Car loan queries

kitty08

My sister bought a car nearly a year ago on finance, but the direct debit set up for monthly payments has never been taken. She has contacted the garage where she bought the car several times, and even went in to see the sales rep who sold her the car, but they say the finance company has paid them so they aren't owed any money and to contact the finance company. She then contacted the finance company, who are supposed to take the direct debit each month, but although her details are recognised by their system, they say the debt doesn't exist and to ring the garage!! She feels she is going round in circles.
My sister has kept a note of the dates and times she contacted everyone, who she spoke to, details of conversation etc. She has not moved house or changed any of her details, and says she has checked that the information held for her is correct.
These are my questions:
1) Is there anything else that my sister can realistically do about this? She is not trying to avoid payment, but it seems no one wants to know!
2) I have suggested to my sister that its likely it will all come to light when the finance company has an audit or does their end of year accounts, so she should save the money in a separate account so she is prepared. Is this good advice? (she can afford the loan, but I'm worried she's getting used to having the extra £200 a month to spend!).
3) When / if the finance company gets its act together, could they demand the back payments to be made in one go, or is it likely they would be open to negotiation, as its their fault?
3) Just out of interest, if despite all her efforts the direct debit is never taken, how many years have to pass before the debt can no longer be collected? (she lives in England, so I guess it's covered by English law).

Many thanks for reading all this!
Kitty

andydiysaver

kitty08 wrote: »

1) Is there anything else that my sister can realistically do about this?

yes, open a high interest account, accrue the payments each month into the account, and wait


if they suddenly get their act together - the cash is there to pay out


if not in 6 years, statute barred, with interest, all available to spend on new car

kitty08

Thank you for the advice -that's a very good idea!

jonesMUFCforever

What a refreshing change to see a post like this!


I hope they don't contact you for 6 years 1 day when you will be safe - you deserve a reward for your honesty.