Bankrupt and car finance...wont take the car back

jenryan75

thanks everyone, i have pmd debt doctor soi just awaiting a reply.
Thanks again
Jennie

debt_doctor

Hi, Firstly make sure it is actually HP/ conditional sale agreement, and not just a personal loan.

If it is HP then the legal owner of the vehicle is welcome finance and you are the registered keeper. Write to welcome finance by recorded delivery and ask them what they intend to do with their vehicle.

Point out in the letter that if they do not recover the vehicle in 14 days then you will send off the registration document to the DVLA and transfer the registered keeper as Welcome finance and will no longer take any responsibility for it. You would need to mark the vehicle as 'sold' when you send off to DVLA.

You are responsible for taxing the vehicle at all times and any associated fines whilst you are the registered keeper. A vehicle also requires insurance whilst on a public road even when parked / not being driven.

Let us know what response you get.

DD.

jenryan75

OK update!!!
Rang again this morning to Welcome and they said they will pick it up but didnt say when. Just my luck also this morning we had community bobbies looking at the car at told us it will be clamped by DVLA soon if not moved as it is not taxed even though its in a car park its still the quenns highway apparently, so i rang CAB and they told me to ring Official Receiver which i did and they rang Welcome and they said the same they will move it and will try for ASAP and thats it so im still stuck. Fingers crossed DVLA dont turn up b4 Welcome or we will be charged for removal and crushing of car!!!!! This is so unfair!!!

RAS

Have you sent off the regsitration document so that Welcome are the registered keeper? As advised by Debt doctor?

Then they will have to pay for it being crushed:D .

jenryan75

I said that to the Community Bobby today, he was a nice guy really and he told me that would be illegal as welcome have not agreed to it.

Brassneck

There is a "trick" you can play which is totally legal.

If you inform the company that you require the goods removed within 14 days otherwise you will exercise your legal right to take full and legal ownership of the goods as you deem the company to no longer have a vested interest, you can legally keep the goods if they dont comply.
You MUST word it correctly, you MUST date and get signed for delivery of letter, and you MUST state your intentions clearly.

Ive done this, its legal.

If they dont remove, the goods are yours.

I will say though to check the timescale as it may have changed now to 28 days.

Also, if you send them a scale of charges for future correspondence, you can charge them for letters, as long as they need a reply to anything they send you.

TheEditor_2

Hi Brassneck,

Any ideas where a version of that letter can be found, that's exactly the situation I'm in now, 2 cars, 2 HP agreements, 1 bankruptcy and 1 driveway!

Many thanks for any further info,

TheEd.

Brassneck

TheEditor wrote: »

Hi Brassneck,

Any ideas where a version of that letter can be found, that's exactly the situation I'm in now, 2 cars, 2 HP agreements, 1 bankruptcy and 1 driveway!

Many thanks for any further info,

TheEd.

Erm.yes, ive written the important bits for you....lol.

Firstly *generally* HP agreements have 2 get out clauses: First one is the "halfway" mark, meaning if you have paid HALF of the agreement figure you can legally cancel the agreement and ask for the car to be taken back. Companies dont like it, but its there as per the Credit Consumer Act. And there are NO adverse effects to this, its a legal cancellation. The figure you need to look at is written on the back of your HP agreement.
The second way is the 2/3rds clause: if you have paid 2/3rds of the agreement amount, the company cannot take the vehicle back without a court order. However they can chase you for any shortfall after the vehicle has been sold, usually at auction.

Ive used both these in the past. First one is easy, you phone the company, then inform them in writing.
Second one was a case of just not paying the payments.

As im not sure of your full situation i would look at what is the better option for you.

Incidently, you can also charge for storage if you have given sufficient time for removal and not been obstructive, again as long as you send a letter of charges to company first.

fiveyearplan

Interesting. I'm in a similar position - I have 8 of 60 payments left but haven't paid since June. I can't afford to pay any longer but I was thinking of contacting them and telling them of my intention to go BR and if there was any way we could reduce the payment (its either that or they take the car and live with the shortfall that will obviously be covered in my BR). Now this gives me another option.

On another note, what if they do take the car, is there any way of finding out where they auction it? That may be one way of getting the car back. I owe £2,000, its worth £3,000 but probably wouldn't make anything near that at auction.

sarah1975uk

fiveyearplan wrote: »

Interesting. I'm in a similar position - I have 8 of 60 payments left but haven't paid since June. I can't afford to pay any longer but I was thinking of contacting them and telling them of my intention to go BR and if there was any way we could reduce the payment (its either that or they take the car and live with the shortfall that will obviously be covered in my BR). Now this gives me another option.

On another note, what if they do take the car, is there any way of finding out where they auction it? That may be one way of getting the car back. I owe £2,000, its worth £3,000 but probably wouldn't make anything near that at auction.

Perhaps another option to consider is for you to contact them explaining your thought on BR or just inability to continue paying and perhaps offer a family member to offer a full and final settlement that enables you to keep the car. You know and they know that if it goes to auction it will sell considerably less than what it is worth.