Car Loan Default are they coming?

chepe

Hi guys so I was 3 months behind with my car loan repayments due to an unforeseen health issue that unfortunately left me in a pickle.

The bank then asked me to send an expense sheet and they came up with a reduced payment for two months which ended at the beginning of this month.
They contacted me to say please contact us to agree future payments and return to normal payments and the arrea's.

I rang them and explained that I am on furlough, and if possible could they continue with the reduced payments till I'm back at work and then I'll be happy to resume.

The customer service agent then said, why not consider returning the car etc as you may end up in more debt.

I explained to him that I am happy to look at these three options but I'm not committing to them as I need to still use the vehicle.

He said he would send out three options

1. Final settlement figure
2. Part exchange at dealership for cheaper car
3. Voluntary termination but I'll be liable for the outstanding amount.

Before he hung up he mumbled something which I thought was weird where he stated that don't worry if you can't make any repayments for the next few months as repossessions can't be done at the moment due to the virus.

I should have asked him what he meant but just thought he was talking off cuff.

It's been a few days since the call and I decided to log into my online account and it's giving me an error message as if no account exists.

Unfortunately they closed to ring and find out what's going on.

So my question , was I duped into some settlement despite having a previous agreement in place to settle the matter and no fault of my own this time now left in the lurch.

Any advice will be greatly appreciated.

PaulW922

You have not been conned as you have no ‘right’ to reduced payments owing to an inability to pay. However the payment holidays owing to CoVid furloughs are Government sponsored. I’d suggest that you continue to pay what you can in the interim as whilst it is probably true that repos are not happening right now they will certainly restart at some point and having arrears beyond the payment holiday scheme could lead you vulnerable to repossession. That happened to me about 15 years ago and it cost me a lot of money to resolve. 

grantmondo2010

Though my blue blooded neighbours are already up that creek wih no paddle or boat, they're already worried about how they're going to pay for their childrens education, even going so far as to try and get a partial refund on their school fees due to the schools being closed, and they're worried that they may be forced financially to send their children to state schools.  They are already trying to sell one of their cars - the only one they actually own, have cancelled the leaees on the three cars that they leased, another they defaulted on but are trying to keep it until someone comes to repossess it,  have changed their shopping habbits from M&S, and Waitrose to ASDA, and Aldi/Lidl - places that before the whole covid 19 thing they'd turn their noses up at as being beneath them, this has hit them extremely hard financially to the point where it is putting serious strains on the family budget - they've maxed out all of their credit cards and are living in their overdraft, and serious strains on their marriage/family life.  They are talking about declaring bankruptcy and selling their home 40% below market value - 

[Deleted User]

Sounds like they have been living way beyond their means for a long time. 

Why do people put them selves under so much financial pressure that the loss of income for a few months can ruin them?
nowt wrong with state school or Aldi. 

MinuteNoodles

grantmondo2010 said:

Though my blue blooded neighbours are already up that creek wih no paddle or boat, they're already worried about how they're going to pay for their childrens education, even going so far as to try and get a partial refund on their school fees due to the schools being closed, and they're worried that they may be forced financially to send their children to state schools.  They are already trying to sell one of their cars - the only one they actually own, have cancelled the leaees on the three cars that they leased, another they defaulted on but are trying to keep it until someone comes to repossess it,  have changed their shopping habbits from M&S, and Waitrose to ASDA, and Aldi/Lidl - places that before the whole covid 19 thing they'd turn their noses up at as being beneath them, this has hit them extremely hard financially to the point where it is putting serious strains on the family budget - they've maxed out all of their credit cards and are living in their overdraft, and serious strains on their marriage/family life.  They are talking about declaring bankruptcy and selling their home 40% below market value - 

Quite funny how you're slagging them off when in a thread you started on the Credit Ratings board you're posting how you've got a crap credit record because of defaulting which is ruined and you're asking how to protect your wife's credit history because you've not paid your rent for 3 months and are facing a CCJ and eviction.

MinuteNoodles

Deleted_User said:

Sounds like they have been living way beyond their means for a long time. 

Why do people put them selves under so much financial pressure that the loss of income for a few months can ruin them?
nowt wrong with state school or Aldi. 

It would appear grantmondo2010 has been doing the same as their neighbour given they've posted about having a ruined credit record because of years of defaulting, haven't paid the rent for the last 3 months and are facing a CCJ and eviction.

grantmondo2010

Deleted_User said:

Sounds like they have been living way beyond their means for a long time. 

Why do people put them selves under so much financial pressure that the loss of income for a few months can ruin them?
nowt wrong with state school or Aldi. 

Just like the government living beyond its means

John_

grantmondo2010 said:

Deleted_User said:

Sounds like they have been living way beyond their means for a long time. 

Why do people put them selves under so much financial pressure that the loss of income for a few months can ruin them?
nowt wrong with state school or Aldi. 

Just like the government living beyond its means

The difference is that the UK government has never defaulted on its debt, which is why it was able to borrow several billion pounds at a negative interest rate last week, while you seem to have made a habit of defaulting on agreements, so if you can borrow at all it will be at punitive rates.

Brock_and_Roll

John_ said:

grantmondo2010 said:

Deleted_User said:

Sounds like they have been living way beyond their means for a long time. 

Why do people put them selves under so much financial pressure that the loss of income for a few months can ruin them?
nowt wrong with state school or Aldi. 

Just like the government living beyond its means

The difference is that the UK government has never defaulted on its debt, which is why it was able to borrow several billion pounds at a negative interest rate last week, while you seem to have made a habit of defaulting on agreements, so if Oyou can borrow at all it will be at punitive rates.

Of course the UK did go bust all but technically back in 76 when we were forced to go to the IMF for the largest ever bailout - and as a result of this we were saddled with high interest rates. Luckily for the UK, North Sea oil came along just at the right time. I presume however that Grantmondo is not sitting on millions of barrels of Brent crude!

rosiesposies

from the time I earned a weekly allowance my parents educated me on always having a safety net of at least 3 months. i have been in serious financial difficulty that has in the past lasted longer than that due to back to back redundancies but it made the blow less painful (albeit my credit file did suffer from missed payments, but rather than than lose the roof over my head)
Just because people have big houses, drive expensive cars and send their children to private school does not mean they don't live payday to payday. its one thing living for the day, cant take it with you etc etc, its another to live beyond your means. maybe this whole situation will make poeple understand what is important, and what is material. 

rosiesposies

And my advice to OP would be part exchange if you can to something more affordable if you must have the car to survive.