Voluntary Termination - Default registered

Axle81

Hi

I Voluntarily terminated my loan agreement on a 2nd hand car in February this year. It was half way through it's term so I was able to do this and the company were happy, I delivered the car to an auction house and never heard a word since.

So, it is now October and I have discovered there is a default registered on my credit file applicable to this loan.

I have phoned the company and they said the vehicle was sold in July but there were repairs required and I owe them £1,100.

Now other than the gears being a bit stiff as it'd been sat for a while, it was fine and I took exterior and interior photos and there was no wear and tear that you wouldn't expect on a 10 yr old car that'd done 130,000 miles.

What are my rights here please?

a) Nobody has tried to phone or write to me, no emails, nothing.
b) I'm sure company's are supposed to issue Default Notice's in some official way so you know about them before just finding them on your credit file (Like a CCJ).

Many thanks
Axle

Axle81

To add - I have not defaulted on any payments, this was never part of the original credit agreement. If I do owe anything for these repairs then they should be outside of this arrangement and go through Small Claims or the like. Also is it really reasonable not to notify me the car requires repairs? This is 8-9 months ago, if it's something mechanical as far as I'm concerned they'll need to prove it? I don't know what they've been doing with the car since then, it's not mine any more!

DoaM

Have you got VT paperwork from them that confirms the VT was accepted? Remember that VT is based on 50% of the loan value (including interest and other charges, which are added at the start) and not 50% of the loan term.

Axle81

Somewhere I do yes... I have asked for another copy though.

I have since spoken with the company again and asked why they would not contact me for 8 months to tell me repairs were required. She said I should have been phoning them to "check" apparently and "letters to customers are going out in the next few days". Unbelievable, so I was supposed to just guess and keep phoning them? They're sending me all the paperwork with details of these alleged repairs and I've also asked for receipts.

Also my research suggests I'm correct - this default should not have been served as it sits completely separate the original credit agreement. What I apparently owe is not a form of Credit at all.