URGENT: Car Finance / want to avoid Repossession

Lamplighter · 24 December 2017 at 1:20AM

Hi there

Urgent advice needed please - thanks in advance.

I’m 2.5 yrs into a 4 yr vehicle HP agreement with Barclays Partner Finance. I got a couple of payments behind earlier in the year and agreed a repayment plan to catch up over 12 months, which I’ve been progressing. I have already repaid just over 1/3 of the finance value. However, the car is significantly over its agreed annual mileage, and hence my intention would likely be to pay the balloon rather than the mileage penalty at the end of the term.

I was forced to move house in October (I rent, and landlord wanted to sell with vacant possession), which was totally unforeseen and not budgeted. Whilst waiting for the return of the deposit, I wasn’t able to make the November payment.

I called Barclays on a Friday whilst on a business trip to discuss, and they told me the account had defaulted. I told them I could make the missed payment, but asked if I could call back on Monday to arrange as I did not have my papers with me. I was told that was ok and a note would be put on the file to that effect.

I called on the Monday, and a different call handler said the account had been transferred for repossession, as missing the payment on the arranged plan had put me marginally beyond 3 months’ arrears (by about £50). They told me a letter had been sent on Friday. When I protested that I had called on Friday and been told I could call again Monday, and was doing exactly that, they said the call handler on Friday had been mistaken. When I said I could actually clear the entire arrears from the return of my rent deposit, they advised me it was beyond that stage and there is “nothing they can do”. I also said that repossession was surely in neither party’s best interests, given the likely low sale value at auction and my ability to clear the arrears there and then, but I was told the finance agreement no longer existed because of the default, therefore their hands were tied.

I have subsequently received a letter from solicitors on behalf of Barclays (TLT LLP) seeking payment of the full balance or recovery of the vehicle (voluntary surrender or otherwise).

I’ve been given 14 days from date of letter, which has actually given me far less time as it was sent to my old address and was forwarded, and also covers the Christmas period. They advise they are instructed to commence court proceedings without further notice to recover vehicle and outstanding payment.

I received an annual bonus from my employer in my December salary. My situation is that I can clear the arrears in full, and comfortably cover the monthly payment from my income / expenditure going forward. However, if I lose the car, I would face a significant shortfall due to the low value (high mileage) and I would also need to find and pay for an alternative vehicle. I need a car for work, and I have a disabled son. An added complication is that I’m out of the country from next week until mid January.

I’m looking for advice as to how I might prevent the repossession of the vehicle, either with Barclays, the solicitors or the court.

Thanks and Regards
Lamplighter

Merry Christmas!

sourcrates · 24 December 2017 at 1:38AM

Hi,

Once an account defaults, it means the relationship between lender and debtor has broken down irretrievably, and the agreement ends.

We’re you at any time send a default notice ?

This is required under the consumer credit act, and would give you (usually) 14 or 28 days to bring your account back up to date, but it would only be sent once, further breeches would likely trigger recovery action.

Unfortunately this seems to of progressed post haste, and you can never 100% rely on what a call handler tells you, once an account defaults, that’s it, the agreement is over, and the full balance becomes payable.

I’m not sure there’s that much you can do about it now, but I would certainly give National Debtline a call and run it past them, they may be open tomorrow, check their website.

Lamplighter · 24 December 2017 at 1:45AM

Yes, it was the default notice that prompted my call. I am guilty of underestimating the impact of missing one payment whilst already on a repayment plan. Frustratingly, I could readily have paid £100 during the Friday call (had I known) to at least bring the arrears below 3 payments, but was comforted that I was told I could call back on the Monday.

Is the requirement for the lender to seek court approval for the repossession purely procedural? Do I have no opportunity to state my case, settle arrears and resume the original agreement?

Thanks

Lamplighter · 24 December 2017 at 1:50AM

I guess also I cannot see how the lender is better off by executing the repossession and pursuing me for the shortfall, rather than accepting a full arrears repayment and continuing to receive the monthly instalments (whilst still having the vehicle as surety). I had the feeling that the call handler did not have discretionary decision making powers and was following a script.

Or am I doomed on this?

Arleen · 24 December 2017 at 2:23AM

Lamplighter wrote: »

I guess also I cannot see how the lender is better off by executing the repossession and pursuing me for the shortfall, rather than accepting a full arrears repayment and continuing to receive the monthly instalments (whilst still having the vehicle as surety). I had the feeling that the call handler did not have discretionary decision making powers and was following a script.

Or am I doomed on this?

You are very much doomed, they already set your account as one to abandon and accept the loss on.
The problem with giving you another chance is that, well, they did that once already and you didn't keep it. Every time this happens, this starts an expensive process for them, and eventually, they just have to take the "loss" on your account (given that you will owe the shortfall and they can sell the car on finance again there may well not be any loss for them) and focus on other customers. It's brutal, but that's how it is, and any time longer they give you, the higher the loss is for them as car depreciates further.

Fireflyaway · 24 December 2017 at 9:21AM

Do you have any savings and do you have money left over each month after bills? I'd be tempted to drawn a line under this. Let them take the car and pay off what you need to to get rid of it ( under a payment plan if you can't pay it in one hit). Then buy a cheap run around with cash. My car is probably only worth £400 ( had it 8 years now) if I were to try to sell it but its perfectly respectable looking and drives really nicely. If in the future you want to upgrade then save a bit each month and buy with cash. Car finance is a rip off and stressful! I remember before my car was paid I got into financial problems. I couldn't sleep thinking every noise at night was the company coming to tow it away!
I would contact the solicitors and talk it through. Being cooperative will work in your favour. They might be able to come to a better arrangement than just letting things take thier course.

Lamplighter · 24 December 2017 at 10:46AM

Thanks both
Acceptance of the situation is where I am mentally, it just pains me that there will be a substantial deficit from the auction sale, and financially I can afford to recover the situation having received both return of house deposit and annual bonus from employer. This is why I wanted to check whether the situation can be recovered in any way at this late stage.
I appreciate your time to respond. Thank you!

-taff · 24 December 2017 at 11:46AM

You could try arranging a loan to pay it off in full, it's probably the only way to keep the car, but as above, you may be better off with a car you own outright.

stevenhp1987 · 24 December 2017 at 11:58AM

-taff wrote: »

You could try arranging a loan to pay it off in full, it's probably the only way to keep the car, but as above, you may be better off with a car you own outright.

The op has defaulted on the car finance agreement which will make it difficult to get a loan.

If they are, it would be an extortionate APR.

Op, you are probably better off Voluntary Terminating (note, this is different and preferable to a Voluntary Surrender) than going through the repossession process.

You only pay 50% of the total amount to pay (including deposit). Vehicle sales don't count here though. How much have you paid, how much was your deposit? How much is the total to pay / total loan etc.

http://legalbeagles.info/forums/showthread.php?77612-A-guide-to-voluntary-termination-Your-rights

Lungboy · 24 December 2017 at 12:04PM

Lamplighter wrote: »

I was forced to move house in October (I rent, and landlord wanted to sell with vacant possession)

That was likely the landlord's problem, not yours, but it's too late now.

nelly12 · 24 December 2017 at 5:12PM

Unfortunately the right to VT on an HP agreement is lost once the OP fell into arrears.

stevenhp1987 wrote: »

The op has defaulted on the car finance agreement which will make it difficult to get a loan.

If they are, it would be an extortionate APR.

Op, you are probably better off Voluntary Terminating (note, this is different and preferable to a Voluntary Surrender) than going through the repossession process.

You only pay 50% of the total amount to pay (including deposit). Vehicle sales don't count here though. How much have you paid, how much was your deposit? How much is the total to pay / total loan etc.

http://legalbeagles.info/forums/showthread.php?77612-A-guide-to-voluntary-termination-Your-rights

URGENT: Car Finance / want to avoid Repossession

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