HP Car Finance

tinkerbell28

Woah hold on.

You got a loan. Had a years break for bankruptcy, then refinanced to cover what you still owed on the SAME CAR?

Did the OR know about this? Or was it some secret deal you struck with them to get keep the car? As obviously the car loan would fall into the bankruptcy. You owe them nothing.

You should not have had to refinance the loan to pay off the same car after the bankruptcy. The money you owed was a bankruptcy debt. The car then either gets sold by the OR if over a certain value or repossessed. If it has finance on it.

If you've done what I think you've done. Welcome finance have been VERY VERY naughty and I'd be going to the FOS. You could also be in trouble. If you struck a deal to keep the car as long as you took out a new agreement when you came out of bankruptcy.

You are not allowed to favour one creditor over the other.

babyqueen1066

Now im confused. I was told cause the car was on finance then I had the choice to keep it or let it with the bankruptcy so i decided to keep it as i was not in a position to buy another car. They told me I could not make any payment for a year whilst in bankruptcy and when i was discharged i went in to see them to reduce my payments thats when the new hp agreement was done at payments £65.71 over 120 months.
Im worried now xx

tinkerbell28

babyqueen1066 wrote: »

Now im confused. I was told cause the car was on finance then I had the choice to keep it or let it with the bankruptcy so i decided to keep it as i was not in a position to buy another car. They told me I could not make any payment for a year whilst in bankruptcy and when i was discharged i went in to see them to reduce my payments thats when the new hp agreement was done at payments £65.71 over 120 months.
Im worried now xx

Welcome finance told you this?

It is true you can continue with hp in some cases, or you can include the debt in the bankruptcy.

However the very odd thing...is if you continue with HP..you continue on the old agreement.

You don't take a years break, then resume on a higher level of debt. It's almost like it's been deliberately done to hide it from the or.

If you want to keep your hp, you keep it on the old agreement. Possibly they knew the OR would see the costs involved and not allow it, or say to hand it back? A 4-5 year old car, the OR may well have turned around and disallowed the continuation of the HP. Taking into the value of the car and the actual costs associated with it. So by waiting until your discharge, they signed you up for more debt, without having to answer to the OR.

So, I would go over your paperwork and try and think back. What the OR knew, what you told them, then what debts were included. As if they ended the HP agreement as a result of your bankruptcy then it should have been included. So if you and them waited a year as a deal struck between yourselves, without the OR's involvement, to continue paying a debt which was included in bankruptcy. That is a huge no-no.

I would be going to the FOS in your shoes.

babyqueen1066

Thank you think im going to ring FOS xx

tinkerbell28

I would, it doesn't sound right. As HP is a secured debt, it isn't always included in BR.

You, the OR, the car finance company can come to an agreement to keep paying the HP. If the OR decides the cars is not worth that much, the HP is affordable and not excessive and it is essential.

The fact the original hp agreement was cancelled, suggests it was included in the bankruptcy. Then a year passed, after this you aren't answerable to the OR. So they signed you up for a high APR agreement to continue paying a debt, which sounds like was written off upon you bankruptcy.

The OR is there to get the best deal for your creditors and administer your BR accordingly. I would eat my hat if he knew about this "deal". As all that has happened is WF have profited from your BR, by putting you on a HP agreement, paying out more than ever. So they come out more favourably. Plus it sounds like it was in your BR anyway if they terminated payments.

If this is what has happened not only is it unlawful, it's morally wrong as well. Taking advantage of someone who has gone BR and does not know any better.

jellie

tinkerbell28 wrote: »

Woah hold on.


If you've done what I think you've done. Welcome finance have been VERY VERY naughty and I'd be going to the FOS. You could also be in trouble. If you struck a deal to keep the car as long as you took out a new agreement when you came out of bankruptcy.

You are not allowed to favour one creditor over the other.

You cannot just go to the FOS. If you do, they will simply refer the matter to Welcome for them to investigate.

OP, you will need to make an official complaint to Welcome. When you receive their final response (which will have your right to refer to the FOS at the end of it) and if you are still unhappy, then you can go to the FOS.

tinkerbell28

jellie wrote: »

You cannot just go to the FOS. If you do, they will simply refer the matter to Welcome for them to investigate.

OP, you will need to make an official complaint to Welcome. When you receive their final response (which will have your right to refer to the FOS at the end of it) and if you are still unhappy, then you can go to the FOS.

Not strictly true. When you phone the FOS, they take a rundown and say if it is a matter they can deal with.

If it is, and you make an official complaint to the FOS. Then the initial contact is usually enough for a company to 'fess up. If they don't, the FOS take the reply as their final response.

Stupid_Question

tinkerbell28 wrote: »

Not strictly true. When you phone the FOS, they take a rundown and say if it is a matter they can deal with.

If it is, and you make an official complaint to the FOS. Then the initial contact is usually enough for a company to 'fess up. If they don't, the FOS take the reply as their final response.

The FOS are an adjudicator, nothing more.

All they can do is send the customers complaint on to the company. Once 8 weeks passes, or the customer is issued a final response then the FOS can get involved.

Submitting a complaint in this way does not make a business treat it any differently.

tinkerbell28

Stupid_Question wrote: »

The FOS are an adjudicator, nothing more.

All they can do is send the customers complaint on to the company. Once 8 weeks passes, or the customer is issued a final response then the FOS can get involved.

Submitting a complaint in this way does not make a business treat it any differently.

Yes it does, because we've just done it.

jellie

tinkerbell28 wrote: »

Not strictly true. When you phone the FOS, they take a rundown and say if it is a matter they can deal with.

The people answering the phone are not in a position to say whether FOS will take the case on or not. That is not their decision to make. They will just take details of your complaint and refer it to the company concerned.

tinkerbell28 wrote: »

If it is, and you make an official complaint to the FOS. Then the initial contact is usually enough for a company to 'fess up.

Companies don't just roll over because the complaint has come via the FOS. They will carry out the same investigation they would have done if the complaint had come direct from the customer.

tinkerbell28 wrote: »

If they don't, the FOS take the reply as their final response.

Which is why the company's final response will have the customer's rights to refer the matter to the FOS in it.