Car finance chasing for arrears from 5 yrs ago.

[claire1976]

I had my car stolen 5 yrs ago and claimed on the insurance, I also had gap insurance to cover the difference. Since 5 yrs have passed I haven't got any paper work or details of who the gap insurance was with. I just remember that it was sorted out. Now suddenly 5 yrs later the car finance people are claiming I still owe them £3500, they have no details of gap cover and are threatening legal action?!!!
I have no paperwork to support my claim and can't understand why its taken them so long to contact me about it.
I have no assets to my name as I've been undergoing cancer treatment for last 4 yrs, I only work p/t so can't afford to pay this back.
Is there a time limit on companies claiming for money?
What can I do, I'm so worried.

[KJD]

Not sure how I can help, but to help you find details of the gap insurance, have you got any statements (bank ones - I'm assuming you paid it by direct debit) from around that time. That would at least give you the company name and a reference number. Might be a place to start?

[claire1976]

Finance company just told me that Gap did pay out but there was a shortfall of £195. It took them 2 years to tell me about this by which time I had moved address, 4 years later they've found me and because I haven't paid the shortfall they've cancelled the original rebate from when the insurance paid out. This means that they added this back to my account plus fees and interest meaning that £195 has increased to £3500. There's no way I can pay this, I'm seriously ill with cancer and struggle to live as it is. They'll have to take me to court unfortunately.

[powelll]

Have you acknowledged this debt in writing since they contacted you? If not, and if you haven't made any payment it may be worth checking out EXACTLY how long this has been outstanding for ( from the sounds of it would be from the date the shortfall occurred ). If it's coming up to 6 yrs you may want to hold your nerve then argue statute of limitations. I'm not absolutely positive whether this would apply for your exact situation but maybe someone else can!!

[sequenci]

Originally Posted by claire1976

Finance company just told me that Gap did pay out but there was a shortfall of £195. It took them 2 years to tell me about this by which time I had moved address, 4 years later they've found me and because I haven't paid the shortfall they've cancelled the original rebate from when the insurance paid out. This means that they added this back to my account plus fees and interest meaning that £195 has increased to £3500. There's no way I can pay this, I'm seriously ill with cancer and struggle to live as it is. They'll have to take me to court unfortunately.

i would challenge these charges in the same way one would challenge bank penalty charges. start by sending them a S.A.R - (Subject Access Request). remember not to admit liability at this stage.

i'm no expert on insurance but this sort of behaviour really warrants the complaints avenues investigated.

sorry to hear of your condition, i hope this doesn't get in the way of the road to recovery.

[claire1976]

Originally Posted by powelll

Have you acknowledged this debt in writing since they contacted you? If not, and if you haven't made any payment it may be worth checking out EXACTLY how long this has been outstanding for ( from the sounds of it would be from the date the shortfall occurred ). If it's coming up to 6 yrs you may want to hold your nerve then argue statute of limitations. I'm not absolutely positive whether this would apply for your exact situation but maybe someone else can!!

Unfortunately it is less than 6 years so I can't argue on that score.

[claire1976]

Originally Posted by sequenci

i would challenge these charges in the same way one would challenge bank penalty charges. start by sending them a S.A.R - (Subject Access Request). remember not to admit liability at this stage.

i'm no expert on insurance but this sort of behaviour really warrants the complaints avenues investigated.

sorry to hear of your condition, i hope this doesn't get in the way of the road to recovery.

I'm definitely penning a complaint as we speak, I'm unsure how to approach it to be honest. when I claimed back bank charges it wasn't too difficult as there was no threat looming over me. At the moment the finance company are planning on taking me to court as they say they can justify the amount due.

[sequenci]

Originally Posted by claire1976

I'm definitely penning a complaint as we speak, I'm unsure how to approach it to be honest. when I claimed back bank charges it wasn't too difficult as there was no threat looming over me. At the moment the finance company are planning on taking me to court as they say they can justify the amount due.

In the eyes of what is reasonable, how would a debt of £195 grow to one of £3500 in 4 years?

I think you would have a VERY, VERY good ground for a defence.

Can you answer any of these questions for me?

1) How much was the original agreement for?
2) What was the original rate of interest

If the original loan was regulated by the Consumer Credit Act you should consider sending a CCA request and forcing the debt into dispute.

[claire1976]

From what I can gather when the insurance company paid out the finance company included a rebate for early settlement during the financed period. Because I failed to pay the shortfall that was left between the ins company and gap insurance they say they are entitled to reclaim this rebate and have therefore added this plus costs back to my account.
I have no paperwork anymore as it was so long ago and I thought it was settled I haven't got anything to work on .
What is a CCA request?

[sequenci]

a CCA request is a request for your agreement + statement of account under the Consumer Credit Act, more info here: http://www.consumeractiongroup.co.uk...agreement.html

How much did you borrow originally [approx]?

[claire1976]

I think it was £8500, Insurance paid out £6500, gap £1046, I'd made about 3/4 payments before the car was stolen, shortfall was £195.

[sequenci]

Originally Posted by claire1976

I think it was £8500, Insurance paid out £6500, gap £1046, I'd made about 3/4 payments before the car was stolen, shortfall was £195.

The agreement would have been regulated by the consumer credit act.

A CCA request will allow you to send £1 and get a copy of the aformentioned info. This should be your next step.

remember that if they cannot furnish you with all the info, the debt will be UNENFORCEABLE.

[claire1976]

Ok, I will give that a go but I'm not sure that it's going to help.

[sequenci]

Originally Posted by claire1976

Ok, I will give that a go but I'm not sure that it's going to help.

you need to read more around the forum! it is clearly evident this firm is taking you for a ride.

[claire1976]

Yeah, just been doing that! Its really hard to be objective when you are being intimidated. This is not a small amount of money and they are pushing ahead with their legal action. I've done my letter and asked for a copy of the CCA so we'll see what happens. Thanks for advice!

[sequenci]

Originally Posted by claire1976

Yeah, just been doing that! Its really hard to be objective when you are being intimidated. This is not a small amount of money and they are pushing ahead with their legal action. I've done my letter and asked for a copy of the CCA so we'll see what happens. Thanks for advice!

i can appreciate that the threat of legal action might appear scary but they need ot prove that this amount of money is due. £195 growing to £3,500 in five years doesn't add up and i'm sure a judge would agree. you have a right to a statement, it will be interesting to see what it says!