MSE News: Finance company seeks jail time for customer who defaulted on car loan

HornetSaver

I had a car loan in the recent past. I did not own the car until I fully repaid it - the finance company did.

Same principle here. There is a court order for the borrower to return the lender's property, which has been ignored. Had he returned the car and refused to pay them the debt outstanding, that would be an entirely different issue.

DynasticDux

We are in the UK - so we call it PRISON
We are not is the US - so don't call it JAIL

dekaspace

Im confused, if the loan was around 9k and the company wanted 11k where did the extra come from? Even assuming the person made zero repayments where would the 2k extra come from as fees shouldn't be that high.

Also unclear as it makes out he has to give the car back and pay the amount of the debt when shouldn't it be either or.

redpete

DynasticDux wrote: »

We are in the UK - so we call it PRISON
We are not is the US - so don't call it JAIL

I'm in the UK and sometimes I call it PRISON, sometimes I call it JAIL and very occasionally I might call it GAOL.

rtho782

jamesd wrote: »

A fake quote that has the essence of what happened: "You pay me £20,000 four times a year or I'm going to default on several hundred loans to me made by your consumer customers". Yes, I'd say that the individual concerned deserves time in prison. Not for the debt. For the extortion that used the debt default as it's threat that was then carried out.

So?

Let's say I have a loan from my employer and am struggling financially.

I default, lose my job, employer gets nothing. This is fine going by your example.

If I instead ask for a payrise, as I'm struggling, and otherwise won't be able to pay my loan, they say no, so I default, lose my job, employer gets nothing, it then becomes extortion?

At least I was looking for a way out in the 2nd example.

Your example is even sillier - he's not an employee but a service provider, who is free to put his prices up whenever he likes.

LadyDee

dekaspace wrote: »

Im confused, if the loan was around 9k and the company wanted 11k where did the extra come from? Even assuming the person made zero repayments where would the 2k extra come from as fees shouldn't be that high.

Also unclear as it makes out he has to give the car back and pay the amount of the debt when shouldn't it be either or.

Easy enough to rack up thousands in Bailiffs' costs - they add on around £500+ for each hour I believe, and they've probably been round to the debtor's several times looking for the car.