Car finance problems

Hi, I’m looking for some advice.

back in 2018 I brought a car in finance in 2019 less than a year later I changed my car but due to it being in negative equity instead of adding that to the new finance agreement I did a voluntary termination. The car was collected pictures taken and loaded on to the truck I signed to say there was no damages caused and the drive has collected the vehicle.

moving forward to 2023 I’ve checked my credit report to see the finance company from back in 2018 is still there with an outstanding balance of £845 so I have them a call to see what and why.

inwas told there was £2800 (+- a few quid) worth of damage to the car after inspection. And I had £1475 to pay. So i asked why I the 3 amounts differ. He said it had defaulted and accrued interest from what was on my credit report. And I had to pay half of it as it was a voulantry termination and they had to pay the other half. 

I explained there was no damage to the car when it left my possession and I followed the driver round while he photographed the car. At no point did he mention any damage. So I asked for photographic proof of the damage to be told it was over 4 years ago they no long have this. As it was done by a third party (after research seems to be common practice that finance company’s use to complete a voluntary termination) but he said you have signed a letter we sent you accept the damages and charges. Which I told him I haven’t received anything since the confirmation of the VT so j in asked for him to send me proof of this he said he can’t because the VT was carried out by this third party so I asked for their number in the hole I could get this my self. To be told he can’t give me that as the company that carried out the VT has now gone bust so I said ok then can I just ask why after over 4 years have you not once contacted me to chase this “debt”  my number email address and address haven’t changed in that time why has it took for me to come across and phone up to query it for you to tell me about it. 

I don’t know where I stand in this as I know there was no damage. The car was around 9 months old. The only reason I changed it so soon was because we needed a bigger car. 

But on the same hand I hand I can’t prove there was no damage either and why would they not contact me once in over 4 years 

any help or advice would be massively appreciated as we’re abit if a stake mate now 


  • Ectophile
    Ectophile Posts: 7,240
    First Anniversary Name Dropper First Post
    It will cost you nothing to raise a dispute with any credit reference agency that shows the defaulted payment.  I'm not sure it will achieve much, but you might as well do it.  Instructions on how to dispute the claim will be on their web sites.
    If it sticks, force it.
    If it breaks, well it wasn't working right anyway.
  • Good morning Ectophile, I’ve tried this twice now and both times it wasn’t successful:(
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