Mobile money log book loan help

[pandipie]

I just wanted some advice on where I stand

I've had a log book loan for some time and never missed a payment. We are currently in the position where we are struggling to pay. The car itself has died a death and has been scrapped so there is not a car to repossess. I would like to reduce the amount we are paying but mobile money have refused. Am I best just stoping payments or what other options do I have?

[ericsbrother]

As it is now an unsecured loan you would be wise to tell them that you are reducing the payments to a niminal £1 a month (or whatever you can sensibly afford). If they then with to go to court to enforce judgement they will have a tough time persuading a judge to do so as you have made the offer. They should also consider freezing the interest accruing on the outstanding sum.

Go to the debt section on CAG for more advice

[citizenB]

I have moved this thread to the Debt forums.

 

As advised above, if the vehicle has been scrapped then there is nothing the debt is secured on.

 

If this were me, I would simply send a letter to them advising that your personal circumstances have changed considerable for the worse. That you are no longer able to main the contractual payments.

 

That as the vehicle has now been scrapped there is no longer an asset for them to repossess. You are however committed to repaying your loan.

 

That you are only able to make payments of £x per month. On the basis that they cease adding charges as there is little point in your making token or reduced payments only to see the debt increase.

 

There is a letter in the CAG library that you can amend to suit your circumstances.

[pandipie]

I just wanted to update my situation incase it can help anyone else.

 

I took out a log book loan for £2400 in October 2012 this month (July 2013) my work dropped so I could not afford the repayments. The car also broke down and we had been told it was terminal.

I got in touch with mobile money via email on the 16/07/2013 stating that I could not afford the monthly repayments but could pay off the balance of £2178 in October but needed a payment break until then. They refused this.

I also told them that the car was due to be scrapped.

They quickly responded that he car was legally theirs and they must dispose of it. I asked if I surrendered the vehicle to them would it be in full and final settlement. They initially said yes.

However this morning I contacted them again via email ( I refused to speak to them on the phone as I wanted a paper trail of proof regarding what they said) and they stated that in order to surrender the vehicle I must bring it to their office. So at this point I quoted bAck to them the email where they stated that they would collect, and dispose of the vehicle in full and final settlement. At this point they then said that they would collect the car but I needed to come to the office to sign paper work. I refuses. I pointed out to them that email is as legally binding as paper documents so requested that the email me the paper work so I could sign and email back.

They reluctantly did so.

It took a lot of arguing via email to get to this point but I got there!! We are now free of mobile money!!

[citizenB]

 

We are now free of mobile money!!

 

This is excellent news

[Peterbard]

Purely for my knowledge, could you post up if they do actually come and collect the car as agreed, or whether you end up scrapping it please?

 

A good result, and well done for standing your ground.