Black Horse unnecessarily giving me bad credit

Annemarie126

I got a car on finance in 2006 and in 2007 had a crash that wrote off the car. I was in a coma for a bit so didn't sort anything out insurance wise, it was my family I guess. When it all come to light, it turned out my insurance had only paid half of what was owed on the car. There was about £4.5k left. I spoke to so many people to find and why and to clear the amount. After the accident I was out of work for 3 years so could no way pay it and didn't think I should because the agreement stated I could request a cancellation.

I've pretty much been fighting them on this until now! I've had a letter today saying;
'Following a review of the annual statement of account that we sent to you about your agreement with us, we have identified that we did not remind you of your right to voluntarily terminate your agreement. We apologise for this omission.'

My credit file has been affected by this so much, is there anything I can do to hold black horse accountable for this?

freshstart85

Hello,

I have a current car loan with Black horse and one of the key features that was part of the credit agreement was that once 50% of the loan had been repaid you were able to hand the car back in and cancel the agreement with no adverse affect to your credit rating.

First things first call Experian and tell them that you want to put a notice of correction on your credit file against the loan. They will ask you to send them an email containing the details of the correction.

After you have done this I would contact the lender in the first instance and request that they remove the defaults from your credit file, if they refuse raise a formal complaint in writing. The fact that you were in a coma and unable to pay the loan is in my opinion a serious mitigating factor.

Let me know how you get on.

tinkerbellkirst

I think you will find that you are liable to pay the loan.

This is what GAP insurance is taken out for, to cover the cost of the car should anything like this happen. If you didn't take it out then unfortunately you are expected to cover the gap between what the insurance will pay and what you will owe.

It is correct you can voluntary terminate after paying back 50% but you do have to hand the car back. In this instance you didn't have a car to hand back so you can't take that option.

Someone will correct me if I am wrong but I think you will be liable for the rest of the loan.

Annemarie126

Thanks for your replies :-)

As the letter says I did have a right to terminate the agreement. I'll try asking them to take off the defaults :-)

Annemarie126

I have spoken to black horse and a request to get the last 7 years of defaults has been made. If these are taken off will it improve my credit rating right away?

MEM62

Annemarie126 wrote: »

I have spoken to black horse and a request to get the last 7 years of defaults has been made. If these are taken off will it improve my credit rating right away?

A default only remains on your history for 6 years after the account was first defaulted.

chanz4

the letter only applys to intrest

nottoolate

6) Where this subsection applies in relation to a failure to give a statement under this section to the debtor—

(a) the creditor shall not be entitled to enforce the agreement during the period of non-compliance;

(b) the debtor shall have no liability to pay any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it; and

(c) the debtor shall have no liability to pay any default sum which (apart from this paragraph)—

(i) would have become payable during the period of non-compliance; or

(ii) would have become payable after the end of that period in connection with a breach of the agreement which occurs during that period (whether or not the breach continues after the end of that period).