Settlement figures with DCA

[Sea Gull]

wondering if anyone can help on this one, I have contacted a DCA who are well known on here for a settlement figure to which they have quoted me - what i have asked is that the acount be marked satisfied and my liability is over with them.

They are saying that the account will be marked settled and that they will close the file.

Would this be the end of the matter or could they sell the debt on and this comes to light again in a few years time.

Obviously no point in borrowing money from a friend to clear these people just to find there is still a 'sleeping debt' that will pop up again when they decide to have a pass the debt around.

Any help please.

[silverfox1961]

hi,

Me being the cynic that I am, I would say to them that this is a full and final settlement and that they agree to mark your file accordingly and not to sell any balance on.

Just because they close their file doesn't mean they won't sell it on for another DCA to open a brand new file.

 

Like I said, I'm a cynic

 

fox

[Sea Gull]

That is exactly the issue that I have with them for the record the company is Direct Legal Collections not nice people!

Also when I asked for the CCA and a statement of account they threatened me with a CCJ and to then go for securing the debt!

I want rid of this as fast as possible - but not at the expense of having a little worm can re appear some 5yrs later!

[Sea Gull]

another thing i would like to ask is this in fact correct - this is what the DCA have said in an email to me

 

We are legally unable to mark your credit file as anything but settled if the full balance is not paid. That does not mean any other agency will ever be able to pursue you. It means that a file is closed as a settlement has been accepted and the liability has been released. This matter is something I can not change.

 

Would like any thoughts on this matter tthankyou

[silverfox1961]

What utter twaddle.

 

As part of any settlement, negotiation is the key.

If you want your credit file cleared, you can ask them to do so as part of a F&F. They're not obliged to agree to this but them saying they can't "legally" is rubbish. They control the credit files (with the help of the CRA's)

 

Part of the agreement you signed (or not as the case may be) included parts where the say they will search and mark your credit file accordingly but there is no obligation on their part to do so if they wish. They're not forced to. I think they do it as part of an agreement with other financial institutions to show how you manage your credit.

[buzby]

Only the original creditor can add or append information to your credit file, because you gave them permission to do so. I'm still unclear whether they have the right to modify your file to say that it has been paid - I understood the original creditor needs to do this. However, whoever you pay, you need to get a receipt to prove that the debt has been paid, and you retain this until you have this fact recorded on your file. After this - and remember it will not disappear, just show settled or satisfied and remain. It cannot be 'unmarked' so this wonlt be an issue.

[Sea Gull]

To be honest these are such nasty people to deal with that I really want shot of them as quickly as possible.

Its doubtful that they have the correct paperwork as this is the outstanding money left after a car that was voluntry terminated and then sold at auction - as i have been paying monthly for over 2yrs I cannot say it is statute barred as my payments say that i have accepted admission, they are threatening me with a CCJ now as i asked for the CCA and then will go for Securing the Debt, obviously if they do not hold the correct paperwork then its not enforceable correct?

Its just trying to see if my nerves will hold for another 2yrs

this has been ongoing since 2000.

[buzby]

They cannot threaten you with a CCJ - they can only threaten you with taking you to court for the debt, it is the court that provides the CCJ and only after you don't pay the amount agreed by the court. Also, if they did - you could argue they are attempting to penalise you twice, as your credit file also shows the debt, court action would allow Registry Trust to show two defaults for the same debt - and I'm sure that's not allowed.

 

Are the DCA acting on behalf of the finance house, or has the debt been sold on?

[Sea Gull]

need some more advice please - just had a letter from DLC and they have changed the client from Volkswagen to Hillesden Securities - can they do this also why have they done it, and what does it mean when they say

"Our client reserves the right to pursue any other borrowers for the remaining balance"

 

Thanks

[Sea Gull]

Buzby there is nothing on my credit file for these, and the same was true 6yrs ago - the car was a vouluntry termination this is the residue left from the sale of the vehicle, which i have been paying 30 a month and have never missed a payment.

I asked them for a settlement figure which i was trying to negotiate down

it was when I request a Statement of Account and the CCA they said if i dont accept the figure quoted the instalments would be cancelled and the whole amount would be due.

thats when they would issue a CCJ and then look to securing the debt

[buzby]

The're being hard - but unfair, so if it came to court a judge may side with you! Firstly, the name change - Volkswagen/Hillesden Securities, Volkswaged make carse, not provide finance. I would expect HS to offer finance branded and/or promoted by VW - so the name would be sort-of irrelevant to your issue, is is most likely cosmetic.

 

Asking for a Statement of Account is a reasonable request, especially if you do not get regular statements to show your indebitedness to them (and yo help you identify that payments are being correctly applied). Once you have this information, you can then kick into a higher gear. Do you have any paperwork showing your 'special repayment agreement'?

 

If you make a CCA request, you are requesting data - and this cannot be taken as conduct unbecoming to cause the cancellation of your existing repayment plan. They're trying to bully you, so don't be intimidated by them.

[Sea Gull]

Thanks Buzby

Yes I do have letters stating my agreement to pay each month but they tend to review this every 6 mths after last time they threatened me and I reportred them to th OFT they made it 10 months which is still current.

Hillseden - DLC- and Ruthbridge re all the same company (well documented on here) the finace was with Volkswagen Financial Services in 1996 as i say this is the left over from the car sale.

[Sea Gull]

Just an update on this one

have come to an agreement re the settlement figure that all are happy with

thankyou to all for the help you have given me!

[Toulose LeDebt]

To be honest these are such nasty people to deal with that I really want shot of them as quickly as possible.

Its doubtful that they have the correct paperwork as this is the outstanding money left after a car that was voluntry terminated and then sold at auction - as i have been paying monthly for over 2yrs I cannot say it is statute barred as my payments say that i have accepted admission, they are threatening me with a CCJ now as i asked for the CCA and then will go for Securing the Debt, obviously if they do not hold the correct paperwork then its not enforceable correct?

Its just trying to see if my nerves will hold for another 2yrs

this has been ongoing since 2000.

 

SeaGull hold fire a moment.

 

You say the hp agreement was VT'ed. and the vehicle was subsequently sold at auction.

 

Are you firstly aware that upon voluntary termination of an hp agreement the maximum liability (assuming the vehicle was returned) is reduced to 50% of the agreement value.

 

EG If the car is £7000 and the agreement with interest and all the other charges is £12000 over say 4 years then if you return the vehicle at any time the most you are liable to pay is £6000 ie half the agreement value.

 

Say you'd paid the agreement for two years missing a couple of payments and the total paid was £5,000 then you would be liable for only £1000 upon return of the vehicle.

 

The car finance companies are particularly good at not telling you this and coming out with terms llike 'early settlement fees' and 'shortfall'.

Are you able to total up all payments you have made towards this agreement? If you can then subtract these from the figure which is exactly half the total agreement value to see how much if any you owe.

The car finance company would have you believe that they sold the vehicle for considerably less than the value of the outstanding balnce.

This is completely irrelevant since because you have returned the vehicle the original agreement value is DOUBLE your maximum liability.

It makes no difference whatsoever to the balance due or not whether the finace company sold the car for £1 or £1,000,000.

Claim back any missold PPI with interest etc.

 

If you had paid more than half the value of the agreement prior to VT'ing this is not recoverable.

 

If you have been deceibved into paying monies you were not lawfully liable to pay AFTER the VT and return of the vehicle I think you would have some legal redress since misrepresentation with a view to depriving another is fraud.

Edited July 7, 2009 by Toulose LeDebt

[Toulose LeDebt]

Consumer Credit Act 1974

 

Sec 100

 

100.—(1) Where a regulated hire-purchase or regulated conditional sale agreement is

terminated under section 99 the debtor shall be liable, unless the agreement provides

for a smaller payment, or does not provide for any payment, to pay to the creditor the

amount (if any) by which one-half of the total price exceeds the aggregate of the sums

paid and the sums due in respect of the total price immediately before the termination.

[Sea Gull]

To be honest the car was around 9k interest included

it was sold for around 3.500 so there was a total of 4489 left which was then passed to dlc some mths later, a lot of what happened I really cannot remember as my partner had died and we did not need two cars hence mine being returned,in hindsight I would have dealt with this much differently, as i say 9yrs later and this is still an ongoing fight, I recieved a settlement figure for 1224 which was half of what I still owed - this has since been paid and Iam still awaiting the confirmation letter from them.

After all the aggro of this company sometimes there just comes a point where enough really is enough!

Wrong I know but I have spent far too long worrying over this particular issue, I havent ruled out taking my own action against them.

ut for the moment it keeps my house safe and me sleeping properly

Edited July 7, 2009 by Sea Gull
posted twice

[Sea Gull]

To be honest the car was around 9k interest included

it was sold for around 3.500 so there was a total of 4489 left which was then passed to dlc some mths later, a lot of what happened I really cannot remember as my partner had died and we did not need two cars hence mine being returned,in hindsight I would have dealt with this much differently, as i say 9yrs later and this is still an ongoing fight, I recieved a settlement figure for 1224 which was half of what I still owed - this has since been paid and Iam still awaiting the confirmation letter from them.

After all the aggro of this company sometimes there just comes a point where enough really is enough!

Wrong I know but I have spent far too long worrying over this particular issue, I havent ruled out taking my own action against them.

ut for the moment it keeps my house safe and me sleeping properly

[Toulose LeDebt]

Okay.

 

if the original agreeement was £9,000 whatever the vehicle sold for is irrelevant. Your maximum liability is/was £4500.

 

So add up all the payments you made prior to termination and subtract them from £4500.

 

If this figure is is £0 or less then you have overpaid but cannot do anything.

 

If this figure is greater than £0 this was your maximum liability at time of termination.

 

I suspect the finance co have told you that you owed the full balance minus what the vehicle sold for.

 

From the sums provided you appear to have paid approx £1000 of the agreement off prior to termination so your liability would have been £3500 and not the amount outstanding minus sale revenue.

(The sum of £4489 outstanding would have only been due if prior to termination you had paid a total of £511 on a £9,000 agreement if that helps jog the memory).

 

Charges and interest applied unlawfully on the incorrect 'greater' balance will have resulted in you having to repay even more than you were lawfully liable too.

 

You need to sit down with any paperwork you have and do the sums.

 

I think you'll find you've been unlawfully charged more than your liability and had to pay interest upon that sum too.

 

Two offences being committed here IMO a breach of sec 100 of the CCA 1974 and each statement/letter etc. showing you owe money you don't is possibly a breach of Sec 17 theft act 1968 (false accounting).

 

It's also a breach of OFT guidance to collect or threaten to collect monies when the DCA is relying on the alleged debtors ignorance of their legal position.

[Sea Gull]

Thankyou Toulose I will dig out all I have and see what has been paid

and what my next move will be.

[Toulose LeDebt]

You're very welcome Seagull. See what you can find and come back to us with the numbers and you'll get all the advice, help and support you need from Caggers.

 

As soon as I see the words 'vehicle sold at auction' in an HP thread I know the OC is trying it on, if not the OC then the DCA.

 

The law says your maximum liability is 50% minus what you have already paid. This is to stop the finance co. 'selling' your vehicle to a family member/friend for a quid and billing you the diffrerence. (Which many of them will try to do anyway).

 

I would guess that you have been chronically overcharged and those involved know this so I would get off a SAR for any paperwork you don't have before it goes missing (ie the minute they find out you've learned your legal rights).

 

If you have at some stage met your liability under this agreement then any subsequent document purporting to show a balance due is a false instrument, a criminal offence and any monies paid as a result of such documentation is recoverable through the courts.

 

Sounds like you need and deserve a good cup of tea to get over years of torment first though, then go on the attack and do to them what they've done to you with the one major difference being that you at no time did anything criminal.

 

For a finance company licenced under Consumer credit regs to plead they were not aware of the debtors sec 100 liability upon termination will not wash in front of any Judge. They have done this knowingly and with intent to deprive.

[Sea Gull]

Ok have looked at the figures which come out as follows

car was sold for 4237.00 that took the balance to 4550.13

Liability was restricted to 3794.29

Half total amount payable less rentals and including deposit

TAP 4597.41

Dep 308.10

Paid 495.02

total = 3794.29

 

as I said I hadnt ownned the car that long and my Partner died,

there were charges added as i didnt have the 3794.29 to pay then it was passed to a dca 3yrs later and thats the story so far.

[Sea Gull]

car was bought for 6995.00

interest was 2199.82 total finance was 9194.82

with credit insurance at 38.62 a mth making my payments 222.51