Moneybarn/Moorcroft who are now chasing outstanding balance of a VT

[CCJHell]

My husband was self employed and lost all the work at the start of the covid lockdowns so I could no longer afford repayments on my car. I was 1 year into a 4 year agreement with Moneybarn. 

 

I purchased the car for £7800 and put hardly any miles on it in the year that I owned it. I made all the payments for the correct amount and got a valuation of the vehicle to see if I could sell the car to pay off the finance. 
 

The car was worth £6900 from we buy any car.

 

I asked Moneybarn for an early settlement figure got a settlement figure of £9307 after a year of payments. I queried this as the payments were broken down as interest + principle each month so I didnt understand how I could owe more than I paid for the car since I had already paid around £4k over the year that I owned the car. They just said thats the figure and wouldn't get into it.

 

I asked them for permission to sell the car and use it towards the balance for half the agreement and come to a payment arrangement for the rest. They refused. 

 

I voluntary terminated the vehicle even though I wasnt half way through the agreement. I didn't want the hassle of debt collectors turning up and going to court etc (which I am now dealing with anyway) and it was announced a couple of weeks after I handed my car back that no action could be taken during the pandemic. 

 

Now I have letters from Moorcroft demanding that I pay £7500 for this car.

 

How is this legal?

I paid £4K off a car that cost £8k.

They have the car, now worth £7k

now they want another £7k off me.

 

I honestly thought that I was going to be able to pay off the car in year one. If my husband hadn't have lost his job I would have been able to.

 

I hate that I have been so stupid.

If I get a CCJ it will cost me my job.

 

 

There is no way I can pay another £7k.

Have I any right to any sort of recourse here?

Could I fight it in court or would the judge just side with them as I signed the agreement.   

[dx100uk]

slow down stop over thinking things...

 

i've moved you to the moneybarn 1000's of threads here to read.

 

moneybarn make up their own rules as they go along but once fronted soon backdown, they have been fined by various authorities numerous times for not treating people fairly.

 

1st moorcroft have NOT bought the debt, they don't buy debts only chase, so who is their stated client? i would expect Moneybarn so the debt has gone nowhere, and as you already know, you are safe to ignore ALL dca's as they are NOT BAILIFFS and have ZERO legal powers on ANY debt, no matter what it's type.

 

now you say you VT'd so you should only be poss liable to the 50% mark which will be clearly stated on the reverse of their agreements..

 

are you SURE you did VT via a VT letter, or got scammed by MB by letting them do it and in all truth it was a Voluntary Surrender, whereby you are liable for the whole balance??? looks like that to me.

 

dx

 

[CCJHell]

I checked and it is still Moneybarn. 

 

It was definitely a Voluntary Termination too. The total payable under the agreement over 4 years was £19906. 

 

Whats making me angry is that if they would have let me sell the car than the total amount outstanding from their early settlement figure would be about £600 after what I offered to pay on top.

 

But now they get to keep the car and still chase me for the £7k. So they are getting the whole agreements worth of money anyway. 

 

This is what I mean, I've been an idiot. I've basically given them £7k and still owe half the agreement. 

[just_jue]

 I have VT'd a car a couple of time before.

 

The figure your are liable is 50% of the car. The payments towards this includes any deposit - part exchange you laid down at the time of purchase.

 

But the 50% would not cover and warranty, gap insurance etc that was taken out.

 

They must of given you a breakdown of all the cost etc.

 

DX is brilliant with advice on them

Edited July 16, 2021 by just_jue

[dx100uk]

If the agreement was £20k then under VT you owe £10k.

The car is not yours to sell anyway, you never own it until/if you settle the full hp sum.

 

 

[CCJHell]

Yeah £10K minus what I paid. 

 

If they agreed to let me sell the car to action the settlement offer I would have owed £600. 

 

They refused so now I owe £7k.

[just_jue]

Did you take an insurance or warranties out as this will change the figure.

 

The 50% figure would be for the car minus any part ex or deposit paid.

 

If you payments each month would be £200 as example with insurances you might only be paying £160 off the car and £40 off the add on's.

 

Have they sent you a breakdown of the figures?