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jennab1985

Hi,

A few years ago i managed to get into about 10k worth of debt in bank loans which my ex partner had taken out in my name through online applications and then transferred the money into his own account once it was paid into mine via online banking so it was months before i found out what he had done as i very rarely checked my statements back then. I ended up not being able to pay the loans back when i lost my job and ended up having to take a lower paid job so i contacted step change debt charity who put me on a debt management plan in order to pay back however i have since had to take yet another pay cut which means that i cant afford the monthly payments anymore, well i have been paying them however it means im getting in debt in other ways in order to survive month to month.

I have a care on finance that i pay £200 a month for and without this extra outgoing i could afford to pay the debt off without getting further in debt. I have fell behind on payments for the car also (i think im around £500 behind where i should be upto with payments) so i was wondering if there is anyway i can hand the car back to the finance company to at least unburden myself from this monthly expense? It will mean walking the 4 miles to work and back every day but will be worth it to take some of the strain off. Does anybody know where i would stand with this? I think i have about 18months left on my agreement plus around £3000 balloon payment at the end which i am never going to be able to afford to pay off anyway.

I just feel like my life is falling to pieces, i was a confident young lady a few years ago and now i am a wreck. I had a good job which was well paid and everything has changed over the past 3 years due to being stuck in that abusive relationship i lost my job and ended up stuck in this debt and now face having to give my car up too.

Thanks You

National_Debtline

Hi Jennab1985,


The car sounds like it could be hire purchase/ conditional sale and if that is the case you can voluntarily terminate the car, as long as the lender hasn't sent you a default notice that has expired yet.

To voluntarily terminate the car you will need to send a letter to the lender, recorded delivery and keep a copy. You will be liable for 50% of the full agreement, minus what you have paid to date, plus any excessive wear and tear. You can then arrange to return the car to them and you must take photos of the interior and exterior of the car when you return it to show its condition.


Any money still owed will become a non priority debt like your bank loans and can be paid at a rate you can afford. You may find our factsheet and sample letter helpful - https://www.nationaldebtline.org/EW/factsheets/Pages/hire-purchase-debt/hire-purchase-and-conditional-sale.aspx


Laura
@natdebtline

JustAboutThere

Can you contact Step Change and ask for a review of your DMP, based on your lower earning capacity?

jennab1985

Thank You Laura!

So i would write a letter to the actual finance firm just saying my circumstances have changed i can no longer afford the car?

I could Justtalk however i only pay around £100 a month now would rather get it paid off ASAP then i can start to build my credit history again sooner

National_Debtline

Hello again,


You can offer them an explanation as to the reason why you are terminating the agreement if you want to, but you are not obligated to. It is your right under Section 99 of the Consumer Credit Act to terminate the agreement so you are not required to give any further reason than that.


Use the sample letter at the end of our factsheet to ensure you quote the correct sections of the Act, good luck.


Laura
@natdebtline

MrsTinks

Did you report the fraud by your ex? Did you try to fight this in any way?

jennab1985

Thanks Laura.

Hi MrsTinks, no unfortunately I didn't as I was in a pretty bad way back then and being treated terribly the fear was too much. I just packed my bags up and left the house one day and never reported anything due to just wanting to move on with my life and not wanting to have any further dealings regarding my ex. I was in a very controlling relationship where I didn't have access to my online banking etc so I couldn't see that I had paid loan repayments on the loan for over 6 months, it was only when I lost my job due to not being able to go in AGAIN through having been assaulted by my ex that I actually started to look at my finances so I wouldn't have a leg to stand on if I did go to the police

salfordfreddy

Hi JennaB,

I've been reading this forum for a while but never joined, I just joined today to reply to your post.

Regardless, I'd say it's still worth going to the police and reporting this. It doesn't matter that you've been paying for 6 months, as you say its the fear that has driven you this far.
This is fraud in every sense, so well worth going down the police avenue to see if you can rid yourself of this unfair debt.

Good luck and stay strong!

MrsTinks

If you feel you can face up to it then yes it's absolutely still worth reporting it to the police. It will run the risk of of course agitating your ex which is a decision only YOU can make. Would this endanger your safety?
We can't make that evaluation for you. Forget about the time lapse for now, the police do actually understand the potential fear you would have been in for your life which would have caused you to simply accept the debt and deal with it rather than face him

jennab1985

Hi Salfordfreddy,

Many thanks however it has been 2 years this Christmas just gone since my ex was last in touch with me, that's gone from him turning up at my mums on a weekly basis kicking off and smashing property up when he can't get to me to completely leaving me alone so I would rather he never herd my name again to remind him of me if you understand what I mean? I would rather just pay the debt and never have to speak of him again to be honest

jennab1985

Yes thats the problem MrsTinks, if the police contact him then he will no doubt start contacting me again which i really dont wants so i think i am just gonna have to take the hit and pay it off myself.

I know this sounds pathetic as i never saw a penny of it but rather than have to go through more trouble with him i would do anything.