Car Loan Short Settlement, Help??

VADER2007

Hi, can anyone give me advice on the following situation?

I owed my car finance company £15000 for a car I could not meet the monthly payments for. They agreed for me to sell the car privately for £11500 and to send them the money, which they accepted as “Short Settlement”. Following this they released the title to the new owner.

I have made a verbal agreement to pay the remaining £2500 over the next 12 months, my question is what would happen if I refused to pay the remaining amount?

As they have released the title and there is no written contract between us what course of action could they take? One further piece of information they have asked that I pay by card each month as there is no contract they cant set up a direct debit.

jonesMUFCforever

Write to the head office of the lender explaining this.
It could be someone pulling a fast one making a profit at your expense.

It could also be of course totally legit and somewhere in your paperwork (in the T&C) there would be something explaining this.
I don't know why they can't set up a direct debit though?

To answer your question if you don't repay the O/S debt your credit files will be trashed and ultimately a CCJ will be obtained against you.

VADER2007

Thanks, but if the origional contract is settled the T&C would not apply and there is no new contract the repayment plan has only been discussed on the phone.

The new owner has done a HPI check and the vehicle has no finance outstanding and the title has been released from the finance company.