifts, or i wont be able to pay them anything!

I dont know my rights about repossession or sorting out an alternative to all this...as far as i can Google on this, i have no options left? Any help is appreciated people. I am so sick and stressed about it.

iolanthe07

Your rights and obligations will be in the small print of the agreement you signed. You need to dig this out and read it carefully. Honda Finance is not some fly-by-night outfit, so I fear they are probably right and you may have to surrender the car if you are seriously behind on the payments.

Apples2

If you are not even one third of the term and already six months behind, how many payments have you made?

We're they aware of the August payment due?

Can you offer them anything now?

bagginsian

I am four months behind in owed amounts..£883 although I have been making smaller payments in the mean time to them. I was made redundant earlier this year, I did not choose to stop paying. They have been aware of my job start date for the last three months. The issue also is, they have given me no notice of intended repossession, or cancellation of the loan, they just did it. They refused to accept any offers now, just either the full £6,000 balance or the car. I need the car to go to work! If they take it, they will sell it for peanuts and i will be left without transport and a massive debt still to them.

I have sent a letter of complaint and also read up: they cannot repossess without having permission to do so and to go onto my property. I will refuse this.
I can pay my arrears and make regular payments: from end of August onwards.

bagginsian

I have already paid £2,458 in monthly payments of £180. I am close to having paid a third, which is approx £3,300

jellie

bagginsian wrote: »

they cannot repossess without having permission to do so

They don't need anyone's permission to repossess their property, unless you have paid more than a third of the amount repayable under the loan, which it appears you haven't.

If you have paid more than a third, they would need a court order.