Car Written Off - Finance Outstanding

Gaz83

ParkerJ wrote: »

Thought as much. It's not a fact of not wanting to face the inevitable just seeing what the finance companies obligations are. Is it all up for negotiations or is it, YOU MUST DO THIS?

If they demand the money and it can't be given, what's left to be done, apart from being taken to court. Just looking for some advice on how to handle it, I mean there are a lot of lessons to be learnt by this, it's just trying to deal with the fallout.

The finance company don't really have any obligations. They lent money secured against an asset, an asset that has no value any more. They are entitled to ask for their money back.

You could call them and explain the situation and try to negotiate a repayment schedule.

Which finance company is it?

ParkerJ

I believe it's called MoneyWay, and some of the information I gave such as Interest rates aren't the actual ones so it could be more or less.

Gaz83

Your brother needs to get in touch with them ASAP.

ParkerJ

He's been in touch with them, and that's what they've said. I've told him to phone up and allow me to speak on his behalf.

As I said previously I knew this was the only option, but some people have crazy luck and really good past experience's and I was just looking for another way out for him.

At the end of the day, I think giving him the settlement cheque for a new car, means everybody win's. They have an asset to secure it on and he get's a replacement car, damages his no claims and increases his insurance, but it's better than nothing.

tiger_eyes

ParkerJ wrote: »

If they demand the money and it can't be given, what's left to be done, apart from being taken to court. Just looking for some advice on how to handle it, I mean there are a lot of lessons to be learnt by this, it's just trying to deal with the fallout.

Being unable to pay will trash his credit history, but I assume it was trashed anyway if he's taking out finance at 18% interest. He'll need to draw up a reasonably strict budget and figure out how much he can afford to pay monthly. The creditor will need to see the budget to understand that he doesn't have the assets and can only pay in instalments. They won't be happy and I'm sure they'll pursue him, but if and when they go for a CCJ, he can send his budget to the court so the court can take that into account when ordering a repayment schedule. It should be painful but survivable - the court won't expect him to go hungry or not pay rent to cover this debt.

TBagpuss

[/quote]however a witness saw the person and was later identified, and he was not the named driver of the policy. The name too was passed on to the police but as expected there's nothing they can do. [/QUOTE]

Has your brother passed the deatials of the other car, the witness and the name of the person identified on to his insurer?

What type of insurance does he have?

He may be able to make a claim via the drivers insurance or through the MIB, or he could make a claim directly against the person who was identified as the driver, if the witness is cetin and is willing to provide a statement and to attend court.

In the short term, as others have siad, his best bet is to see whether he can borrow at a more affordable rate to pay of the outstanding loan (and perhaps to buya replacement vehicle) or to negotiate an affordable level of repayments until the debt is clear.

ParkerJ

I did as told look into the MIB but apparently they can only recover any excess he has on his policy. Which I suppose it better than nothing.

I'm just baffled the fact that other people can go around damage other property get away with it and leave people in debt.

Obviously no one was injured in this accident, however if someone were, would this have been delbt with correctly?

andyfromotley

7 miles to work??? He needs to get a bicycle. Super low running costs and dead cheap to purchase, often even free. Health and fitness is a free by product too!

lovehackney

if the finance company demand the money, maybe he would be better giving them all of the insurance money to reduce the outstanding amount.
7 mile journey to work isn't far - he could get a cheap bike for £50 secondhand and it will take less than an hour to cycle

ParkerJ

Regardless how far the journey is the fact is he had a car, now doesn't. The car wasn't just for getting to work.

Even if he did get a bike, it still goes off the topic that there's a £3,000 shortfall.

Also to be clear, the insurance payout goes DIRECTLY to the finance company he's not taking a £2,000 chunk, then moaning, he can't pay £3,000.

The car isn't the issue, more about the best way to deal with this problem.