Advice on barclays partner finance car loan

cakey87_2

Hi all

I'm in a tricky situation with a car loan I have. The loan is not actually in my name its in my fathers, to cut a long story short we were both stupid as we believed my dad was acting as a gaurentor on the loan when in actually fact the loan was taken out in his name. Of course we can't disput this as should have read small print!

So the original loan was for £12,000 (fixed term agreement) taken out in 2011 over 60 months over the last couple of years I have fallen behind on payments for a couple of reasons (being on maternity and ex losing his job and then I had to cut my hours so earning dropped significantly) I am now living at home and trying to get all my debts sorted but really unsure on what to do with this. For a start I can't speak to barclays as the loan is not in my name so I just make a payment each month however from using the automated payment line I know that the account is in arrears by around £3k this account is due to be paid next May what happens after that as I know I won't be able to pay £7k in a year. Will they sell the debt or extend the loan? Do they add a higher interest rate? I'm concerned il never pay the debt!

They did at one point pass it to a dca who couldn't come to an agreement with me.they either wanted the car (which is worth about £3k now I know I'm a foolish idiot!!) or £350 a month which I couldn't afford.

Would really appreciate advice anyone has! Thanks

[Deleted User]

Your father needs to talk to them and understand what the situation is. Ultiamtely, the loan will default and sold to a DCA if a realistic payment agreement isn't reached.

cakey87_2

Thank you, yes i know my dad has spoken to them previously but has been in ill health and is probably not picking up any letters from them as he is now livkng with his partner and won't have redirected the post. Is it possible that they would sell the debt and the dca would take the car as a settlement? By the end of the agreement I will probably still owe £5k the car will be worth around £2k probably unlikely but just a thought that crossed my mind today as I would happily give them it to settle the debt!

Gaz83

They won't settle the debt for any less than it's worth unless it's gone unpaid for a long time and it looks like they won't get anything otherwise. They will, understandably, want to recover the full amount.

[Deleted User]

If the loan is secured on the car, then yes, they could take it. But it will fetch much less than market value if they do that, as it will probably be sold at auction.

You really need to talk to your dad and make sure he understands the situation, as it is his credit file which is being affected and who will ulitimately have to face the consequences.

cakey87_2

Thanks everyone, yes I do need to speak to my dad about it, he is fully aware of the situation I think due to a couple of reasons he is just passed caring and has said to keep paying what I can. I am now making the set monthly payment of £208 but it's only just recently occurred to me the loan should be paid in a year and im so behind. Ive been very naive to think they will just let me keep paying until it's paid but of course there will be extra interest so im concerned it's never going to be paid!

Thanks again for the advice

Foxy-Stoat_3

Can you not sell the car and buy a £500er that will tied you over for a few months while you sort your finances out.