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Urgent help
skinnylady
Posts: 5 Forumite
I am not sure if this is the right category to post this but couldn't find anything else appropriate. I need some urgent help!
I recently sold my car. The car had an outstanding finance. The buyer wanted to pay the outstanding finance directly, which i agreed to and he settled the rest of the money directly with me. The finance company sent a letter of clearance and a letter stating my agreement has ended with them. I sold the car once i received this confirmation.
3 weeks later, the finance company has called me to say the outstanding finance was settled by credit card and they suspect the transaction to be fraudulent and that it might be reversed by the bank. They inform me that if this happens they will issue me a default notice. I was never informed that the payment was made by credit card or that it could be reversed up to 3 months.
Where does this leave me? I am liable? What rights do i have? pls assist..
I recently sold my car. The car had an outstanding finance. The buyer wanted to pay the outstanding finance directly, which i agreed to and he settled the rest of the money directly with me. The finance company sent a letter of clearance and a letter stating my agreement has ended with them. I sold the car once i received this confirmation.
3 weeks later, the finance company has called me to say the outstanding finance was settled by credit card and they suspect the transaction to be fraudulent and that it might be reversed by the bank. They inform me that if this happens they will issue me a default notice. I was never informed that the payment was made by credit card or that it could be reversed up to 3 months.
Where does this leave me? I am liable? What rights do i have? pls assist..
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Comments
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Who did you sell the car to eg a private individual or a motor trader?
How did you advertise the car eg autotrader etc0 -
Thans for ur reply
Was advertised on autotrader and sold to a private "alleged" trader0 -
The finance company should themselves be covered if they followed the proper procedure for accepting cards at a distance, this should leave the CC co to pick up the bill.
I would seek professional help now but my argument would be that they should have followed the proper procedure to protect themselves and if not it's their problem not yours. Expect a fight and though and you may need to let a court decide.
As a retailer with a merchant agreement I got a few chargebacks that were properly defended because the chip and pin was used. In distance sales other procedures like the last 3 digits on the back etc are used but done correctly they will not lose out and the CC co put it into the huge hundreds of millions of pounds write of for CC fraud that happens every year.0 -
Thanks for the response!
I am fully prepared for a legal battle and do think my case in sound..however i have an additional issue. I have recently exchanged on a property and awaiting completion. If the finance company were to stick a default notice, it could make my mortage company withdraw the offer..causing me a bigger financial loss.
Can they just issue me a default notice, even though i have kept my monthly payments till date? Also, would i better off negotiating with them to continue making payments while the issue is resolved legally?0 -
How was it paid to the finance company? You say the buyer settled it with money to you, so how does the dodgy card come into it?0
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You know...that's really bloody sneaky of the 'trader'.
You get a 20k car for 3k. I just hope its an admin error, but given you have a letter from them saying its settled then I really cannot see how they can now you draw you back in for the amount...0 -
So the £17k finance was paid with a stolen credit card, and has now been charged back.
Do you have full details of the guy who bought the car? Name? Address? Did you check his ID?
Did you mention in the advert that finance was owing on the car?
This could be an expensive lesson...Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
What does the letter of clearance from the finance company actually say? Does it explicitly say that the debt has been paid and you do not owe them any more money? If so, then it shouldn't be difficult to argue promissory estoppel applies so they cannot chase you for the debt.Common sense?...There's nothing common about sense!0
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If the card was stolen then they dont have the money?browneyedbazzi wrote: »What does the letter of clearance from the finance company actually say? Does it explicitly say that the debt has been paid and you do not owe them any more money? If so, then it shouldn't be difficult to argue promissory estoppel applies so they cannot chase you for the debt.0
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