Car stolen. Finance company chasing

Danigood

Hi there. New here but need some advice.

I took car finance out in jan14, car was stolen in mar14, my insurance said they paid in full, however there was a shortfall of £350.

I did keep getting no dad letters each month but because I have not had any written letter sent to me to advise there is still a balance.

So I decided to call them today and check, they are now asking for £1400. Can they do this?

I am in a position to maybe able to pay £350 which is the shortfall?

I am partly to blame for ignorance.

Any advice is most appreciated.

Tixy

I did keep getting no dad letters each month

???

I would ask them to send you a full breakdown of the alleged outstanding balance so you can understand how they have arrived at the balance.

forgotmyname

I presume they passed it onto debt collectors who added their own charges?

"I did keep getting no dad letters each month" ??

Danigood

No the file is still with them. I've not had any reminder letters or defaults. Just emails stating no dd has been taken.

Because I never paid the remainder on the settlement figure, can they just continue to charge each month the amount that was agreed?

Also, am I right in thinking that due to my insurance company paying £5500 I would be in front of my contractual payments?

Danigood

Did keep getting no direct debit letters each month

Tixy

You did originally inform them that the car had been stolen?

And did you have correspondance from them acknowledging that? Do you have a letter / statement from them that shows that they did receive the insurance payment and allocate it against your account? Is that how you know there was a £350 shortfall?

Were the letters you received stating that they had tried to take a DD and failed? or were they informing you that they hadn't taken the DD that month (presumably because they account was in credit at that point)?

Danigood

I informed them immediately

I have never had correspondence from them apart from the emails advising I'm due to make a payment but there is no direct debit in place. Please make alternative payments.

They told me on the phone that my settlement figure was £5850, I then had confirmation that the insurance was paid out soon after.

They today said that as I didn't settle, the settlement figure no longer exists. I was told that a manager would call me Monday to discuss, he said your balance is now roughly £1400

I'm very worried I will be liable for this

stator

If the original £350 is valid offer to pay the £350 as full and final settlement, but get it in writing.

BrassicWoman

was that the excess on the insurance? £350?

Danigood

No insurers awarded £6000 less excess of £500, they sent finance £5500, my settlement figure at the time was £5850.

I'm worried sick. Can I say my finance was ahead and in credit would this work?

chanz4

they wont mark your credit in arrears as yet, however you do owe the shortfall and would arrange asap.