Car finance (Repossession)

[nathal]

I am in a somewhat similar position and my personalised reg was sold with the car. here http://www.consumeractiongroup.co.uk/forum/general-consumer-issues/39899-hostile-termination-hp-agreement.html

 

In my opinion you should write telling them you dispute the balance, requesting all docs, from acc agreement, acc statement detailing starting balance, payments made, charges, final balance, copy docs from the auction house, and if it was sold with v5.

 

when you have a the information you need in front of you, you can proceed with your dispute into the sale price and the issue regarding your reg.

 

did they fail to gain full market resale for the reg, also they had been informed of the removal of the reg, they never informed you of the venue or time of sale.

additionally, you were not allowed the chance to transfer the agreemnt after numerous requests.

 

you had informed them that you had payment diffuculties, and they failed to compromise.

 

the reasoning behind the balance is

 

ammount they would have received if the agreemnt had been fulfilled minus the sale price of vehicle.

 

when writing to the hp company, direct your letters to compliance and inform them the account is in dispute

 

if you do not pay or make an arrangement they are likely to apply to the court for judgement and that will impair your credit.

[buzby]

What's the next step for me now, then? Get in touch with them and ask for a breakdown and a re-calculation?

 

Yes - explain that your having difficulty in reconciling their various charges and ask for a breakdown to enable you to ensure any charges made are fair and reasonable - that's usually worth an instant discount for a start!

[nathal]

You will normally be liable to pay back the balance between the amount owed and the auction value of the car. ***** may have a fiduciary duty to obtain a reasonable price for the car i.e. normal selling price at the auction. Anything considerably less than the bottom price indicated on the glass's guide would possible give you grounds for referring the matter to the financial ombudsman service.

 

here is the response from fsa regarding hp company selling a car at auction without having a reserve price

 

 

check out glass's used car prices on here

PT-NoCookies

[nathal]

additionally another price comparison site, for free

Parker's

[buzby]

As has already been pointed out earlier in this thread, Glass & Parkers guide are simply that, a guide. There is no responsibility, either implited or attached to the resale price of a vehicle asd what a 'typical' version of it as shown on these guides. At auction, the seller (finance house) has discharged their fiduciary responsibilities by having the vehicle sold at publiic auction - and the price obtained for most vehicles is less than any of the guides. Add to the fact ALL cars there are sold 'as seen' this deflates the value even further. Always try to dispose of your vehicle via a dealer, rather than have it reposessed and disposed of.

[steveoram1]

Have just noticed this thread. Nellie - if you signed the finance docs at home they are non-enforceable in their entirety. Finance docs must be signed on trade premises and the dealer must sign a 'Dealers offer and Warranty' confirming this is the case before the dealer is paid by the funder. I have scanned a sample of this document which I completed this morning. If you need a fuller explanation of the legalities send me a PM. The scan is here with the relevant text underlined.

ImageShack - Hosting :: dealersofferpc7.jpg

[nathal]

You will normally be liable to pay back the balance between the amount owed and the auction value of the car. ***** may have a fiduciary duty to obtain a reasonable price for the car i.e. normal selling price at the auction. Anything considerably less than the bottom price indicated on the glass's guide would possible give you grounds for referring the matter to the financial ombudsman service.

 

 

here is the response from fsa regarding hp company selling a car at auction without having a reserve price

 

 

check out glass's used car prices on here

PT-NoCookies

 

 

if the bottom price is 10k and the car is sold for way below this, the hp company could be classed as not fulfilling their duty of car.

 

My example is where the car was sold for 3k and the bottom value would have been 8k. The has to be som questions raised on this matter. Also in my case the hp company concealed the fact that the car was a non runner in the auction.

Only for myself to find out from the buyer.

[buzby]

A public auction is deemed an acceptable venue for the vehicle to achieve its 'true' value. Pointing out that its £Xk less than Glass/Parkers is no argument, and as for the HP co not disclosing it was a non-runner? This is an AUCTION, caveat emptor applies, and that's why there are viewing days to allow buyers a chance to make their own enquiries. Following this logic, for house reposessions the price should be what an Estate Agency says it is, not what the bidders are prepared to pay! (That won't fly either). The situation is easily avoided, if a vehicle has to go, the users sells it of the highest price he can, as it is in his interest to do so. Expecting this level of care from some uninterested third party is stretching incredulity to the limits!

[fairclaire]

I too am in disput with BCT over a repossession. Although my situation is a bit different.

 

I bought a car from them on a 4 year agreement. I paid faithfully every month and at the end of the third year my personal cicumstances changed and I found myself homeless and seriously struggling with money. After missing 3 payments they sent another company to repossess the car. I refused as I knew after paying over a third of the amount owed the car was 'protected goods' and the needed a court order to repossess.

 

A week later they came back again. I wasn't at home but the car was so they just broke into it took it anyway. When I telephoned BCT they said I had abondoned the car and they had a right to take it!!!??

 

I got nowhere with BCT so took it up with my local Trading standards office who wrote to them requesting that they pay me back what I have paid under the terms of the agreement. This is just short of £5000.

 

Not only have they refused to pay me back but they are now demanding another £2000 from me.

 

So to sum up I have paid £5000 to BCT, had my car illegally repossessed and they still want £2000 from me.

 

Trading standards have been very helpful, but not very forceful with BCT.

 

I am now at a stage where I don't know what to do next. I have given up hope of getting my £5000 back and seriously cannot afford to throw away another £2000.

 

I really sympathise with you. BCT are a harsh and unreasonable company.

[fairclaire]

incidentally if anyone can give me advice on the above would be most grateful

[buzby]

What you outline is a travesty - if the police could be bothered to do something and not hide behind the usual 'it's a civil matter', it would be difficult for them to be charged with thefy (as it was technically their vehicle until the final payment). However their actions have deprived you of the enjoyment of your purchase, and that means having to resort to the courts. Have they instituted any action against you for recovery? I seriously doubt whether TS will do anything positive, but I do think you need to get this in front of a Judge ASAP - so raising an action against BCT for depriving you of the benefit of your vehicle witrhout due regard for 'proper' recovery methods - effectively disadvantagfing you.

 

Why not calculate what you have paid them to date, and sue for this amount, plus interest. (I'm assuming your vehicle is now resold?). So as long as you are in the same situation as you were before the purchase, I see no reason why you cannot force this issue.

[fairclaire]

Thanks for that Buzby. Yes I have calculated what I have paid (£4,783) and am considering taking this to court. Just never having done anything like this before am unsure where to start etc and definately not in a position to afford a solicitor.

 

They haven't taken any action to recover the balance...yet. TS seem to think that was a reaction to my pointing out that they have broken the terms of the agreement and they actually owe me money. Incidentally according to their letter the car was sold for £400.

 

Am new to this site and not sure whether I should start a new thread for this or how to. So if i've invaded anyone else's thread...apologies

[buzby]

We're sort of elongating this one - so once you raise your action start a fresh thread! When calculating the charges, make sure you don't load them, as this makes it more likley that they will meet you in court to fight it. The English Small Cliams track is the way to go and your costs will be reasonable. Good luck!

[ejay]

Hi,

 

I am in a situation with Mercedes Benz finance where I leased car for three years. I decided to take the option of px and using the car as a deposit for my next vehicle, but due to bad credit on my file they declined my application.

 

Also, they sent me a notice of intentions which I happily filled in and gave them two options, one of which was to either px my vehicle or extend the current agreement for another three months. I don't understand why they choose to refuse to reply to any questions. They send a standard letter which does not answer my questions.

 

The total amount payable under the agreemtn is £17,783.28 of which I have paid £10,469.30, which is two-thirds of the total paid.

Can Mercedes Benz forcefully repossess the car or can I take them to court. Also, before I forget, in Oct 08 I sent them two payments by mistake, and to this day they have never acknowledged receipt nor have they written to me to advise that they have received a duplicate payment. I have chased them for an explanation, but they never respond.

 

Can anyone give me some advice on what I can do?

 

Thanks,

[buzby]

Your duplicate payment should not have been lost, it will still go into the pot - and you'll find that you are paying in advance due to the extra payment made. However, you should at least get them to confirm they recieved the payment and was correctly credited to your account.

 

It's a Lease (not HP) so the 50% rule won't apply here. Depending on the agreement they will probably have to take YOU to court if you don't keep up payments. Since a leased vehicle can never become your own property, it will eventually have to go back to them or their agent (dealer) at the end of term.

[EvilxElf]

It's a Lease (not HP) so the 50% rule won't apply here. Depending on the agreement they will probably have to take YOU to court if you don't keep up payments. Since a leased vehicle can never become your own property, it will eventually have to go back to them or their agent (dealer) at the end of term.

 

Hi

 

I've read the whole of the thread (I know it's old) but rather than making a new thread I thought I'd ask my question here in hope of some help.

 

I'm thinking of getting a car on finance (HP). The car will be around £13,000. My Plan is to pay a £6,000 cash deposit then finance the remaining £7,000 which (with interest) will be about £8500 to pay back.

 

What's this 50% rule you spoke about? Straight from the off I will have paid almost 50%, so after 50% is it harder / more complicated for the car to be repossessed if payments are missed because over 50% has been paid?

 

I, of course, tend to see out paying the monthly payments but I don't have a crystal ball and can't see into the future in case any unforeseen circumstances pop up financially.

 

I just can't get myself into a position where (if the car was repossessed) I could be in thousands of debt and have no car OR car repossessed, not much debt/no debt but had paid thousands into the car (because of the 6k deposit + monthly payments) and have no car.

 

EDIT - Just read on another site "You've paid half so they can't repossess without court order" - is that correct?

 

When is half way? Half way between the amount financed with the interest or half way between the price the car was bought at?

 

 

Thanks

Edited May 20, 2010 by EvilxElf

[buzby]

The car has a full declared value, in your case £13,000. You will be making a deposit of £6,000 and financing the amount remaining, £7,000. All these amounts must be shown on the agreement (not that the vehicle is 'worth' £7k).

 

So, you need to make payments of just over £1,000 (the exact amount depends on the rate charged to finance) so that (say) the full cost of the agreement is £14,500 - and you need to pay £1,500 on TOP of your deposit to reach 50%.

 

As you discovered, having paid 50%, it cannot be repossessed without court action. The other possibility is that having paid 50%, you can terminate the deal and hand back the keys. Be guided by the small print as yo what the agreement and termination rights are. You can ask for a copy of the terms to read in full before you formally sign.

[EvilxElf]

The car has a full declared value, in your case £13,000. You will be making a deposit of £6,000 and financing the amount remaining, £7,000. All these amounts must be shown on the agreement (not that the vehicle is 'worth' £7k).

 

So, you need to make payments of just over £1,000 (the exact amount depends on the rate charged to finance) so that (say) the full cost of the agreement is £14,500 - and you need to pay £1,500 on TOP of your deposit to reach 50%.

 

As you discovered, having paid 50%, it cannot be repossessed without court action. The other possibility is that having paid 50%, you can terminate the deal and hand back the keys. Be guided by the small print as yo what the agreement and termination rights are. You can ask for a copy of the terms to read in full before you formally sign.

 

Many thanks for the reply.

 

So I need to just need to make sure the car is valued at £13,000 on the agreement and not £7,000 in order to make it so I have around £1,500 to pay to hit 50%?

 

Handing the car back after 50% is a nice option to have but wouldn't really apply to me because the car should always remain worth more than the finance owed (because of the £6,000 deposit) as the car will be only do around 8,000 miles a year so shouldn't depreciate too quickly.

 

If I ever wanted to sell the car privately (whilst financed is still owed) could that be done if the buyer was to pay the finance company the whole amount off including interest then pay the remaining amount to me? Again, this is not something I would want to happen, but would like to know it's a choice if ever needed.

 

Thanks

[buzby]

DVLA will have the car flagged as having a 'beneficial owner' (the Finanace House). Any change you make to the V5C will be reported to the BO - not what you;ve done, just that there has been a change in their records. Siumilarly, HHPI database will show the vehicle is financed.

 

So, in the scenario you outlined you would first need to seek the lenders permission to sell, which they may not unreasonably deny. however they may be required to make payment to a third party (solicitor) in exchange for a letter formally giving them title. This will protect the buyer until the FH remove the inhibitions on HPI and the DVLA registers.

[luisedinho]

Lob Billing Finance into the mix-they are one hell of a shower. Read my thread about them under Scotland. They even keep up the war despite me asking fo SAR and being under FOS complaint!!!