Default payment - voluntary termination

SJNE

Back in 2007 I had a car on finance which was stolen, the matter was reported to the police and dealt with by the insurance company (or should have been). However I was approached by the car finance company for £1300 which I did not pay as insurance should have covered the finance payments. That has been removed from my file however last year another company bought the debt and are now asking me for the £1300. I have been on my credit report and it shows as defaulted since this company bought the debt last year, however it also says voluntary termination.

I am not sure how this can be defaulted and voluntary termination and am looking for advice as to what is the best thing to do regarding this account?

chanz4

well you did default if your insurance didn't pay the full o/s off, this is why you have gap

CHR15

As above, Insurance does NOT cover the finance, it covers the car.

GAP Insurance is offered at the signing of the agreement to make up the difference between the insurance payout and the remainder of the finance.