Hire Purchase agreement help
Good afternoon. I'm after some advice and guidance please dealing with a hire purchase agreement that has been terminated.
Let me give you some back ground...
Nearly 2 years ago a young lady with a young child who worked for me was made homeless. She couldn't afford to get her own place as she had bad credit history and didn't have any savings. She came up with the idea of securing a static caravan with a hire purchase agreement so that she would have a roof over her head and a permanent place to call home for her family.
I thought she needed me to be the guarantor which I agreed to do.
It turned out that I wasn't the guarantor, the whole agreement was in my name. The lady in question however made the necessary payments from her account and everything was going fine until she missed a payment. Then another payment, and another and another!
I received a default notice and I had the young lady ring the finance company to arrange a payment plan to pay off the arrears to date. She started to make these payments but a few months later agsin she missed payments, again I received default notices. By this point my credit score had plummeted.
Two weeks ago she was over £3500 In arrears and the finance company wrote to me telling me they had decided to cancel the agreement and I needed to return the keys. They have now repossessed the caravan and changed the locks.
They intend to sell the caravan and I will need to then repay any outstanding balance on the agreement. The total outstanding is over £45,000.
I know I was incredibly stupid to get into this situation in the first place but I was just trying to do the right thing.
I work full time, live on my own and have maybe £70 left at the end of every month after all my living expenses. there is no way on God's green earth I will ever be able to repay that loan, and im afraid the girl in question is going to cut and run leaving me with the debt as it's my name on the agreement.
Is it possible to transfer the debt to her as she was the one living there?
Is it fair to expect me to repay a loan I will never be able to afford to, and for no return. I don't get to keep the caravan , yet I'm expected to repay 100% of the original agreement.
I'm so stressed out over all this it's making me ill.
Does anyone have any advice or know of any services I could use to force this girl to pay the debt, get it transferred to her name, or make her pay a fixed sum every month to me that I could then use to pay off the debt conpany?
On a side note the girl works and earns a good wage and has the option to move home with her parents to save money, but is refusing to because of her boyfriend, whom her parents won't let live there!
Help please.
Thank you,
David.
Let me give you some back ground...
Nearly 2 years ago a young lady with a young child who worked for me was made homeless. She couldn't afford to get her own place as she had bad credit history and didn't have any savings. She came up with the idea of securing a static caravan with a hire purchase agreement so that she would have a roof over her head and a permanent place to call home for her family.
I thought she needed me to be the guarantor which I agreed to do.
It turned out that I wasn't the guarantor, the whole agreement was in my name. The lady in question however made the necessary payments from her account and everything was going fine until she missed a payment. Then another payment, and another and another!
I received a default notice and I had the young lady ring the finance company to arrange a payment plan to pay off the arrears to date. She started to make these payments but a few months later agsin she missed payments, again I received default notices. By this point my credit score had plummeted.
Two weeks ago she was over £3500 In arrears and the finance company wrote to me telling me they had decided to cancel the agreement and I needed to return the keys. They have now repossessed the caravan and changed the locks.
They intend to sell the caravan and I will need to then repay any outstanding balance on the agreement. The total outstanding is over £45,000.
I know I was incredibly stupid to get into this situation in the first place but I was just trying to do the right thing.
I work full time, live on my own and have maybe £70 left at the end of every month after all my living expenses. there is no way on God's green earth I will ever be able to repay that loan, and im afraid the girl in question is going to cut and run leaving me with the debt as it's my name on the agreement.
Is it possible to transfer the debt to her as she was the one living there?
Is it fair to expect me to repay a loan I will never be able to afford to, and for no return. I don't get to keep the caravan , yet I'm expected to repay 100% of the original agreement.
I'm so stressed out over all this it's making me ill.
Does anyone have any advice or know of any services I could use to force this girl to pay the debt, get it transferred to her name, or make her pay a fixed sum every month to me that I could then use to pay off the debt conpany?
On a side note the girl works and earns a good wage and has the option to move home with her parents to save money, but is refusing to because of her boyfriend, whom her parents won't let live there!
Help please.
Thank you,
David.
0
Comments
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Alarm bells should have rung 2 years ago. The reason why the majority have bad credit is simply because they don't pay their debts. You have been taken for a mug and there is likely little you can do about it. Your only option would be taking her through the courts but without any proof of an agreement between you I doubt you would get far.0
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No. It's your debt, not hers.
You won't pay 100% of the agreement though - any residual value from them selling the caravan will go to reducing the debt.0 -
Cant see the finance firm transfering the debt to her, how do they know your not trying to shift the debt, get out of paying etc, yes I know that's not what your trying to do as you helped her out.
Should have given her the number for council housing or similar number.0 -
What evidence do you have of what you believed you were agreeing to? If you have letters, emails or texts I'd be reporting it as having been a victim of fraud.Officially in a clique of idiots0
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OP youve been done up like a kipper.
I dont think there is much you can do to be honest, being a guarantor is basically the same as if you were the person taking out the loan/hire purchase agreement.0 -
dealer_wins wrote: »I dont think there is much you can do to be honest, being a guarantor is basically the same as if you were the person taking out the loan/hire purchase agreement.
Correct. Legally, your liability for the debt is exactly the same. You now have £45k non-priority debt and £70 per month surplus income to service it.
That's the sort of situation we see routinely on the debt-free wannabee board and I suggest you nip over there and start a new thread when you receive the final bill.
We can have a discussion there about any savings, assets and other debts you have and run you through the different options for dealing with it.0 -
Look on the bright side it could have been much much worse. It could have been something like an Amigo Loan with a high APR.0
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The total outstanding is over £45,000.
I know I was incredibly stupid to get into this situation in the first place but I was just trying to do the right thing.
Is it possible to transfer the debt to her as she was the one living there?
Is it fair to expect me to repay a loan I will never be able to afford to, and for no return. I don't get to keep the caravan , yet I'm expected to repay 100% of the original agreement.
I'm so stressed out over all this it's making me ill.
Does anyone have any advice or know of any services I could use to force this girl to pay the debt, get it transferred to her name, or make her pay a fixed sum every month to me that I could then use to pay off the debt company?
David.
Problem is David, the agreement is in your name, in the eyes of the law, it is your debt, not hers, it is incredibly difficult to prove fraud in circumstances such as these, you would, most likely, have to engage council to represent you, costs would escalate, with no guarantee of anything.
As hard as it is to swallow, your best bet is to take Fatbelly`s advice, post a Statement of affairs in DFW and we will see what options are open to you, there will be a way to deal with it.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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