Mallard Finance - Repossession

[Chris_gy]

I took out a vehicle on finance 4 months ago, and lost my job approx 2 months ago. I borrowed a total of £1995 for the car prior. The repayment on the vehicle was £93 over 36 months including unwanted protection cover and explained to them my situation about been unemployed. Unfortunaltey I was unable to claim due to circumstances .Well anyway last month they came along and took the car away, I was only £217 in arrears and that of the equivalent of 2.25 months. I recieved a letter this morning to say the net value of the vehicle had sold for £870, and the remaining due was £3513 to include the interest over 36 months. So total owed after reduction due to sale meant I owe them £2978. They said if I paid by full within 14 days which will not happen that they will allow £2750 as a final settlement, but if not then the monthly payment will be £114 over 36 months at 12% on top of the original???? Totalling over £4000!! Can they actually put interest on top of interest?? And how can they expect the payment to be higher than that of what it is now?? And also can they legally require the whole 36 months interest since they terminated the agreement after only 4 months?? any advice will be greatly appreciated, thank you.

[sequenci]

i'm not sure that can charge interest on interest, however i've heard of some really dodgy contracts in the world of finance.

if this does happen you could apply via the courts for a time order to get the court to reduce the interest and payments.

some good reading for you >>

National Debtline England & Wales | Debt Advice | Factsheet 16 How To Deal With Hire Purchase Debt

National Debtline England & Wales | Debt Advice | Factsheet 06 Time Orders

i hope it helps!

Was this Yes Car?

I would need to see the contract if you want me to look over it I will, do you have excess to a Fax?

I was going to do you a letter but it is late and I will do it over the next few days. Long story short you do owe the £2978 but the 12% is bollocks and we'll show them the errors of their ways.


Consumer Credit Act

93 Interest not to be increased on default

The debtor under a regulated consumer credit agreement shall not be obliged to pay interest on sums which, in breach of the agreement, are unpaid by him at a rate—

(a) where the total charge for credit includes an item in respect of interest, exceeding the rate of that interest, or

(b) in any other case, exceeding what would be the rate of the total charge for credit if any items included in the total charge for credit by virtue of section 20(2) were disregarded.