HP car written off - no insurance

[Debtspiral]

Dumb I know. I was changing to a German insurer and there was a lapse of 3 days during which time I decided to plow off the autobahn.

 

3 days!

 

To make it worse I have written it off in Germany where I now live.

 

I pay HP to Welcome Finance and have paid approx 40% of the total value.

 

What happens now? Does it need declared? It is being stored in my personal garage.

 

What happens if I default on the payments - obviously the car cant be repossesed.

 

Can they pursue me in Germany?

 

Is defaulting on hp purchase a criminal offence or treated as unsecured finance like credit cards?

 

I also have a loan with Welcome and both car and loan together are raping me financially! :-|

[ScarletPimpernel]

The car could be repossessed (but see below about the term of the agreement) - but you would be liable for any shortfall in its value.

 

It's not unknown for companies to pursue in Germany, particularly if the debtor is a member of the UK armed forces based there, and if the amount is high enough to make it worth their while.

 

Defaulting on an hp agreement is not a criminal offence. The finance is effectively secured on the car - the finance company own it until all the payments are made.

 

It would be helpful to know how long the hp agreement is for, and how many payments you have made. Cars can only be repossessed with a court order in some circumstances.

 

Are you in Germany with the armed forces? If so, there is some other stuff that may apply in this situation.

[Debtspiral]

See private messages

[ScarletPimpernel]

Pm seen. CAG prefers that advice is only given on the forum rather than pm. As a one-off, I have replied to you regarding a specific aspect of the case because it is unlikely to affect or be of particular interest to others.

 

I'll get back to you here on the thread about the hp issues; no doubt others will also help with this.

[ScarletPimpernel]

If you have paid back more than one-third of what is owed under the hp agreement (not including insurance), the car can only be repossessed with a court order.

 

If you are struggling to meet the payments, consider cancelling the PPI - but check the PPI forum to see if it was mis-sold (I suspect this may be the case). You could ask the finance company if they'll accept reduced payments, but don't be surprised if they won't play.

[Debtspiral]

OK

 

I have checked my paperwork and it states that once £3100 has been paid of the total sum then the vehicle cannot be repossesed.

 

I have paid (by my calculation) 3900.

 

No vehicles were involved in the accident and no damages have been caused to any land / road etc. No police or civilians were involved.

 

No report was made. I was alone and am without injury. In truth it was a very small shunt but the car being lightweight sports model has crumpled considerably at the front (however it still runs).

 

The vehicle has not been licensed for export merely declared SORN in the UK (which I honestly thought was the procedure for vehicles taken to the continent).

 

I can pay the vehicle off before I have to return from Germany so as far as I can see....

 

I can pay it off normally and then once the vehicle is mine take it to a German scrap dealer?

 

It is currently off road and out of sight causing no obstruction.

 

Given previous PM does this sound feasible?

[Debtspiral]

Howwever I have tried several times within the last year to cancel the PPI and I keep being told the paperwork was never recieved and my phone calls are never returned!

 

It was definetely missold. I was told I needed ther GAP insurance and the warranty - it was necassary for the car.

[ScarletPimpernel]

There are two issues here - the registration, and the finance.

 

I am doing some research into the registration issue (I know someone who took a non-running classic car to Germany), and will report any progress.

 

If you are happy to keep paying for it, you could just hang on to it. A German scrapyard will need a registration document, but you still have that - you'll just need to inform the DVLA in the usual way.

 

Once you've paid off 50% of the finance, you could go for voluntary termination - but it would be difficult in practical terms to hand it back to the finance company, and you would be liable for any shortfall due to the damage.

 

With the PPI, a cancellation letter sent recorded or special delivery should do the trick, but you would be best off asking about the PPI on the PPI forum, where there are people far more knowledgeable than I on that subject.

[Debtspiral]

Thanks for everything

[robuck]

..

[Debtspiral]

I have decided to fix the car up and hand it back to the Finance Company.

 

If I do this do I only need to clear my arrears and pay up to 50% of the value?