MotoNovo have cancelled my debt?

simika

I recently received an email from XMB Welfare Support (MotoNovo Finance/Aldermore Bank)

relating to my arrears on my car finance contract. Admittedly, I got myself in a bit of a mess regarding my repayments but MotoNovo never chased me up for the arrears. I had every intention to clear this debt but then at the beginning of February received this email:  

We are writing to you about your account. After reviewing your circumstances, we are proposing to close your account, with nothing further owed.

What does this mean for you?

You do not need to make any further payments.

We will write off the outstanding balance.

We will not take any action relating to the balance.

We will not make any attempt to recover the car.

We will update your record at the Credit Reference Agencies to show your account as ‘Partially Settled’ with no outstanding balance. Please be aware this may affect your ability to secure credit in the future.

Do you need to do anything?

You do not need to do anything, however, if you would like to discuss your agreement with us, please either reply to this email or contact our team Monday to Friday, 9am-6pm, on 03301 281735 within 28 days of the date of this letter.

Can anybody shed any light on this? I assume they wouldn't do this out of the goodness of their own heart? So what's going on? Is this too good to be true or should I be exploring this further?

I recently enquired with MotoNovo about the car finance mis-selling scandal, however, have received an email today stating that there was no discretionary commision arrangement on this finance.

1. Will this come back to haunt me?

2. Are they hiding something I'm not aware of?

3. Has anybody else had a similar experience?

Thanks for taking the time to read, any feedback appreciated as I'm left feeling confused.

Mildly_Miffed

Roughly how much did you owe? What proportion of the total finance? What type of finance, and roughly what timescales?

They clearly don't think it worth chasing you any further.

Your credit history will show that you didn't pay everything owed, but they let you off. They can't then re-open it in the future.

Ectophile

It sounds like they have decided it isn't worth the effort of chasing you any more, and have written off the debt.  They have had some money from you and it isn't worth trying to get the rest.

One way it will haunt you is the mark on your credit record.  Anyone thinking of lending you money for the next few years will do a credit check and see that there's a debt that was only partially paid.  So refused credit or high interest rates as a sub-prime borrower.

forgotmyname

Although the may have written the debt off the car may still show as having outstanding finance attached which may make
it difficult to sell in the future.

Family member went bankrupt and allowed to keep their car but when they got back on their feet and went to buy another car
the garage said it's still got a finance marker attached to it.  They said it's probably an oversight and to contact them to get the
marker removed. Not sure if they tried and failed but they eventually sold the car to a friend of a friend who was not bothered
about the marker.

Arunmor

"I recently enquired with MotoNovo about the car finance mis-selling scandal"

Jeez, that was a bit cheeky...lol