PSA Finance PCP No Collection - Debt being chased

mitooki

Hi, my 3 year PCP with PSA Finance came to an end on 11 May. Their collection agency Manheim is not currently collecting due to coronavirus.

I informed PSA in February that I intended to return the vehicle at the end of the contract. They acknowledged this and gave me a website link to arrange collection after 11 April (the date of the last regular payment before the balloon payment). I asked them how to proceed via email but they could not state when they can collect the vehicle. They did say though: "I can assure you that you will not be penalised if Manheim are unable to collect your vehicle by its end of contract date, due to social distancing, or any other unforeseen circumstances that may arise, relating to the current epidemic"

Since 11 May they have started to pursue me for the outstanding balloon payment, sending a "Notice of Sums in Arrears under Hire Purchase under section 86B of the Consumer Credit Act 1974". Several calls to PSA customer service but they say they cannot stop the debt from being chased. Surely there must be other people affected in this way, I can't understand why they have not built a process to handle this better.

I'm very keen to avoid an adverse impact on my credit report for something that I have no control over. I have submitted a formal complaint but I understand this could take up to 8 weeks to review.

I'm at a loss at what to do next, this is a lot of added stress at a difficult time.

Thanks for any advice.

AdrianC

What does this "notice of sums in arrears" actually say?

It may well be nothing more than a stroppy header on an account statement. You are in arrears, according to your contract. You know this, they accept it.

Ectophile

AdrianC said:

What does this "notice of sums in arrears" actually say?

It may well be nothing more than a stroppy header on an account statement. You are in arrears, according to your contract. You know this, they accept it.

It's not in arrears if the contract has been properly terminated by the customer, before the balloon payment was due.

mitooki

AdrianC said:

What does this "notice of sums in arrears" actually say?

It may well be nothing more than a stroppy header on an account statement. You are in arrears, according to your contract. You know this, they accept it.

I understand, of course. The contract is based on paying the balloon payment and keeping the vehicle or returning it to end the contract. Through no fault of mine they have been unable to collect the vehicle but they are pursuing the debt as if no communication had been made.

For what it's worth, the notice seems like a standard notification of being in arrears:

This notice is given pursuant to section 86B of the Consumer Credit Act 1974 by, PSA Finance UK Limited, 61 London Road, Redhill, RH1 1QA, Telephone Number: 0345 313 3817 as you are behind with the sums payable under your agreement below. Please contact PSA Finance UK Limited as soon as possible to discuss your account.

Description of the agreement to which this notice relates: Hire Purchase Agreement dated XXX between: PSA Finance UK Limited and XXX Agreement number: XXX....

The opening balance under the agreement at the date on which we first became obliged to serve this notice (being the date on which your arrears under this agreement reached the total of 2 complete monthly payments): £xxx

The amount of the shortfall under the agreement at that date: £xxx

If you want more information about which payments you failed to make please get in touch with us. We are required to give you this information within fifteen working days of receiving your request for it.

Default sums and interest

You may have to pay default sums and interest in relation to the missed or partly made payments referred to in this notice. Please contact us if you would like further details. This notice does not take account of any payments received after the date of the notice.

Notices

For so long as you continue to be behind with your payments by any amount, you will be sent notices about this at least every six months. We are not required to send you notices more frequently than this, even if you get further behind with your payments in between notices.

AdrianC

"You may have to..." (or you may not)
And what's going to happen about it...? Nothing, until the next stroppo in 6mo time.

mitooki

AdrianC said:

"You may have to..." (or you may not)
And what's going to happen about it...? Nothing, until the next stroppo in 6mo time.

I suppose the worry is that it's going to impact on my credit report, presumably a letter of this nature will lead to that before long?

Jumblebumble

mitooki said:

Hi, my 3 year PCP with PSA Finance came to an end on 11 May. Their collection agency Manheim is not currently collecting due to coronavirus.

I informed PSA in February that I intended to return the vehicle at the end of the contract. They acknowledged this and gave me a website link to arrange collection after 11 April (the date of the last regular payment before the balloon payment). I asked them how to proceed via email but they could not state when they can collect the vehicle. They did say though: "I can assure you that you will not be penalised if Manheim are unable to collect your vehicle by its end of contract date, due to social distancing, or any other unforeseen circumstances that may arise, relating to the current epidemic"

Since 11 May they have started to pursue me for the outstanding balloon payment, sending a "Notice of Sums in Arrears under Hire Purchase under section 86B of the Consumer Credit Act 1974". Several calls to PSA customer service but they say they cannot stop the debt from being chased. Surely there must be other people affected in this way, I can't understand why they have not built a process to handle this better.

I'm very keen to avoid an adverse impact on my credit report for something that I have no control over. I have submitted a formal complaint but I understand this could take up to 8 weeks to review.

I'm at a loss at what to do next, this is a lot of added stress at a difficult time.

Thanks for any advice.

I wonder if Peugeot who claim they cannot stop the debt being chased ( which must be nonsense) will equally claim that they cannot avoid reporting you to a CRA .
I would personally email their CEO and ask them if they are aware of Ferguson vs British Gas.