Fixed Sum Agreement - Termiantion Notice - help please

[harley2131]

Hello

I took out a Fixed Sum Loan Agreementin 2009 for a car with Arnold Clark, Fortis Lease Finance. I have fallen behinddue to unemployment but need my car for my children and if a job came up andhad to travel. My difficulties started in November 2011 and have been ongoinguntil recently were I have just started working again. Could you have a read ofevents and let me know what you would do??

Via email (allkept):

23/11/11 acceptedour offer of £275.61 plus £50 towards our arrears each month. Stated if unableto make payments, car can be surrendered to them and they will sell throughauction. Giving me the shortfall balance to pay.

23/12/11 Paymentreceived

Jan 12 Set upDebt Management Plan with CCCS as unable to make payments to debt companies andneed to get on track with it all. In arrears with mortgage, gas and electricand water and these are my priorities to pay before this loan.

31/1/12 Fortisrejected offer of £13 per month in addition to monthly payment. Email pushingme to surrender car.

6/3 – 13/3/12various calls left to contact Fortis for payment as not accepting £13

15/3/12 received surrender forms to fill in forcar

22/3/12 I asked for balance of loan and how much Ihad paid off the loan to date

23/3/12 InformedFortis I would not surrender car as I would not get much through auction. Askedif I could sell the car myself (however, noted there is a HPI interest on carwith Fortis and it’s not a HPi agreement) as I would get alot more to clearbalance. Informed I would make the normal monthly payment at the end of March.

23/3/12 Informedme if the vehicle was not surrender Fortis would terminate my agreement to recoverthe full balance.

23/3/12 Fortisinformed me, Due to the level of arrears we will not enter into an arrangementwithout the vehicle being surrendered to assist in reducing the totalliability. Unfortunately I cannot elaborate further on litigation as oursolicitors would decide on the best course of action.

23/3/12 DefaultNotice sent, received 26/3/12. Payment of arrears to be paid before13/4/12. Further action; by written notice terminate the agreement on the dateshown. Require balance of £8429.33

Outstanding balance due under agreement £9090.50

Less rebate of charges £661.17

The full sum £8429.33

29/3/12 monthlypayment of £275.61 due

2/4/12 Wrote toFortis to ask if we handed car in, what was deadline. Asked if arrears werecleared (borrow money) would they allow us to continue monthly payments.

3/4/12 InformedFortis we could afford to pay £600 per month until arrears cleared as we wouldconvert mortgage to interest free until debt settled.

4/4/12 receivedreply: Please accept my apologies forthe delayed response, I was on annual leave and unable to deal.

To clarify our position on this matter; Due to the level ofarrears we are not willing to enter any arrangement unless the vehicle issurrendered. We will accept an offer of repayment on any shortfall balanceafter sales proceeds are applied.

However, if you wish to continue with the agreement then we requirefull arrears of £1,989.25 then payments to continue at the contractual amountfrom 29th April 2012.

4/4/12 DefaultNoticesent, received 6/4/12. Payment of arrears to be paidbefore 19/4/12. Further action; by written notice terminate the agreement onthe date shown. Require balance of £8417.33

Outstanding balance due under agreement £9078.50

Less rebate of charges £661.17

The full sum £8417.33

10/4/12 Paid £100

20/4/12 ReceivedTermination Notice on 23/4/12. Informing me stating I had not paid thearrears.

Arrears outstanding £1889.25

Balance of agreement £7189.25

The full sum £9078.50

My questions:

1. How has balance increased from 4/4/12 from£8417.33 to £9078.50?

2. Why have they put a Interest on thevehicle when its a Fixed Sum Agreement?

3. Can they serve another default noticewhen served a one previously before the 14 days have finished?

4. What will the court do? Will theydemand the vehicle back?

[harley2131]

Bump

[harley2131]

please can someone help me

[asokn]

Hello

]My questions:

1. How has balance increased from 4/4/12 from£8417.33 to £9078.50?

2. Why have they put a Interest on thevehicle when its a Fixed Sum Agreement?

3. Can they serve another default noticewhen served a one previously before the 14 days have finished?

4. What will the court do? Will theydemand the vehicle back?

 

Sorry you've not had any replies yet.

 

1) You will have to ask the creditor for a statement of account to see why the balance has increased and whether any additions are legitimate. I suspect they have charges interest and fees due to your default.

 

2) I don't understand what you mean when you say 'a interest'?

 

3) I don't see why not provided that they have not terminated the agreement on the basis of the first default notice if that notice was in some way defective.

 

4) The court can, and frequently does, make a suspended return of goods order on the basis that monthly payments are maintained. The court can make any order it considers just and therefore can extend the term of the agreement by ordering you to pay less than the contractual instalments. The court can however order that you return the goods immediately so it is important that you engage with any court claim, file a defence and attend the hearing.

[harley2131]

Firstly, thank you for replyin to my post. I really appreciate that.

 

1. The first quotes had interest rebates on reducing the figure, the final amount doesnt seem to have this on.

 

2. By Interest, I mean they have put a hold on the vehicle like a HPi so I cannot sell privately until finance cleared. It is definately not a HPi agreement.

 

3. Will I have to attend court or will I just need to fill forms in once received off court

[asokn]

1) I suspect that you would not be entitled to a rebate if they had to terminate the agreement due to your default and therefore it has been removed. I can however only repeat my earlier suggestion that you ask for a statement of account as without that it is just guesswork.

 

2) Was the agreement secured on the car at all? Is there anything in the terms and conditions which all them to fix a charge in the event of your default?

 

3) You *should* attend court but you are not really obliged to. If you don't then you miss the chance to go before the judge and put your case; it is always better to attend because even if you complete the forms there is no guarantee that they will be on the file for the hearing and in any event the judge is likely to be much more sympathetic if you attend. The hearing is not like on TV; there will be no wigs and gowns. You will go to the judge's chambers which is basically his office and will be allowed to speak in plain English in a relatively informal environment.

[harley2131]

1. Thank will do.

2. nothing in terms states secured on car. £15 per default notice.

3. I will do thank you

Just worrying as waiting for further information.

Just wanted to know my rights. I cannot afford £275 per month but cant let car go either.