Mike's mum v The Funding Corporation

[moggieb]

Had never heard of these people until I accidently found out about my sons debt problems. Up until a few weeks ago he was on a DMP with Hamilton Locke which was sorted out by his now ex partner. As he was in arrears with his mortgage,he has cancelled his DD with HL and we are going it alone for the time being (with the most excellent support & encouragement from this site I might add). His largest unsecured creditor are these 'people'. It is for a car bought in Mar.06 and handed back in Oct 06. The cost of the car was £5800 but with the 'obligatory' PPI and interest it amounts to a whopping £20,700 payable over five years. He is currently paying £110/month (negotiated by HL) but the full payment should be £335 for something he no longer has. Can they really make him pay all this money? I want to help him sort this & have no problems with him paying a proprtionate amount but what is our first step?

[tiglet]

I would say the first step would be to request a copy of his CCA to see what exactly it says about the PPI. It is possible he has been mis-sold it.

[lynseymc]

Hi Mikes Mum

 

I am having a similar issue with the hideous company. Slightly different i took out an unsecured loan in 2005 and was told that that the PPI was a condition of the loan. I am in the process of claiming this back with the help of this website. The company will try and bully you in to submission but stick to your guns and keep fighting. I have had several letters ignored by them and the staff are so rude. I have 1k left on my account which I am refusing to pay until this PPI + interest is removed which will be more that the 1k outstanding balance. I am now being contacted by some company called ACI who are threatening me with court action which i hope they do and we can get this sorted once and for all. Keep trying don't let these cowboys win!!

[moggieb]

Hello,lynseymc,

 

Mis-sold PPI is also on our agenda as it was strongly indicated that along with GAP insurance and Motor Warranty this was a condition of the loan. The car was collected in Oct.06 and most likely auctioned but he's never been notified whether the amount it went for has been deducted from his debt:(, so have sent an S.A.R. this week to find out what's what.

[moggieb]

Have received a reply to our S.A.R from the Funding Corporation. Its horrendous. Statement has an opening balance of £5837 which was the cost of the car-at its highest it reached £20688. Debits include interest, option fee,admin fee, PPI (or RPI as they call it), Warranty & GAP insurance. There are a few late payment charges too. However, the car was surrendered in Oct 06 ('bought' in Mar.06), was sold at auction & account was credited with £2,297:(. They seem to have written off a number of amounts which looked great. The statement balance at 31st Oct06 was £7219-not too bad. Till I turned the page & saw on the same date 'Transfer Write-Off Rebate' of £8769 taking the debt back up to about 16 grand. Does anyone understand what on earth they are doing?