Lease car repossession

Frazer01

Hi, can anyone advise on options, if any, or procedure when lease car has been passed to collectors for repossession?
Daughter missed odd payments but maintained payments for last 6 months and guy turned up to collect car, when she wasn't at home.
Finance (VW) company say it's nothing to do with them now, and we can't get any info from debt collector company as to the procedure to follow.
I'm shocked they can just repossess if she's been paying, albeit not making up the missed payments.
Is all lost? will she have more debt/charges when/if she gives the lease car back, and how will she find this info out?

Any info/advice would be appreciated as we're new to this car leasing game!
Thanks F

loskie

I imagine that there is more to this than your daughter has told you. She has probably been given umpteen chances to make good the shortfall and possibly been to court too. Reposession will be a last and costly resort for the finance co.
You possibly don't want to believe what I am saying however it is sadly likely to be true.

AndyMc.....

Frazer01 wrote: »

Hi, can anyone advise on options, if any, or procedure when lease car has been passed to collectors for repossession?
Daughter missed odd payments but maintained payments for last 6 months and guy turned up to collect car, when she wasn't at home.
Finance (VW) company say it's nothing to do with them now, and we can't get any info from debt collector company as to the procedure to follow.
I'm shocked they can just repossess if she's been paying, albeit not making up the missed payments.
Is all lost? will she have more debt/charges when/if she gives the lease car back, and how will she find this info out?

Any info/advice would be appreciated as we're new to this car leasing game!
Thanks F

Thing is she hasn't being paying.

Frazer01

Thank you, yes, you may be right (it could be tip of a debt iceberg), but we have seen the letters sent to her, and she's def not had letters about a court date, summons nor letters from court with a judgement etc.

The latest 'statement' letter from the finance company dated September clearly shows her regular recent payments, it states she owes 3 payments prior to April this year.

I just don't know what to expect regarding further demands for payments as the lease has 19 months left (3 year lease), especially if the car has been repossessed, or 'voluntary surrendered' as the guy put it!

AdrianC

So she's been three months behind for at least six months...? And she's only 17 months in now?

Has she, y'know, considered paying the payments she's missed? Radical thought, an' all...

Frazer01

I'm asking for advice on procedural action, not comments on the actual missing payments, thank you! and it's gone past the point of making up the missing payments.....it's been passed to a collection company

neilmcl

First off, is this actually a proper lease, ie contract hire, or is it a finance agreement, eg, HP or PCP. If it really is a lease then they can take back the car at any time without having to take out court proceeding etc. In fact even if it was an HP/PCP they could probably do the same as the car belongs to the finance company up until it's been fully paid off.

neilmcl

Actually having read your post mentioning "Voluntary Surrender" it would suggest that this is not a lease but a finance agreement (I really wish people wouldn't keep using the term lease when describing HP/PCP agreements).

Repossession and Voluntary Surrender are not the same, and as it's the latter then your daughter would have agreed for them to take the car. It will now be sold at auction to pay of the finance and if it doesn't cover the amount still owed then they will come after your daughter for the rest, which will be the point at which it'll go to court should she not make an arragment to pay.

loskie

maybe a visit to Citizen's Advice would help you all out, deal with the debt responsibly and try to bring this all too common sad tale to an end.

Herzlos

Frazer01 wrote: »

I'm asking for advice on procedural action, not comments on the actual missing payments, thank you! and it's gone past the point of making up the missing payments.....it's been passed to a collection company

That only really leaves her 2 options:
1. Contact the debt recovery company and get a settlement figure to pay them off and keep the car (though a loan to cover it may be difficult since her credit will be shot). They may allow a payment plan for the arrears whilst letting her keep making the payments. She could then either keep the car or sell it for a fairer market rate.

2. Give them the car back, as soon as possible (the fees will increase as time goes on and she's going to be in the red already). They'll sell it at auction and bill her for the shortfall.


She needs to get her head out of the sand.