Motor finance

Mrtwisty · 17 March 2017 at 11:05PM

I may have been a bit stupid. I bought a new motorbike with finance from Close Brothers Motor Finance last July. It was written off in December after a lovely young lady drove into it whilst it was going round a roundabout with me on board. Anyway, got the money from the insurance, bike's nearly rebuilt and Close Brothers have been in touch today to say that they should have had the money and not me.

I relied on the insurance company to know what to do regarding this and am a bit stunned that Close Brothers now want to call in the loan; £1512.29.

Now to the really stupid bit. I don't have a copy of the Close Brothers terms and conditions, and I don't think one was ever provided to me by the dealer I bought from. Does anyone out there have a copy that they can scan and send over to me? I want to know where I actually stand here.

[Deleted User] · 17 March 2017 at 11:29PM

Aren't the T&Cs available online? just a thought.

bazzyb · 17 March 2017 at 11:53PM

Close Brothers will be able to send you a copy of your signed agreement. The agreement will almost certainly be hire purchase, which means the bike was owned by them rather than you. The insurance company should have done an HPI check, but regardless of that it sounds right that the payout should have gone to them to clear the outstanding finance.

Mrtwisty · 18 March 2017 at 12:07AM

Tried that and can't find them anywhere! Thanks, though.

Mrtwisty · 18 March 2017 at 12:24AM

That's one of the issues. The insurance company did do an HPI check, and I informed them that the bike was on finance and even who the finance was with. They even have that info on paperwork they sent me. That's why I'm struggling to see what went wrong between the insurance company and the finance company!

Nearlyold · 18 March 2017 at 12:43PM

Was the bike written off or did the insurance agree to pay for repairs? Who is repairing the bike? Have you kept up the payments on the finance? If it was written off did you tell Close Brothers?

MEM62 · 20 March 2017 at 11:39AM

If the bike was repairable then usually the bike would have been repaired and the cost of the repairs settled directly by the underwriters. As the money was sent to you it suggests that the bike may have been written off. Was it? If so then settlement should have been sent directly to the finance company.

Mrtwisty · 21 March 2017 at 8:51AM

It was a write off. Cat C. I have now rebuilt it and returned it to the road, using all of the insurance money...

Nearlyold · 21 March 2017 at 9:07AM

It sounds as if you didn't let Close Brothers know it was written off and now they have found out and have called in the loan? What explanation was in the Close Brothers letter? It will be a standard term that if the bike was written off the loan would be repayable immediately (because the lender would no longer have the security in the bike). Best bet is to talk to Close and see if they will negotiate something.

MEM62 · 21 March 2017 at 12:08PM

Mrtwisty wrote: »

It was a write off. Cat C. I have now rebuilt it and returned it to the road, using all of the insurance money...

There lies your problem. The money was not yours - it should have been passed to the finance company as their bike was written off. As advised by Nearlyold, you will now need to contact them and see what you can negotiate.

DCFC79 · 23 March 2017 at 5:58PM

Any news OP ?

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