Advantage Finance - Car Repossessed / Need Advice Please

[Eagle Eyed]

Hello All,

 

In October 2008 I passed my driving test and, stupidly, rushed out to look at cars so I could get on the road. At the time, I was in full time employment on a reasonable wage so figured it would be fine. I went for the first I really liked from a local garage, a little Vauxhall Corsa at £2799. I got finance through Advantage Finance.

 

Sadly, a year later, I found myself off work due to a medical condition that re-emerged, something that has developed into a full blown disability which means I struggle to walk even a few metres and, as my job entailed being on my feet for several hours a day, I had to leave work after six months on SSP. I am now on Incapacity Benefit and Disability Living Allowance, so as you can imagine money is extremely tight.

 

The car was repossessed in February 2010.

 

In June 2010 I received a letter from Advantage Finance stating that the car had been sold at auction for £1325 and that I had an outstanding balance of £5794.14. After a few months of letters from them, they sent me another to say that they would reduce this to £3000.

 

I, reluctantly, agreed to pay this at £50 a month. Under this agreement I still currently owe £2480. Unfortunately, the current state of the economy is weighing heavily on myself and my wife and I am struggling to maintain this payment.

 

I have been reviewing the paperwork I have for this finance and noticed something interesting - in the original agreement, it is stated that "If you do not keep to your side of this agreement but you have paid at least one third of the total amount payable under this agreement, that is £1700.85 the creditor may not take back the goods against your wishes unless he gets a court order."

 

After going through the statement I requested from Advantage, before repossession I had paid £2602.69.

 

I'm not really sure where I stand on this. I feel as if I shouldn't be paying anything more to be honest, but have been "trying to do the right thing". I would really appreciate some advice.

 

Thankyou in advance.

[HadEnough]

Hi there. I can't really offer much advice but as I'm going through a similar thing as you I would suggest that you shouldn't be paying anything at all.

If you could post a few more details so others more knowledgeable will have more to get their teeth into.

Did they send you a default notice?

Did they send a termination notice?

Did you sign a VS (voluntary surrender) form?

Was there PPI?

Was there default charges added?

Do you have all the paperwork?

If not you might be best to send a SAR. Hopefully some-one who can offer more solid advice will be along shortly.

Good luck

[Eagle Eyed]

Hi HadEnough,

 

Thanks for the comment. And you're absolutely right, let me provide a little more information.

 

Yes, a Default Notice and Termination Notice were both received.

A VS (Voluntary Surrender) Form was never signed or offered.

There was PPI that was not requested or wanted.

Yes, there were default charges added.

I have most, but not all the paperwork. Advantage have provided statements.

 

I'm very worried about this, I am due to make another payment shortly and things are extremely tight. Any advice would be greatly appreciated.

[Anus Horribilis]

 

a little Vauxhall Corsa at £2799

 

sold at auction for £1325

outstanding balance £5794.14.

before repossession I had paid £2602.69.

 

Good grief - you were supposed to repay £9,721 for a loan of £2,799? That's worth talking to CAB about, it seems indefensibly costly terms.

[Eagle Eyed]

Good grief - you were supposed to repay £9,721 for a loan of £2,799? That's worth talking to CAB about, it seems indefensibly costly terms.

 

I must have been out of my damn mind.

 

[Ell-enn]

Who did they send to repossess the car?

[Eagle Eyed]

Who did they send to repossess the car?

 

Red Rose Recoveries.

[Ell-enn]

Did you hand over the keys voluntarily or did they intimidate you into it ?

[Eagle Eyed]

Did you hand over the keys voluntarily or did they intimidate you into it ?

 

More intimidating. There was two of them - man and woman - and were extremely beligerent. I kicked off with Advantage on the phone, got the blah blahs, got upset and virtually threw the keys at the guy. Nothing was signed.

[Gaston Grimsdyke]

Good grief - you were supposed to repay £9,721 for a loan of £2,799? That's worth talking to CAB about, it seems indefensibly costly terms.

 

No, that can't be right. The agreement states the amount required to pay one third of the total purchase price is about £1,700, so the TPP must be about £5,100. Paid about 2.6K, sale proceeds about 1.3K leaves about 1.2K outstanding. Where do they get £5,794.14 from? Ok there will be some default charges, costs of repossession and sale etc but 4.8K difference? Unless of course the agreement wrongly states the thirds figure.

[Notary Aching]

Hi. Are you still paying £50 p/m for the HP agreement?

[Eagle Eyed]

No, that can't be right. The agreement states the amount required to pay one third of the total purchase price is about £1,700, so the TPP must be about £5,100. Paid about 2.6K, sale proceeds about 1.3K leaves about 1.2K outstanding. Where do they get £5,794.14 from? Ok there will be some default charges, costs of repossession and sale etc but 4.8K difference? Unless of course the agreement wrongly states the thirds figure.

 

I've been going through the paperwork and this is how it breaks down:

 

Amount Of Credit: £2799

Interest: £1903.56

Acceptance Fee: £200

Total Amount Of Credit: £5102.56

 

(Note the mistake above)

 

So, that's the Credit side. They've then added "Agreement for Optional Insurance", although they were very clear that it was not optional at the time of signing.

 

Total Amount Of Credit: £2413.67

That includes: PPI £1163.67; Mechanical Breakdown Cover £595; GAP Finance Protection £495; Theft Protect £160.

Interest on Above: £1641.37

Total Charge For PPI: £4055.04

 

Total Charge (Credit + PPI) : £9157.60

 

Every time I read through that I realise how absolutely ludicrous it is.

 

Hi. Are you still paying £50 p/m for the HP agreement?

 

I am currently but am taking advice on it with Citizens Advice tomorrow. I am also considering legal advice and I will be actioning an SAR as soon as I'm able to cover the cost.

[Eagle Eyed]

Update: Just spoken to Consumer Direct who were very interested to hear the car was taken even though over a third has been paid, and are passing the details to Trading Standards. Advised very strongly to go to CAB which I will be doing tomorrow morning (weather permitting).

[Markiemark1]

I'd sue them for every penny back again!

[Eagle Eyed]

Update:

 

Had a letter from Advantage Finance last week, 2 pages of them denying any wrongdoing whatsoever and saying that the car was repossessed correctly and the PPI was sold correctly. Then, on the 3rd page, as a "gesture of goodwill" offered me a refund of the PPI from the beginning of the agreement!

 

So, they've offered me that, but state that it will not be refunded directly to me but will be used to pay towards what's left on the account. They're also trying to state I still owe more than I have calculated. I've also heard nothing about the SAR, despite this being sent a few weeks ago.

 

So, two questions:

 

Do PPI refunds - goodwill or otherwise - have to be repaid directly to me or can they take it off the account?

 

Should I still pursue the SAR request?

 

Thanks All.

[LesleyDeacanjason]

Any updates on this one, would be interested in hearing!