Hi, I'm hoping someone can advise me on a huge problem I have. Sorry this is long!
Background is bought car Vauxhal astra estate from Yes Car Credit / Direct Auto Finance about 5 years ago - quite expensive for what it was. I had no credit rating so this seemed to be the best offer my partner and I could get.
We did sign the
PPI
- as we were told it was a good idea to protect payments but no other advice was given to us.
3 years later - payments crippling £270 monthly on top of expensive car to fuel and Yes Car Credit agreed we could trade it for something cheaper. They then stopped trading and Direct Auto Finance advised us this was no longer an option.
After speaking to a few other car finance companies including DAF we decided our best option would be to voluntary surrender the car back to Direct Auto Finance (DAF) as we had then paid off more that a 3rd of the balance. DAF were happy with this and we had many conversations in which we have names, dates, etc of who we spoke to. They kept telling us that we would not owe any further balance AT ALL and we did ask about the PP insurance at the time.
So car given up, new car got from another company and all seemed well.
Nearly a year later we started to get letters from a debt collecting agency on behalf of DAF stating there was an outstanding balance for approx £1.7K. We queried this and although it took many months finally managed to get the details which showed it was for unpaid PPI. we were told by this company that although we surrended the car we would not have been able to cancel the insurance and that it was still owing. We have tried and failed to speak to DAF themselves and have now been told by this company that DAF ceased to trade in Dec 07 (Is this true?).
Its hit and miss with this debt recovery agency with
phone calls made and received - most are really unpleasant and threatening - but occasionally we get to speak to someone decent who at least tries to help and provide details. We have just been told all our conversations were recorded even though we never knew this or gave permission - this would be interesting to get taped copies as some of the nasty calls we got are very revealing about the tactics of this company.
So basically we are stuck, because DAF have gone we can't prove we don't owe the money although on one document we received it said vehicle repossessed which is totally untrue - we have another document which contradicts this as well so we can show we are telling the truth. but as for the PPI balance what can we do? After being told we didn't owe anything this influenced us to surrender it.
We had other choices at the time - 1 was to struggle on and keep paying as we owed only about £3k at the time - or 2 - the new finance we got with another company had offered to pay the remaining debt and take our car as a trade and put remaining difference on our current finance agreement so we weren't out of options totally.
Any advise would be really gratefully received as we are going nowhere with this and it is really stressing us out. Thanks
Direct Auto Finance PPI debt issue
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Originally Posted by Ms-Pacman
If they do not then, what they are after by law they cannot chase you. You by law have right, but first we need to know if they can enforce it.
