Settlement Figure Help Please

7633377

Hello all,

If possible please can you help me with some advice regarding a car finance settlement figure which I have now been told is incorrect.

I bought a new car from Mercedes in March 06 to use for my work, I signed an agreement for 3 years at £600 per month, and the high payments were due to a very high mileage as I would be travelling over 80000 per year. Then in April 07 was made redundant leaving me with a high mileage car and a huge monthly payment to cover and this caused me to fall behind on my payments of 3 months, I have since found new employment but cannot catch up on the payments and this has caused a notice of default to be issued if the outstanding payments are not sent by 24/07/07.

But before this was issued I have re-mortgaged my property and used some of the equity to cover the full finance balance, I asked Mercedes for the settlement figure and they sent a settlement agreement acceptance of £17915.85 valid between 05/07/07 to 24/07/07.

I made a monthly payment on the 6th July so I telephoned on the 17th to ask if this was included in the settlement figure to be told this was included. And the figure is still £17915.85.

Today 18/07/07 I phoned to pay the finance off only to be told I owe a further £630.00, so what happens now do I sign the acceptance letter of agreement and send a cheque to them for the agreed amount or can they take action against me for the amount they have added over the last 24 hours.

Any help regarding this matter would be much appreciated.

missile

You really have not given enough info, but I suspect you have incurred late payment, penalty and interest charges. You need to take all the paperwork to a solicitor and / or CAB.

Unfortunately, I think you will find that you are liable. These "low cost" finance deals are great if you stick to the plan, but many are loaded with penalty charges which are a minefield for anyone who wants to cancel or falls behind with payments. Call me a cynic but I think they design it so they make a profit from those who can least afford to pay.

7633377

No there are no late penalty charges and the finance is with Mercedes Benz with very good apr rates not a rip off company in the least, its because they used the last payment I made for June to pay off the outstanding for April but I have an agreement to start paying the arrears off at the end of this month.

In a nutshell they now want June’s payment because they used it towards the arrears and now they cannot find the original settlement figure they produced but I have an original copy here.

7633377

I have just been told to write in now because they dont want to cover old ground!!

After sitting down and working out what has happened this is the case.

Aggrement was for. £27300.04
minus deposit. £1000.00
minus option to buy fee. £75.00
minus payments made to date. £7771.34

total £18453.70

But they are giving me a settlement figure of £18612.43???

They have got the sums all wrong and i have no discount for early settlement about £3000 is missing.

they have added the outstanding balance and for some reason added the 3 months arrears???

but yesterday they debited my card for £17915.85 and said they will bill me for the rest. Can they take a so called part settlement figure and they will not realise the security from the car untill they have it.

scotsgirl_3

Straight away those figures don't add up - you said it was a 3 year agreement and your payments are about £600 - that would only add up to £21600?

7633377

sorry i forgot to say it was £630pm and at the end £4220 balloon payment.

Sorry i forgot that but the sums are still wrong.

Here is the breakdown spot on.

Original Balance £27300.04
less option to buy fee £75.00
less amount paid £7771.53
balance outstanding £19453.51

And the then they have added £2017.40 arrears??? as costumer services think the balance still goes down if you have not paid.

So now i have a balance of £21470.91 say minus £3000 settlement £18470.91 instead of £19453.51 and minus £3000 for settlement discount £16453.51...£1462.34 difference

I know its very confusing but i know I'm right and I'm hoping when it gets to the credit department its noticed as customer services have been calculating this.

CLAPTON

Perhaps you could take a moment and put all the figures in one post ... in one you say you paid a 1000 deposit but later you leave it out.
You mention a 75 fee.. is that additional to the cost of the car or included, then you introduce a 3000 settlement ..what does this mean and how have you calculated it?
can you also say what the APR of the loan was as this will surely affect how much the settlement figure should be; when you say fall behind do you mean you missed three payments completely?