kia [AG] Finance , various court cases on repro/short payments.

[NinaS]

Hello everyone,

 

In June 2007, we took out a car finance with Kia (ag finance).

 

For 10 months we made payments no problem.

 

In April 2008 oh got made redundant.

 

He signed on and an insurance we had kicked in for a year, so payments were still made on time.

 

After the insurance ran out, our tax credits increased and the dwp paid our mortgage for another year, the payments were made on time.

 

Then, when the help stopped,

oh had to stop signing on, because we no longer had help with our mortgage

 

oh needed to sign up to agencies to get work (a day here, a day there, a week here a week there)

to enable us to keep up mortgage payments, dwp don't allow for this when signing on so he had to come off that.

 

That when our payments with the car ended up going into arrears, although I did make payments when we had money.

They ended up taking us to court.

 

Despite everything, the judge ruled against us, and said we had to continue to make contractual payments.

Which we did for a few months, but then it got hard again.

 

So we called them and said, can we please reduce payments. tHey said no, go back to court. So we did.

 

In the preperation for this, we noticed a few discrepancies in the agreement.

 

Firstly, it lists the part exchange as £2500, we were told it would be £3000.

 

Secondly, the car on the agreement is a Kia shortage diesel estate,

what we actually have is a Kia sport age petrol hatchback.

 

Thirdly the deposit is listed as £250, we paid £500 and have a bank statement to prove it.

 

And finally, the car is registered to me, but the finance is in oh's name.

 

When we went to court and tried to point all this out to the judge

they told us that they weren't there to consider that, and that we still had to continue making contracted payments.

 

Which again we did for a few months.

 

Again we found it hard and this time they ended up taking us to court and asking for a possession warrant.

Which they were granted and we were told keep up payments or else.

Again we did for a short amount of time,

 

then finally, I wrote ag finance a letter explaining to them,

why we couldn't afford the payments,

that it was not in their interest to repossess the car it is no longer worth anything near the outstanding debt.

 

That we were willing to continue making payments but couldn't afford that much.

I included an income and expenditure and many reasons why we needed to have the vehicle.

 

Their answer was once again, go to court.

 

However before we got that far they sent a bailiff around to repossess the car,

they were just about to take it when my husband pointed out that the car they were taking was not what was listed on the warrant.

 

The court bailiff called her manager who, said they weren't allowed to take it.

So they didn't but advised us to go back to court as they would probably be told to come back.

 

The court date was last week. Once again, the judge wasn't interested in anything we had to say, and said make the payments or give the car back.

 

We have sought advice from the solicitors, national debt line, cccs, trading standards and even no win no fee solicitors, none of whom have given us any definitive advise.

 

We are not solicitors and so have no legal training or knowledge,

but dh read in the small print that you have the right to rescind if anything in the agreement is wrong,

getting back all monies paid into the account.

 

He has sent off a letter asking to exercise his right to recsind,

we don't actually know what this means, or if it will even help.

But we didn't know what else to do.

 

As you can see we have tried everything to get the payments at a rate we can afford nd they just don't want it.

We can't get another car, we don't have that sort of money, but we need one.

 

I'm stressing cause I think any day now they will come and take it and we'll be stuffed!

 

So I suppose whatnim asking is, does anyone here know anything?

Does anyone have any helpful info?

Or does anyone know if he's done the right thing with the 'right to rescind'letter?

 

Please help we are desperate!!

[NinaS]

Sorry that's a long one isn't it. Please please help!!!

[Ell-enn]

How much do you still owe on the agreement? You have been paying for 5 years?

[NinaS]

The finance was for £21,000 we owed £9,000 when we got a statement last year, we have paid some more since then. We have been paying for 5 years, but on and off (more on than off) and not always contracted payments.

[NinaS]

Does anyone have any information on this that may help?

[NinaS]

We're having problems with Kia finance (see my post in vehicle repossessions.) but have noticed on the finance agreement it says if anything is in correct we have the right to rescind. What does this mean?

[garage flower]

Your 'right to rescind' seems like different wording for 'voluntary termination' which terminates the agreement for no fee if 50% of the account has been paid and the account is not in arrears. As you have said your account is in arrears you will have to make an arrangement to pay these arrears. In order to go ahead with this you would also have to hand back the car however so I don't think this is an option for you.

 

Regardless of whether or not the car is worth the outstanding debt is irrelevant. If they repo the car they will sell it at auction and you will still be liable to pay any shortfall on the account after the sale

[NinaS]

" if any of the above statements is untrue, (whether I/we are aware or not) you shall at your option either to rescind the sale of the goods to you or require me/us to make repayment to you in accordance with 3.2.3 below or to require me/ us to indemnify you against all losses suffered by you by reason of such untrue statements.

 

3.2.3 you shall be entitled to rescind the sale (if made) of the goods to you and I/we shall upon your request make payments to you of all amounts paid to me/ us by you (including any commission) in respect of the agreement or, where all or any of these amounts have been credited but not paid you shall be entitled to debit out relevant accounts with such amounts.

 

That's what the agreements says.

[garage flower]

That's not something I've come across before. Ask them about it and see what they have to say.

[NinaS]

That's not something I've come across before. Ask them about it and see what they have to say.

 

Well we've sent a letter saying that we'd like to excersise our right to rescind. That was about a week ago and as usual we've not heard anything yet. Thing is we don't actually know what this means, we're only guessing.

[Ell-enn]

Did you send the letter by recorded delivery? if not they will probably say they didn't get it

[havinastella]

Just popping in before bed and will take a look tomorrow!

 

It seems you have a full house here against a pair of 2's.

 

They can't get the car back as it's completely different from the credit agreement. You've already proved that.

 

Let me try to get some more info!

[assisted blonde]

To recind a contract is the right to cancel it and put the parties to the contract back into the position they were in before the contract was taken out, the right to recind has to be an agreement by both parties to the contract by mutual agreement. If only one party breaks the contract then it would be a breach of contract and could result in legal action.

[NinaS]

Yeah we did send it recorded. So they've no excuses! Thank you all for taking your time to answer.

[NinaS]

Hi everyone, does anyone have any information on this? Thank you?

[NinaS]

Is that the only form of right to rescind that there are? I only ask as the wording on the contract doesnt mention the other party. However if that is the case, Kia finance/AG finance, won't do it we've been back to court so many times asking to lower the payments and they wont' have it, even though they don't even turn up

[NinaS]

This is what it says in the agreement. Word for word." if any of the above statements is untrue, (whether I/we are aware or not) you shall at your option either to rescind the sale of the goods to you or require me/us to make repayment to you in accordance with 3.2.3 below or to require me/ us to indemnify you against all losses suffered by you by reason of such untrue statements.3.2.3 you shall be entitled to rescind the sale (if made) of the goods to you and I/we shall upon your request make payments to you of all amounts paid to me/ us by you (including any commission) in respect of the agreement or, where all or any of these amounts have been credited but not paid you shall be entitled to debit out relevant accounts with such amounts.That's what the agreements says.The agreement, amongst other things, says we have a KIA sportage diesel estate. What we actually have is a KIA sportage petrol hatchback. There are other things again on my post in vehicle repossesions, you would be able to see them. Thank you for taking time to answer.

[Conniff]

If you took out an agreement and gave misinformation in order to get that agreement, then it can be recinded or cancelled.

 

And the same thing works the other way around. If they have said something to entice you into that agreement which proves to be not true, you can recind or cancel the agreement.

[NinaS]

Thank you, they did do that, we thought we were getting a 0% finance deal. Which we didn't it ended up being 2% we did question it on the day but were given waffle to explain it which seemed to make sense at the time, but later on furthur thought it didn't. However we would never be able to prove this. But this wasn't the only wrong thing. The rest is in black and white. They have tried to reposses the car but the baliff refused to enforce the warrant because the car on the warrant wasn't what we have?

[Conniff]

So it is on Hire Purchase ? and you have missed payments ?

[NinaS]

Yeah it is. Hang on i'll pot you the link to my other thread.

[NinaS]

This is the whole story I hope. http://www.consumeractiongroup.co.uk/forum/showthread.php?372500-please-help.&p=4052569&highlight=#post4052569

[NinaS]

Yes that's it. Scroll to the top. It's a long one though. Thank you.

[NinaS]

Just thought if any of you had been reading this or we're about to give some advice, I'd give you an update.

 

Dh phoned the finance company today,

 

they have recieved the letter and sent us out a response.

 

But they are saying our right to rescind means nothing because we have already broken the contract by not making the Payments.

 

But do they not realise if We'd have known about our right to rescind before hand it would never have gone this far?

 

Again, need some advice!! Please please help!

[NinaS]

Just thought I'd post an update. Dh called ag finance today. They said they have recieved our letter, but as we have defaulted on payments the contract was already broken so our right to rescind means nothing. Anyone know if they are correct?