Welcome Car Finance - Car Written off - BIG problem

[BlokeA1]

I am hoping someone can advise me here.

Basically I bought a car for my girlfriend in June 2008 through Welcome Car Finance. I don't know whether or not it is an HP agreement or Credit Agreement. The documentation states at the top that is a Credit Agreement regulated by etc etc but makes reference to HP within the jargon.

Here is the problem. A few weeks ago a drunk driver went into my girlfriend who was stationary in a garage forecourt. The car is a write off. As the car was on finance and she needs a car there was no option for us other than to take the insurance payout and get a new one - it is essential for her work that she was one. Also, the shortfall insurance was invalid as the car was neither registered in my name nor was I personally insured - which means it was missold because they knew from day one that it was not going to be in my name.

Thing is i'm nervous now. Have I broken the law doing this? The other problem is that I am in masses of debt and I can't afford to pay them now so i'm in arrears. They are aggresively hounding me for money I haven't got, they don't even know about the car yet and i'm scared senseless. I am undergoing pyschotherapy for along term mental illness and the stress of all this is not helping.

Can anyone advise me on what to do?

[my-spirit-soars-free]

What exactly does the agreement say? It is very important to know whether the car was on HP, or whether you just have a credit agreement.

 

Could you scan it, and post it on here, leaving out the identifying details? Or at least the first bit, just to give us a clue?

[buzby]

Shortfall Insurance - if you mean the value of the scrap car and the amount owing, has nothing to do with illegality or the Road Traffic Acts. It is there only to protect the lender that their investment may be compromised. The accident happened on private property, therefore it is up to your insurers to seek recovery of your costs from the other driver. If you have legal expenses insurance, then you could raise this action yourself. It is the other drivers insurance that are liable to you, do they should be pursued with all speed.

[my-spirit-soars-free]

Shortfall Insurance - if you mean the value of the scrap car and the amount owing, has nothing to do with illegality or the Road Traffic Acts. It is there only to protect the lender that their investment may be compromised. The accident happened on private property, therefore it is up to your insurers to seek recovery of your costs from the other driver. If you have legal expenses insurance, then you could raise this action yourself. It is the other drivers insurance that are liable to you, do they should be pursued with all speed.

 

 

I think the OP might be worried about the fact the insurance payout was used to buy another car, rather than settling the outstanding finance?

[flub1976]

Dont worry about it. If your insurance has paid you out instead of welcome then its welcomes problem not yours. Even if it was a hp it isnt now and they are just another unsecured creditor and should be dealt with as such. Ring them up tell them you cant pay and that the car was written off then make them an offer at what you can fairly afford.

[buzby]

Any settlement would (or at least) be known to the insurer making the payout, as finanical interests are recorded via the DVLA, which is why I'd be really surprised of any pay out with proof of title.

 

As for 'you cannot pay', that;s the fastest route to a fired credit file, a possible CCJ and a claim of fraud against the OP. There's good reason to be worried.

[flub1976]

No title is registered with DVLA other than the logbook which should be the op and will be asked for by the insurance company prior to payout. The finance may (or may not) be registered with HPI but they are often missed and there is no legal obligation on the insurance companies behalf to check it.

 

A fired credit file (by which I assume you mean a poor credit rating) is likely to happen but unless you can settle it or maintain payments at contractual rate then Im afraid that can not be avoided. You will be unlikely to get a ccj if you pay with agreement to the amount and the company have little choice but to accept any amount that is shown to be reasonable.

[buzby]

You're making this up as you go along. Nobody has said 'title' is registered with the DVLA.

 

To repeat, DVLA record details of anyone holding a 'notifiable interest' in the vehicle Further, if by 'logbook' you mean the V5C, then there is a considerable number of data fields held by DVLA that are NOT printed on this document.

 

HPI is a separate matter, and not relevant to the point being made.

[flub1976]

DVLA do not hold any form of record regarding interest of finance companies or anyone else other than the current and previous registered keepers and insurance writeoff claims. The only registration of a finance companies interest in a vehicle is by way of HPI, Car Data Check or similar companies all of which have data sharing agreements for the purposes of finance interests.

 

Standard industry practice of an insurance company is to payout to the policy holder with a copy of the V5c in the policy holders name and a clear HPI search.

 

HPI (or similar data base companies) are very relevant as the insurance companies will normally use a search of these databases prior to payout. I should point out that amongst other previous roles I have run the insurance claims department of a national finance company and was dealing with these all day long for three years.

 

Lets get back to the original posters comments here

 

It is HP as welcome is a HP company and couldnt sell a gap policy on a personal loan as there would be no insurance benifit.

 

The GAP cover can be argued as missold which will recover some of the balance but would probably not be much. (the misselling occurs as welcome aware car not insured or registered in name of main hirer (they should have put girlfriend as joint hirer)

 

Gap may not payout if there has not been a credit to the account by the hirers insurance policy (some do some dont)

 

Gap covers the difference between the payout from the insurance company and the settlement of the account at the time of accisdent less any arrears excess charges etc. In most case and certainly with a welcome policy

 

If the hirer is in financial difficulty and not paying credit then this is not a case of protecting this credit rating but dealing with welcome and reducing stress levels really. The best avenue for this is to talk to them or if you are really struggling seek some advice from CAB or similar, but one thing you should do is advise welcome that the car is written off and that you have spent the insurance payout, There is no criminal act just a civil issue and the police are not going to come and arrest you.

 

Get some help from CAB and offer them a reasonable amount against what you can afford in relation to all creditors.

[buzby]

I cannot put this moire tactfully - since you've no idea what you are talking about, stop misleading others with your suppositions.

 

I know what the DVLA do, and I know all the data fields they store that do not appear on the V5C. I actually made it my business to discover this. It would therefore appear you are denying such additional information information exists on the DVLA record? With only the HPI 'register' providing the information on those firms having a notifiable interest?

 

Have you ever seen a Dealer's Registration Form, the one used to generate a V5C? Have a look at the information fields required, noting especially those parts concerning the any entities that will have a notifiable interest in said vehicle. THis is for the government record, NOT the additional private enterprise bolt-on that is the HPI

 

Since this is erroneous, I suggest you undertake some additional research. ON the other hand, put you money where your mouth is. Say, £10? We can then make it a case of put up or shut up? Yes, we could indeed move on to the OPs interet in gap insurance - but let's clear up one mess at a time.

 

As for the misappropriate of the funds of the vehicle payout, admitting that the insurance payout has been 'spent' is fraudulent - let's be clear on this. The funds should not have been accepted, or at the very least signed over to the beneficial owner of the goods. The vehicle user simply paid for the use of these wheelse on a deferred basis, and has no right to any settlement.

 

Of course, whether the police actually do something is another matter. These days with financial fraud, the banks and financial houses usually deal with these issues directly, and the civil courts used to enforce, bankrupt or sequester as appropriate.

 

There's no mystery, and is fairly common at a time when money is tight. THis is no different from someone recieving a windfall into their bank account and spending it. They money was not theirs, they were not entitled to it, yet they spend it. I can assure you. it is not 'game over' when it comes to seeking redress.

[flub1976]

Buzby you seem to be turning this into an argument about me or my advise. Im not going to argue or dissagree with you as I cant be bothered to, I accept you dont agree and decline to discuss with you further but please stop sprouting info not based on HP etc, this guy is confused enough over a reasonable common place issue and doesnt need the wits scaring out of him when not needed.

 

To BLOKEA1 no you shouldnt have spent the money, I can see why you did but you shouldnt have. However there is no crime here it is a breach of contract and as such would not be missappropriation of funds but you MUST advise welcome whats happened and speak to them to arrange repayment (however small) It doesnt sound like you have a lot but if you pay a fair and proportional amount to all your credittors then they will not be able to do a great deal else. This happens alot and you do not need to be scared but you do need to speak to them.

[buzby]

The issue is one of factual misrepresentation. The DVLA can and do record details of interested parties. that's all. The fact you cannot be bothered to prove your statement speaks volumes.

 

Perhaps in future, indtead of representing things you believe 'as fact' you check them? The DVLA are quite happt to disclose the data they retain. I asked, and they told me.

[loopylil]

Hi Bloke, i had car yrs ago on welcome finance. Mine was writ off too. The cheque will go to Welcome finance not you as mine did.It left a balance but i refused to pay anymore to them as theyed already had the price of the car and more, by refinancing it. I wasnt alone at the time there were other people with same problem who also refused.