Motonovo - Default after VT

jms88

Hi, finally needed to join the forum after years of lurking!

Basically, I decided to hand my car back to Motonovo under VT. The vehicle was on a 5 year HP agreement. I wrote to them mid Feb informing them I wish to VT and Manheim collected the car mid March.

I am aware i'm not at the 50% of my payments which is fine, as I plan to pay the remaining off with Motonovo.

Motonovo done their usual trick of trying to sting me for various bits and bobs such as excess mileage, condition, servicing etc (car was 5 years old when I bought it, and was actually in great nick).

I've obviously wrote and disputed this as per the CCA (they want 2k, on top of the 4.6k outstanding for the vehicle). I wrote to them at the end March (recorded del) explaining I would not be paying the excess charges and as soon as these are removed I would make a payment for the remainder.

Now i've had an alert from Equifax and there is now a default notice next to this agreement. I paid my last instalment on the 1st March and then cancelled the DD (the car was collected on the 14th March, i initially started proceedings around 20th Feb).

I've not has a response to my last letter, and I am wondering where I stand with handing this Default notice removed.

Really appreciate any help/advice given.

Cheers,

Jason

jms88

I've sent them a letter today (RD of course) asking to have the defaulted marker removed.

I've not had a formal default notice off them as I've never missed a payment.

The last letter I received from them was that the request to VT the agreement had been accpeted, but that there was a further liability due in respect of the other 'charges' they've added for excess mileage. At the bottom of this letter it states "You must make payment within 30 days or the agreement will be terminated with default liablity." (This letter is dated 18th March 2014, so not even 30 days yet!).

My question would be, does the above extract from their letter consitute as a default notice? Or do they actually need to send a formal "default notice" letter?

I won't hold my breath, I feel a battle is on the cards with this one.

happy_bunny_2

No expert on this, but you are allowed to complain and refer to the FOS if rejected. In writing obviously.

You have evidence that contradicts their extra charges?

forgotmyname

I think they may see it as you have not reached the VT point so you have actually defaulted and not VT'd the agreement.

You should have paid over 50% before doing the VT.

Im sure someone who knows the ins and outs will clarify matters for us.

jms88

There is no 'VT point', you can VT at any point during your contract as per CCA. It's just that VT'ing before the 50% renders you liable for the remainder. I don't believe they can default you simply by VT'ing. The offer to pay the remainder is there from myself, I just wanted their extra 2k charges removed first.


Just a quick update since I arrived home. I've received a letter dated 4th April 2014 advising that after the sale of the vehicle the settlement amount is now £4.1k, and will be reduced by 20% if paid within 7 days (passed that before the letter even arrived!). If payment is not made the account will be sold to debt collection agency. No mention of any of the points raised in my last letter, although it does appear the £2k charges from the inspection have been wiped (unless the car sold 2k over at auction?)

I made a quick call (in addition to the letter I will send to back it up) with one of their agents who was very surprised at what had happened re: default, as he was in agreement to 30 days being outstanding, after a quick consultation with his manager he quickly fell back into party line and informed me "marking the agreement as defaulted is what we normally do when someone VTs the agreement until the amount is settled, but once you've paid the amount the the defaulted mark will be removed".

Maybe I'm cynical but I'm dubious over this, my instinct is don't pay a penny until they've removed the defaulted marker.

happy_bunny_2

jms88 wrote: »

There is no 'VT point', you can VT at any point during your contract as per CCA. It's just that VT'ing before the 50% renders you liable for the remainder. I don't believe they can default you simply by VT'ing. The offer to pay the remainder is there from myself, I just wanted their extra 2k charges removed first.


Just a quick update since I arrived home. I've received a letter dated 4th April 2014 advising that after the sale of the vehicle the settlement amount is now £4.1k, and will be reduced by 20% if paid within 7 days (passed that before the letter even arrived!). If payment is not made the account will be sold to debt collection agency. No mention of any of the points raised in my last letter, although it does appear the £2k charges from the inspection have been wiped (unless the car sold 2k over at auction?)

I made a quick call (in addition to the letter I will send to back it up) with one of their agents who was very surprised at what had happened re: default, as he was in agreement to 30 days being outstanding, after a quick consultation with his manager he quickly fell back into party line and informed me "marking the agreement as defaulted is what we normally do when someone VTs the agreement until the amount is settled, but once you've paid the amount the the defaulted mark will be removed".

Maybe I'm cynical but I'm dubious over this, my instinct is don't pay a penny until they've removed the defaulted marker.

Send them a written complaint, signed for or get proof of posting and mention you have done so in the letter.

I wouldn't bother talking to them.

You need something in writing, as they will try and make sure that what they put in writing is accurate where as on the phone they tend to say stuff they would never write down.

After 8 weeks, if not sorted, you can refer to FOS.

I wouldn't be paying anything until your complaint is resolved. Selling your account won't get them out of jail either.

jms88

Thanks, I'll write up a formal complaint today and get it sent off RD. I sent them a letter yesterday about the default etc but I guess a complaint might force them to act a bit faster.

xxmiss_deexx

I had a hire purchase agreement for a sport ka with motonovo in which I gave back only having 800 still to pay, I notified them in dec 2013 which I paid for then January 2014 I also paid for. Mannheim came out to inspect the vehicle which I was told 1,098 was to be paid for damage which was ridiculous! Most was couple of rust bits which were there when I bought the car I phoned asked for a breakdown of the figures, apparently 75 pound per alloy wheel. Anyway I was in dispute about prices so they defaulted me January although I paid that month, also a default on February . Motonovo and I came to an agreement mid feb that 350 I would pay to clear the current liability, which was paid. Checked my new credit report which gets updated every 4 weeks only to find a default on March. I've contacted the FAS which are allowing motonovo 56 days to resolve the matter but with these defaults on my name I cannot get a morgage after putting a reservation fee down on a property! Didn't think it was allowed to default as I have never missed a payment on the car.

CKhalvashi

It will come down to whether it was reasonable wear and tear.

Wheels definitely won't be, and if damaged should be charged, but if the rust was there when you bought the car, then it certainly shouldn't be charged, as unless this was accident damage, should be covered under warranty even if it wasn't.

I've just had a new boot and passenger door fitted to a July 2002 Focus ST under the rust/corrosion warranty free of charge, and knowing that the SportKa wasn't out then, this should be a straightforward warranty repair (with Ford it's 12 years, I think the same for your model)

I've only recently bought the car in question, so the rust was there already (and is just visible on the back photo, at the top left of registration)

CK

xxmiss_deexx

Yeah I took full responsibly for the alloy wheels to which the 350 was for, but the rust on the window wiper was there when car was bought and also round the fuel cap. I have paid the amount we agreed on and the account is settled I'm more looking to get the defaults off my credit check due to buying house and I was told off motonovo the defaults will not be able to be removed. I don't understand how I can be defaulted when I was always in contact with them never once missed a payment. Customer service with them is very poor.

CKhalvashi

Google Section 10 of the Data Protection Act, and also write a complaint to them quoting the abovementioned section, threatening to get the ICO involved.

There's a good chance it won't end with the FOS or ICO in this situation.

Also Google the guidance on issuing defaults, as late payment markers should be placed first for approx. 6 months. I'm on holiday now (and trying to get my DD's to go to sleep), but I will get both the things I've told you to Google within about 30 minutes.

CK