URGENT: Car Finance (Moneyway) - Reposession

SteveMSE1890

Question answered. Thank you

National_Debtline

Hi Stevewright,


With hire purchase agreements the lender can terminate the agreement if there are arrears as the vehicle is still theirs until the final payment is made. They will do this with a default notice and once this expires they are not required to consider any more offers. When a lender terminates an agreement you are liable for 100%of the agreement, minus the money paid to date and minus the resale of the car at auction (if they can sell it).

If you have paid less than 1/3 of the total agreement they can repossess from a public road without the need of a court order. However, if you have paid more than 1/3 they will need to go to court for a Return of Goods Order. If they need to do this then you can try and prevent the repossession by replying to the court forms and making an offer to pay. This is at the courts discretion whether to allow the agreement to continue or whether to let the hire purchase company continue with the repossession.

Your other option is to apply for something called a Time Order. Unfortunately, this is an expensive application (£308) and, again, this is at the courts discretion. The court will assess whether your offer to clear the debt is reasonable and just to both parties. We have a factsheet on this that may help - https://www.nationaldebtline.org/EW/factsheets/Pages/time-order-hp/hire-purchase-and-conditional-sale.aspx# You may also want to speak to one of the free charities to discuss this further.


Laura
@natdebtline

StopIt

What do the T&Cs say IRT late/missed payments?


If they show that you've indeed defaulted against the agreement they have every right to "call in" the loan as stated. If the loan was secured against the car they can re-posses it also.


Get legal advice ASAP.


Edit: As above, cross posted.


It looks like you will be on the threshold of the 1/3 of the agreement stated above. If it's below that, they can just take the car, and either way, a court is unlikely to stop a repo.


Also, if the car only nets £2 at auction, you may charged for the rest of the monies outstanding also.

Shakin_Steve

Have you read through the T&C's? What does it say about failure to make payments? You're asking the question as if the situation is subjective.....it is not. They will have every right to repossess if you are behind with your payments.
Sometimes these companies can be helpful, and look at the situation sympathetically. But if they've decided to dig their heels in, I don't see that there's much you can do.

EDIT: Two replies while I was typing, sorry if I repeated anything said.

Brock_and_Roll

Looks like a repo is likely to be happen without full balance paid. Whilst the OP could buy some extra time by parking the car around the corner etc etc, ultimately this is not to be advised as it will just increase the debt further.


The OP says £6k is outstanding, so if the repo costs are say £500, the sale costs £500 and they auction the car makes £2k, then they are going to come after the OP for the £5k balance - ouch!!


Frankly, if it were me, I would beg borrow and steal to pay the whole thing off now and mark the whole experience down as a life lesson learnt.