Moneybarn issued default 3 years late while on DAS

[jamezon]

In January 2020 I entered into a DAS (Debt Arrangement Scheme), of which Moneybarn were one of the creditors (1 month's arrears).

So they have received ~40 consecutive payments monthly per the DAS for the relevant portion of the arrears.

 

I made the last of my scheduled payments recently (monthly conditional sale/HP payment).

 

Today I received a default notice from MB, implying they will take me to court/ attempt to repo the vehicle for less than 1 month's arrears, less than 2% of the overall finance bill.

 

In the letter, they quote a clause 8.1.6, "the right to terminate (if in Scotland) if you become insolvent or suffer sequestration or a receiver, judicial factor or trustee to be appointed over any of your estate", as the "provision of agreement breached".

 

However the nature of breach is, "You entered into a DAS...approved on 11 January 2020."

 

So, three things,

1) I do not regard a DAS as being a breach, it doesn't conflict with any of the processes listed as far as I am aware.

2) It is in excess of 3years since the DAS started.

3) Surely any Default Notice would need to be backdated to the initial date of the DAS, as nothing has materially changed since.

 

They go onto say that I, "cannot take any action to remedy this breach of the agreement" and need to pay the full arrears amount by 11th April 2023.

 

Is it legitimate for them to issue a default notice, essentially out of spite as they need to wait longer for their arrears?

The other issue is the net value they will receive of the arrears is actually less under the DAS due to fees.

Say I owed £500 arrears, by the time fees were deducted and they would only receive £400.

 

I am in a bit of a bind as under the terms of the DAS I cannot overpay a single creditor but MB seem content to disregard the fact that the DAS has been in place (without their dissent) for some time but simultaneously use it as an excuse to attempt enforcement action?

 

Many thanks.

 

[dx100uk]

as usual MB haven't a clue what they are talking about and make up their own rules as they go along.

 

all debts in a DAS much be defaulted on or before the date you start the DAS.

 

dx

[jamezon]

Worryingly it has just come to light that my finance is a conditional sale agreement.  The advice I am now receiving (from the debt charity) is that this should not have been in the DAS at all (they insisted it was included at the time)?  Going from bad to worse.

 

Any ideas what next?

 

Edit: only the arrears were in DAS.

[dx100uk]

doesn't matter - the arrears are what caused the DN.

it should still be defaulted upon the entering of any form a legal formal scheme AFAIK.

 

 

[jamezon]

I take it Moneybarn just have to wait to get their arrears through the DAS? And they can't take any other kind of enforcement action?

[dx100uk]

you've paid more than 1/3rd the goods are now protected.

 

they would have to go to court to get a return of goods order or whatever the equiv is in scotland.

 

if they take the car without one.

then they have voided the agreement and can take them to court yourself - you'll get all your moneyback + keep the car or get trade value today for it.

 

 

 

 

[jamezon]

Just a minor update, contacted the money adviser and the extent of their advice was  to ignore it. 

Not sure that fills me with confidence- would rather they consulted with the creditor rather than leaving me sitting waiting for a possible chap at the door or court summons.

[dx100uk]

not sure why you think you'd get some powerless guy with a flatbed or whomever at your door?

and any dca are not bailiffs and have zero legal powers on any debt.

zero powers ... film them, dont engage,, leave my property else i'll call police 101.

 

quite correct advise...dont poke the bear!!

 

dx

 

 

[jamezon]

It has happened before with another firm, that's why I think it!

[dx100uk]

and you got had! scammed, taken for a fool....believed the crap you read or they stated at the time...

 

dx

 

 

[jamezon]

Ummm....cheers?

[dx100uk]

was this:

which you never bothered to update us on?

 

 

[jamezon]

No it wasn't that. Although that example goes to show how certain finance companies like to operate. From memory the FOS upheld our complaint but were unable to overturn the default as it had been legitimately issued. The debt was ultimately settled and that particular vehicle was traded in due to a faulty Aircon pump.