MoneyBarn forced default notice...

hello2341

I’m looking for some advice regarding a forced default notice and possible contract termination on a car finance agreement with MoneyBarn ltd.

In November 2015 I purchased a car on credit worth £9,900 with a total repayment value, including interest, of £16,000. I agreed to pay £290.50 per month, as well as a £600 deposit on the day.

At the time of signing the contract I had 2 jobs, however, last month I lost one of these jobs and it has left me with a shortfall each month.

I missed my January repayment of this year, as a few days earlier I had to pay out for a full service, 2 new tyres, brake pads and a few other minor repairs totalling £400. I expected to have enough in my account, but due to the delay in some transactions coming out and showing on your bank account, I had some other unexpected bills on top of the car repayment, so it was returned as unpaid.

I contacted MoneyBarn to explain my situation and was asked to fill out an affordability sheet to see how much I had left over each month. As I already knew, due to losing one of my jobs, there was a shortfall of around £330, however, I explained to the lady that I have savings to cover me until I find a second job and said I’m happy to pay the missed payment and continue as normal.

To my amazement, she refused to accept this and said regardless of the fact that i’m willing to pay my arrears and the fact I have savings to cover me, it wasn’t good enough, as ‘responsible lenders’ it wouldn’t be fair of them to take my money, as I don’t have long-term income from employment that covers the shortfall.

At the time, I thought this was her offering some kind of help by freezing the payments until I sort myself out. I couldn’t have been more wrong though. She was in fact telling me that a default notice was being placed on my account and unless I can provide proof of long-term employment within 20 days then they may terminate my contract.

I said to her, if you’re really trying to help me, then why can’t you half my repayments for 2 months to give me time to find a second job, then I will spread what is outstanding over the remainder of my loan?

Instead I was offered 3 ‘exit options’, she went through them so quickly though, I didn’t really have a chance to process what they all meant. I asked for them to be sent to me in writing, but was told this wasn’t possible, it could only be done over the phone. I do remember her saying 2 of the options involved me losing the car, while 1 involved me keeping the car but paying a lot of money.

It seems like they have waited for the slightest sign of weakness and pounced on me with the harshest of consequences. There’s not the slightest bit of flexibility to help their customers through a temporary bump in the road.

I’ve pretty much given up on my credit score, as this default notice will further destroy what little rating I had in the first place. I really don’t want to lose my car, as well as the money i’ve already paid though.

I’m trying my best to find employment, but I don’t think it’s going to be possible within the now 14 days I have left.

Is there anything I can do to fight this? Are they allowed to refuse payment based on what they class as long-term affordability, despite the fact I said I have savings to cover me? And the fact this is my first and only missed payment?

Thanks in advance.

AnotherJoe

Do you have enough savings to pay it off now ?

hello2341

I have enough savings to pay off the monthly payments, not the entire £16,000 loan amount. I keep these savings back in case of emergency's such as this. I wouldn't want to spend it all in one go. That's why I was happy to continue with my contract as normal, until I can find employment.

glentoran99

Keep paying what you contractually owe, if you can afford it and they cant rightfully issue a default, you do not have to provide them with anything if you are meeting your payments

rizla_king

hello2341 wrote: »

She was in fact telling me that a default notice was being placed on my account and unless I can provide proof of long-term employment within 20 days then they may terminate my contract.

Are they allowed to refuse payment based on what they class as long-term affordability, despite the fact I said I have savings to cover me? And the fact this is my first and only missed payment?

Thanks in advance.

depends on the terms of the contact you signed

somewhere like http://www.legalbeagles.info/forums/ is probably a better place to ask about the legality of default and termination on your agreement

hello2341

glentoran99 wrote: »

Keep paying what you contractually owe, if you can afford it and they cant rightfully issue a default, you do not have to provide them with anything if you are meeting your payments

That's exactly what I thought, but after an hour of arguing and her going back an forth from placing me on hold, they kept playing the 'responsible lenders' card...

Do you think I should simply send a transfer straight from my bank account to theirs and bypass doing it through their customer service department?

I'm concerned they will continue with the default notice though, and I really don't want to have to keep hiding my car from the debt vampires.

hello2341

rizla_king wrote: »

depends on the terms of the contact you signed

somewhere like is probably a better place to ask about the legality of default and termination on your agreement

Thanks Rizla, I shall post of there too, see if they can offer any advice.

glentoran99

hello2341 wrote: »

That's exactly what I thought, but after an hour of arguing and her going back an forth from placing me on hold, they kept playing the 'responsible lenders' card...

Do you think I should simply send a transfer straight from my bank account to theirs and bypass doing it through their customer service department?

I'm concerned they will continue with the default notice though, and I really don't want to have to keep hiding my car from the debt vampires.

Yes if you can afford it do exactly that, You would have a very good case against them if they defaulted you and you have been paying them the contractual payments,