URGENT: Car Finance / want to avoid Repossession

Lamplighter

Hi there


Thanks for all the replies. I've been away for a couple of weeks, and still have possession of my vehicle.


As an update, I've spoken with TLT (the solicitors acting as recovery agents). They were actually quite helpful on the phone:
- confirmed that the vehicle was protected (I've paid more than 1/3 total finance value) hence they needed a Return of Goods order from the court;
- advised me that they've not started proceedings yet, but that in any event I would receive notification from the court of any hearing date;
- said they would relay my offer of an immediate full arrears payment in order to resume installments per the original agreement;
- said that in case of a hearing, I should in any event go to the court and state my case that the missed payments were due to a temporary issue rather than affordability, and that I have offered a full arrears clearance, as the judge has the power to rule in my favour.


Am I being correctly advised as above? Given the protected status, am I safe to leave the car parked on my drive for the time being without fear of a midnight collection?


As a further update, I contacted the lender (BPF) again following speaking to TLT, who said that they had received notification of my offer of full arrears payment, but would respond to reject the offer. It seems therefore that it will go to court.


What prep should I do for the court, beyond a statement of means, proof of income, copy of the offer of full arrears payment (which I sent by email to TLT following the telecon), and proof of the house moves that caused the cashflow disturbances? Would I benefit from legal representation, given that there will be a cost involved? Am I likely to succeed? Do I need to consider a Time Order application?


Thanks again in advance.
Kind Regards

Lamplighter

Hi there

I wondered if the lack of responses was due to me posting on a Friday night / Saturday morning, so am re-posting my questions. Thanks in advance of any guidance.

As previous message, TLT advised me to make an offer that they would pass to BPF, which I did. The offer was to clear arrears in full immediately (roughly 3 months + £50) and continue payments as original schedule. I subsequently learned by phone that BPF head of recoveries had reviewed and declined the offer.

Therefore the matter will go to court, as I believe in order for a Return of Goods order to be obtained (I have paid over a third of the financed amount). TLT advised me to attend, and to bring evidence to the judge of the offer, together with statement of means, and reason for the arrears (temporary cashflow issue as unplanned move of house, waiting for return of deposit).

1) am I getting fair advice, is the car safe from the threat of removal without a court order, and will I have notification from the court before the hearing?
2) should I wait for the hearing, or contact the court in advance (for a time order?) even before the notification?
3) do I need legal representation at the court, or would I be able to make my case by myself?

Thanks and Regards
Lamplighter

Herzlos

You should be able to represent yourself, but I'd try to avoid the court stage as they'll try to burden you with the costs (of the court, the reposession etc).

Cheapest option for you that keeps the car at this stage is to get a loan to cover full settlement of the finance deal (buying the car from them). I'd look into that first. They should have given you a settlement figure as part of the demand.

Essentially, they don't want you as a customer any more since you defaulted on the repayment plan and now just want their money back (directly, or by selling the car and chasing you for the rest).

If your credit rating is already in tatters you might be best just voluntarily giving them the car back and setting up a repayment plan for the remaining balance, but you'd be much better off buying the car off them.

What's the car worth and what's the settlement figure?

Lamplighter

Thanks for the reply
Finance was £24k (including projected interest over the 4yr term) with £8.5k already paid, therefore £15.5k outstanding, of which £8k is the balloon.
Car value significantly less than £15.5k, as high mileage, probable value £9-11k.
Repayment is £375pcm, which is well within my budget.
My problem is cash, not cashflow (I have a good income incl. a car allowance), and the issue was demonstrably temporary, hence re-instating the finance on the current vehicle is by far my preference.

Herzlos

Re-instating the finance on the current vehicle is not an option. They gave you 2 options (pay it off or hand the car back) and refused the offer to reinstate the payments. They no longer want you as a customer. It sucks, but that's life.

If you want to keep the car, you'll need to arrange an entirely new finance agreement with someone else. You might struggle a bit to get a £15.5k loan on an £11k car if you were to go down the car finance root. As a personal loan you'd be OK, if you pass the affordability/credit checks.

Go to your bank first, and see what they say.

k3lvc

Given you have a car allowance does your employer offer a subsided loan (or actually a loan of any description) than would not be checked via credit agency ?

Lamplighter

Thanks


@Herzlos - taking a loan to cover the finance on the car is not an option available to me. I understand fully your point about the finance company offering two options - full balance repayment or return of the car - and not wanting to re-instate the payments. However, what is the purpose of the court hearing? What am I trying to achieve there, if not to re-instate the agreement? What is the time-order about, and is it relevant here? Why would TLT advise me to pursue this route?


@k3lvc - unfortunately an employer loan is not an option - they are a multi-national company with '000s of employees, hence are quite rigid to their policies and procedures, and wouldn't risk to set a precedent in this case.


Appreciate your responses, thanks.

Sparx

Honest question OP - what was the reason you missed 2-3 payments initially, then on a repayment plan, missed another?

Surely you prioritise secured debts so this doesn’t happen. If cash isn’t an issue I don’t understand how you are where you are?

Herzlos

The court hearing is to allow repossession of the car, I assume.
You offering to clear the arrears shows an attempt to be reasonable but I'm not sure it'd be enough. Can you offer any further partial payment? They might be ok if you can half the balance, for instance.

The court hearing and car collection will easily add £1000 to your outstanding bill so I'd strongly recommend sorting something out direct.

molerat

As you have paid over the 1/3 they cannot just rock up and take the car, they need an order from the court. They no longer wish to extend you finance just cut their losses and get what they can as quick as they can. They will then chase you for the balance which could result in further court action and a possible CCJ.

As I see it you have three options :

1. Pay off the outstanding settlement amount.
2. Voluntarily hand the car back and take the hit re shortfall and fees.
3. Put your case to the judge that they are acting unreasonably and you will pay back arrears and keep to the agreement in future. If you lose you take the hit re shortfall and higher additional fees.