Suffered strokes last Christmas 2016 Need Advice about Car Finance

farquarpigmix
farquarpigmix Posts: 274 Forumite
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in Debt-free wannabe
I am writing this for a friend who has suffered 3 strokes since last Christmas & nearly died twice.
She has a car on finance & explained to finance company due to strokes unable to work etc. They aren't being very helpful. As you can understand she is ill with the worry being unable to pay repayments. In fact she hasn't no income.

Can anyone offer her any help any advice please?

Comments

  • sourcrates
    sourcrates Posts: 28,876 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Hi,

    Sorry to hear about your freind.

    If the customer stops paying, usually the car will be repossessed.

    Your friend would be liable for any shortfall once the car had been sold, if the sale price didn't cover the outstanding balance.
    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-letter
  • midnight_express
    midnight_express Posts: 1,272 Forumite
    She should find out if she is entitled to any benefits.
  • farquarpigmix
    farquarpigmix Posts: 274 Forumite
    First Anniversary Combo Breaker
    Shes spoken to the finance company about her situation. They are saying yes we will take car of you & you still have £5,000 to pay. Where they got this figure I don't know.

    Shes now speaking to Insurance company to explain why she can't pay them & others etc.
    She also tried to contact CAB but they are very busy.
  • farquarpigmix
    farquarpigmix Posts: 274 Forumite
    First Anniversary Combo Breaker
    She has just been PIP assessed. So waiting for a decision.
  • sourcrates
    sourcrates Posts: 28,876 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    It's always stressful dealing with such matters when your ill.

    Everything should really be done in writing, that way you get straight to the right dept, and there is no need to speak to anyone.

    If she can't afford the car, she needs to accept this will have to go, debt collection takes a very long time, nothing happens quickly, she can easily put things on hold for a year or so, then deal with things when, hopefully, the health improves.

    A letter detailing the health problems to each of her creditors would not go a miss.
    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-letter
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Hi there

    I’m sorry to hear about your friend’s health issues, dealing with debts on top can be very stressful. You mention car finance, is that a hire purchase (HP) agreement? It’s very important to check as it affects the rights she has. Also does your friend want to attempt to keep the car?

    Assuming the car is on HP your friend has the right to terminate the agreement. She will be held liable for 50% of the original agreement minus any payments already made. If the creditor terminates the agreement they will hold your friend liable for 100% of the original agreement minus payments already made and the amount they get for selling the car at auction.

    If your friend decides to terminate the agreement herself she must do it in writing, sending the letter by recorded delivery and taking photographs of the condition of the car before it is returned (she can be held liable for any damage). You will find more information on this, including a sample letter, here https://www.nationaldebtline.org/EW/factsheets/Pages/hire-purchase-debt/hire-purchase-and-conditional-sale.aspx.


    You can also contact the free debt advice agencies to look at ways she may be able to attempt to keep the car and deal with any debt she may be left with if the car goes back. Hope this helps.

    Susie
    @natdebtline

    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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