Moneybarn car finance

loopylisa40

Hi I have car finance with moneybarn, I have got behind with payments due to having full knee replacement surgery in August, they are saying I have to pay £721 before the 3rd January which I haven’t got, the amount payable under agreement is £9007.80 and I have paid £5258.60 up to date, I have received a Default notice, they’re saying if I don’t pay it by the 3rd that will take steps to take the car off me, I have sent them several messages asking if they can adjust my payments to cover the arrears but they don’t reply and just keep sending me letters, can anyone help.

Herzlos

If you're completely stuck, you're almost certainly better selling the car yourself and clearing what's left of the finance. That way you won't be hit with various fees and would get to keep any equity.

Beyond that, can you phone them and arrange something?

It may also be worth contacting a debt charity like step change for advise.

Grumpy_chap

loopylisa40 said:

Hi I have car finance with moneybarn, I have got behind with payments due to having full knee replacement surgery in August, they are saying I have to pay £721 before the 3rd January which I haven’t got, the amount payable under agreement is £9007.80 and I have paid £5258.60 up to date, I have received a Default notice, they’re saying if I don’t pay it by the 3rd that will take steps to take the car off me, I have sent them several messages asking if they can adjust my payments to cover the arrears but they don’t reply and just keep sending me letters, can anyone help.

Follow the advice from @Herzlos

In addition, consider preparing your SoA (Statement of Affairs) and sharing in the DfW (Debt-free Wannabee) area of the forum.

k3lvc

Do you have any equity in the car to allow it to be sold/clear the balance ? (get a quick view of what WBAC will offer)

Given the amount paid vs total payable I'm assuming you've had it a while  

Goudy

You can terminate if you have cleared 50% or more of the total amount but their terms state plus any charges and appears, so it looks like they could still chase you for them as well.

First thing you need to do is speak to them.

Herzlos

Goudy said:

You can terminate if you have cleared 50% or more of the total amount but their terms state plus any charges and appears, so it looks like they could still chase you for them as well.

First thing you need to do is speak to them.

I thought you couldn't voluntarily terminate if the account was in arrears?

Goudy

https://www.moneybarn.com/how-it-works/faqs/existing-customers/voluntary-termination-work/

That reads to me the borrower is liable for 50% PLUS any charges and arrears.
You would think it would be worded 50% UNLESS there were any charges or arrears.

But writting that, Moneybarn aren't known for their straightforward and understandable terms & conditions and haven't in the past treated customers fairly when they have fallen behind with their payments.

Obviously not my opinion, but the FCA's which is why they fined they nearly 3 million and they had to compensate some customers over 30 million.

Best thing to do is speak to them.

I don't know the terms of the agreement, but I suspect with APR as high as 48.9% even though the OP has paid over 5k in repayments on 9K, there's probably little if any equity in the car to cover the outstanding, particulalry if the arrears have attracted heavy charges.

The car might only have been £5000 or so back when it was purchased, which was likely some years ago if they have already paid over £5000 in repayments.

k3lvc

Herzlos said:

Goudy said:

You can terminate if you have cleared 50% or more of the total amount but their terms state plus any charges and appears, so it looks like they could still chase you for them as well.

First thing you need to do is speak to them.

I thought you couldn't voluntarily terminate if the account was in arrears?

Likewise for me - but I assumed @Goudy had found something specific to Moneybarn in their terms