Car sold at auction for a profit, where do I stand?

[ScotlandGuy35]

Hi Folks,

 

Long story short but I missed 3 payments on my car (I lost my job) the agreement with the finance company was terminated and they wanted the balance in full (I couldn't afford to pay it in full).

 

The car was repossessed (I agreed to this and met them to take it away).

 

The car went to auction and sold for more than £10k than what the outstanding debt/balance was.

 

How do i stand with this?

 

The company are saying that they are entitled to keep all the money even though they have been overpaid by over £10k on the figures they sent me via their solicitor and the court letters before the car went to auction.

 

To add they didn't even tell me what auction it was going too and I've never had any more mail saying how much it sold for (this was 5 weeks ago).

 

Any help would be great.

[Conniff]

Can you give us some dates ie when bought how many payments was agreed and how many payments you made ?

 

 

Finance companies are not allowed to make a profit from repossession. If the car sold for less, you would still be liable to make up the shortfall,

You are liable for any missed payments however.

 

 

What documentation do you have, or can you get, for your claim of profit ?

 

 

What type of finance was it, HP or Car Loan ?

Edited June 15, 2015 by Conniff

[ScotlandGuy35]

Thanks for the reply.

 

The car was a £73k car and £63k was financed.

 

The balance due at the time of repossession was £45k plus some fees.

 

The car sold at Auction for £61k.

 

They didn't tell me which auction it was going too not have they ever sent me anything since it sold, I only know as I found out where it was and attended the auction myself to see what it made.

 

They are at least £10k in profit to what I was due them.

 

I have spoke to their solicitor and his answer was that because the company ended the finance agreement and sold the car that they are entitled to the extra money.

 

New to all this but £10k+ is quite a bit of money.

 

The car was bought when I was in a good job and self employed, that is no longer the case and the £10k would make a huge difference to me these days.

[ScotlandGuy35]

Just to add it was via ING lease on a PCP finance.

 

The car was on a 4 year finance and 20 months worth of payments had been made.

[Conniff]

What type of finance ?

[ScotlandGuy35]

It was PCP, 4 years with a final payment at the end.

[Conniff]

Ah, PCP is different. With a PCP you are only paying the depreciation and that is what the finance is worked out at, not the true value of the car. If the car is in negative equity at the end of the term, the finance company take the hit not the customer, so without actually seeing any regulation on it, my guess is that as the car belongs to the finance company, the reverse would also be true.

 

 

It is regulated under the Consumer Credit Act 1974 and the Financial Services Regulations 2004 so that would be worth a read.

[ReasonableRon]

At £63k borrowed, it won't be regulated by the CCA.

[Conniff]

I think that limit was removed in 2006

[ReasonableRon]

I think that limit was removed in 2006

 

If you are referring to the old £25k limit then this was indeed removed in 2011 as part of the Consumer Credit Directive, and replaced with a limit of £60,260 (which was at the time the sterling equivalent of the standardised European limit of 75,000 Euros.

[Conniff]

Thanks RR.

[unclebulgaria67]

I suppose the argument was that you never owned the car at the time it was repossessed.