advantage car finance

tara1082

Hi i really need some help and advice.
I purchased a car on finance from advantage in march 2014. After 3 months my ill heath forced me to hand in my driving licence. At the time my son needed a car so he has been using it and paying the direct debit from his account every month without fail for 9 months.
Anyways he had a car accident last week and the car was a total loss and insurance has agreed to pay £3100 direct to advantage finance. Trouble is the settlement figure is more than that at £6800. The car has been retained by the insurance and my son was without a car. Advantage would not give the insurance company permission for my son to retain the car get it repaired and carry on with the payments. So he has no car and i am left with the debt. We have had a falling out over this and my son has stopped talking to me. Today i received a letter from advantage finance saying i have committed fraud as my son has claimed back 9 direct debits from his bank. Advantage have said they will place a fraud marker on my creditfile for misuse of direct debit facility. I had no idea this was happening it could only have been my son who has raised the direct debit indemnity so how have i misused the facility. The funds were taken out of my sons bank i have no control over his account or actions. Please can someone help me who know about these things. Kind regards

MEM62

You really need to look at the agreement to see what the terms and conditions are. Nobody on here can properly respond without knowing all the facts.


Was the car and financing assigned to your son with the knowledge and consent of the finance company? If not then you probably have a problem. Also, why is the difference between the insurance value and outstanding finance so great?


In this case I think you need proper advice rather than the opinions of a forum - particularly as the finance company believes that you may have acted fraudulently. You might want to see a lawyer. There are many that will give you an initial consultation free of charge.

~Brock~

If nearly a year's worth of payments have been claimed back (for no valid reason it seems) then it is hardly surprising that the settlement figure is so high.

WillyWonga

Go and speak to the CAB for advice. The agreement is in your name and you are responsible for all payments. The company doesn't mind whose account they come out of as long as they are paid. If a third party does an indemnity then you are still responsible for the payments.

Appears your son had the car for 9 months and paid for it - ok there has been an accident but nowadays its rare for a car to be repaired its easier to write off - but for your son to now claim back his 9 payments for when he had the car is below the belt.

The problem with cars on finance is that an insurance figure will rarely settle the debt. Was this £6800 sett fig before the bank told you that 9 payments had been recalled? If so expect a higher figure.

See the CAB and see about an exact settlement figure. They should help to get the interest frozen and you will pay them £x month. If you are on benefits then expect the CAB to offer a token payment per month eg £10 month. Basically the debt will never clear but Advantage cant do much as their security (the car) has gone.

The fraud marker they put on will mean an instant decline to all future credit. Again the CAB should advise. There is a way, may take a bit of time, but it is there....... good luck

Gaz83

You need to get legal advice on this one - both you and your son's actions have caused this hassle with the finance company.

Speak to a lawyer.

CHR15

Didn't you take out GAP insurance? This shortfall is what it is for.

This is besides the elephant in the room of clawing back payments. Fraud sounds like an accurate account of what the two of you have done (it is unlikely your finance agreement would have allowed this to happen).

Nothing to be gained from pointing fingers at each other, you are both in it together but only you have the onus of being the signature bearer.

Pixie5740

When you buy a car on finance the amount paid out by the insurance company isn't usually enough to clear the outstanding finance. That's why people take GAP insurance but that's not going to help you now.

A car bought a year ago that's now valued at £3,100 and has outstanding finance of almost £7k would indicate that this is some very expensive car finance. Is this sub-prime lending?

Your son has used the car for 9 months so I don't think he's within his rights to just carry out a direct debit indemnity and get all his money back since the direct debit guarantee covers "in the event that an error is made in the payment of your Direct Debit, either by the organisation or your bank or building society, you are entitled to a full and immediate refund from your bank of the amount paid," and the money wasn't taken in error.

Gaz83

Spot on.

This is borderline fraud. Speak to a lawyer.

chanz4

I wonder if they will now get the police also a do your criminally

The_Debt_Doctor

I'd give your son a good thrashing if I were you!

Fraud has been committed - he should not have claimed back the 9 months' worth of payments which he would have owed whilst he was responsible for the car, but do check the terms and conditions and that you did manage to transfer financial responsibility to him.

I take it the falling out was over the discrepancy between the insurance payout and the outstanding finance? Really, you should have taken that on the chin - always a risk when you don't take out sufficient GAP insurance.