Car repossesion

[louis wu]

Hello all.

In order for a car to be repossesed, less than 1/3 of the amount borrowed needs to have been paid back to the finance company. Usually before repossesion a series of fines/charges (as in the same as bank charges) will have been levied at the customer. If the amount paid back is over 1/3 they cannot reposses your car.

The point I am trying to make is this.

It is now accepted that bank charges are unlawfull/illegal (I am in dispute with Abbey and my claim is progressing). Would similar charges be considered the same if they came from a finance company offering HP. It appears to me that they would be one and the same thing.

If this is the case, and these charges had been collected, then the actual amount paid to the finance company would be more than originally calculated(every £30 charge would in effect be an extra £30 of the loan rather than a charge)

So take this example.
finance £300
amount repayed £75
1 "late charge" £30
Car repossed due to £75 being less than 1/3 loan value.
In fact £105 paid totaling more than 1/3.

Could a repossesion under these circumstances be challenged?

My wife had a car repossed 4 years ago when she was about £50 short of the 1/3 target. She did bury her head in the sand, but was suffering from post natal depression and tried to keep it from me. In the end it cost us a fortune as the car was sold at an auction and didn't cover the outstanding loan, in fact took another 2 years to clear the debt.

I am not an expert, and I am sure some major flaw exists in my thinking. I would appreciate any feedback/sugestions, as I am seriously considering challenging the finance company using the Bank templates as a guide and would love to know if this has been tried already.

Cheers folks

[fivelaws]

Interesting thought. It certainly *sounds* plausible. Probably best to start with a Data Protection Act request and take it from there once you find out the scale of the charges?

I had a car repo'd about 7 years ago by BMW finance, which was mostly hilarious because I'd actually told them to come and fetch the keys because the car was damaged before delivery. In all the wrangling, they forgot to tell their repo people there was a dispute and by the time they realised their mistake, they decided to bluff it out and claim £8,500 in charges. Needless to say, I played poker with 'em and after calling their bluff quite literally on the steps to the court, they ended up paying my legal fees and walking away.... Idiots. Needless to say, have no desire to ever own one of their cars again.

Are "Wools" allowed to own cars then? You live and learn eh?...

[gordonhall]

I've not heard of this, but since this site has up and running, it has opened up a whole can of worms in regards to other areas of finance, such as early mortgage repayments etc

I'd say send the Data Protection Act letter, but in the mean time try to get this thread noticed and see if any one can give you otehr legal advice.

Sure is one to watch!

[louis wu]

The Data Protection Act letter will almost certainly be sent, as the worse that can happen is a lost £10.

As for the rest, well only time will tell, but I am sure if there is a way someone here will figure it out.

Cheers guys for your initial thoughts

[louis wu]

Hello all.

I have just started a thread in the 'general consumer issues' regarding car repossesions.

Very briefly, it concerns whether finance company "charges" are in the same catagory as bank charges, and then the relationship between these charges and the 1/3 rule of repossesion.

If you get the chance have a look at it and maybe give me, and I'm sure a few others, some help and advice.

Please do not post any replies here, as it would be nice to keep any posts together.

Cheers

MOD NOTE: Threads merged. Please stick to one thread.