old car finance - debt advice

[craigey1]

Hi,

 

I have a little problem & hope someone may be able to offer advice.

 

A few years ago (sometime in 2000 / 2001), I got a car on finance with my partner through direct car finance / Credit Acceptance. This is one of those companies that sits you in the office all day trying to get as much credit for you as they can & then show you a few cars that you can have in your credit range.

Anyway we ended up with a Citroen Xantia, which was a pile of rubbish. after a few weeks we found the brakes were defective, suspension was knackered & steering wasn't right. We also believed the car to be a cut & shut due to the paint not matching in the door arch.

 

We went back & complained as the car was supposed to have been MOT'd when we got it & obviously it wouldn't pass one with these faults. I believe they had a local garage just write one up. They accepted the car back agreed to terminate the agreement. There was no offer to repair or exchange the vehicle & I probably wouldn't have accepted those choices if they had been given.

 

As far as we were aware this was the end of the issue.

 

However today I recieved a card through the post, with the wording "Message Express Dept" & a phone & Ref number. I stupidly called to find out what it was about & they explained that they were acting on behalf of Credit Acceptance to chase the debt of (almost) £4000. I explained that the car had gone back & why & that I didn't know anything about the debt. They told me that the debt was for the interest as we had voluntarily cancelled the credit agreement, which meant we were still liable to pay.

I have split up from the girl I was with at the time & don't have any contact details for her. I was told by the agency that I would have to pay the full debt as they had been unable to contact her & in order for us to split it we would need a solicitor involved to agree that both of us pay half.

After explaining that the car wasn't fit for purpose & that it was possibly a cut & shut. The woman I spoke to checked through some notes on the account & stated it had mentioned problems with the brakes / steering etc. She reccomended that I write a letter explaining that I dispute the debt.

 

I would very much apreciate it if someone could tell me what I should put in this letter. Any advice on where I may stand legally would also be a great help. I spoke to my step father today & he advised that they may end up writing off the debt as they will not want to go to court as this would look bad on the company who sold the car originally.

 

Please help!

[alfwithhair]

Did you get anything in writing when the agreement was terminated?

 

Also if you have had no contact or made any payment towards this said agreement in the last six years (which would appear to be the case from the dates you have mentioned) the debt if it does actually exist will no doubt be stature barred.

 

I would write to Express Dept informing them off this.

You will find a suitable letter in here;

http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html

[craigey1]

Unfortunately I didn't get anything in writing confirming it was terminated.

 

Is it worth sending a letter of dispute as well as the letter 'M' from the link.

Thanks

 

BTW the company who sent the card was Marlin dca.

[alfwithhair]

Well if nothing in writing terminating the account, I see little point trying to dispute it on the grounds it was terminated with Marlin. I would contact DCF and see what they have to say, If you were misinformed about the terms of the agreement at the time it was terminated, ie not told if there was any penalty clauses for ending it early, you may have some redress with DCF.

 

The best bet I think would be to go with letter M to Marlin on the stature barred basis. Make sure it is six years though since this so called agreement was terminated.

 

Were payments made by direct debit, if so your bank may be able to confirm when last payment was paid to DCF. Marlin are probably on a last ditch attempt to collect before the six years is up. Some DCA's buy these last chance saloon debts for peanuts. The fact that they have said

 

"She reccomended that I write a letter explaining that I dispute the debt."

 

could be exactly as I said six year is almost up, writing to then you have had contact with them.

Make sure you put

I DO NOT ACKNOWLEDGE ANY DEPT TO YOUR COMPANY on all letters and never sign them, just print your name.

[craigey1]

I'm going to see if I can find any paperwork regarding this to see when any payments were last made. I think the payments may have been made by a paying in book (not my idea).

 

The termination was with direct car finance as they agreed to take the car back & said that was it. I believe Credit Acceptance was then trying to chase us up. Eventually they passed this to a debt recovery agent who wrote to me at my mothers address. My step father told them where to go & that they did not know where I was living, (which was true at the time.) I presume they then passed the debt on to Marlin.

 

Is it worth trying to get any of the account details first so that I can ensure it definately has been more then 6 years since they have recieved any form of payment or should I just send the 'M' letter & hope!

 

I will definately take your advice about not signing or the acknowledging.

 

Thanks

[alfwithhair]

I would indeed find out if it has been six years since any contact or payment.

[craigey1]

How can I fnd out when the last payment was made if I don't have the paperwork anymore?

 

Will Marlin give me the account / statement & other relevant information easily?

 

Should I just send Letter 'M' or should I wait & send a letter requesting the details first?

 

What is meant by the term "No Contact"? The reason I ask is that letters have been sent to my parents address previously a few (aprox 4) years ago, but I never saw them. Would that still be construed as contact?

[jesuisunique]

Posts: 1

 

 

Re: re mhat was given because he bought a used car which was never right from the day he bought it. He tooback to the garage over the first 12 month period and in the end told them he wanted to end the contract. The dealership said he would have to contact the HP company which he did and explained the whole story to them. They agreed over the phone to come and collect the car and end the agreement with nothing else to pay. They then (2004) sent him a default he called them to say it should of been dealt with but they would not acknowledge the conversation clearing the debt and collecting the car. This finance company have since closed down and we have now got MARLIN FINANCE on our backs saying that they will take him to court and that they dont know anything about the car being faulty. They traced my husband by posting a message card to us and asking us to call them. He said he is calling back in a week and to get a Solicitor as he is taking him to court for £8,000. We have not got this money and never had the car as it was always in the garage being repaired. We have cover notes to prove that we borrowed another car too. The garage has alos since gone kaput! Please help i am at my wits end especially with Chirstmas around the corner i cannot face someone knowcking ont he door asking for money or taking our things.

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