Vehicle about to be repossessed - best way forward

[dsthubbins]

Hi all, I need some advice please: my car is about to repossessed (by British Credit Trust). Its a standard Hire purchase agreement and I have quite a bit of arrears on it so I can't hand it back under the early termination clause (even though I have paid over half the total amount). The repo company have suggested that I agree to voluntary termination, to save the hassle and expense of them getting a court order. Is that that the best way forward?

I understand that the car will be sold at auction and I know this will still leave a shortfall, which I presume BCT will chase me for. I did try and see if BCT would enter into a payment arrangement to clear the arrears but their agent (Wright Recoveries) tell me they won't entertain this and will want the full amount of arrears - which I can't afford to pay in one go.

As an aside, I have asked Wright Recoveries for a statement to show how the arrears amount has been arrived at but they reckon BCT won't want to give one - they just want to get on with it. That can't be right can it?

I'm resigned to losing my car (its my fault - I should have tried to make some kind of arrangement with them sooner) but I don't want to be taken for a ride or store up potential future problems.

Any advice would be really welcome.

Edited February 7, 2011 by dsthubbins

[Jasper1965]

Dont terminate the agreement they must take you to Court to repossess the vehicle, agreeing to a termination will leave you without the vehicle and with a shortfall which can be disproportionately large as they "don't always get the best possible price at auction on your behalf" . This is why they are suggesting that route to you they will have had "more than half the monies due under the agreement", the proceeds of the vehicle sale and the "shortfall" which would realise a tidy profit for them.

 

There's no guarantee that they will ever take you to Court but if they did then you can apply to the Court for a "time order" whereby you repay the balance at a rate you can afford.

 

Get a cca request in asap if they're talking about Court.

 

It would be best if you wrote to them stating you have no intention of terminating the agreement, making an offer to pay the remaining installments as and when due with an extra payment on top for the arrears. Mention that you would seek a time order in the event they apply to Court for a repo order and they might just accept that it is in their best interests to avoid Court.

Edited February 12, 2011 by Jasper1965