Clinch/Blackhorse Finance Advice for now unaffordable car please - want to VT

[Billy Bremner]

I hope someone can offer advice.

Asking on behalf of my daughter who has mental health issues and can't cope with this sort of thing.

Thanks in advance.

My daughter, who is on benefits due to quite severe mental health problems, purchased a car through Cinch. I think it was between £8,000 and £10,000.

I appreciate it's probably not their business to check on affordability, but at the time I thought it ridiculous she could buy such an expensive car while on benefits. This happened about a year ago I think.

Fast forward to now and as she has moved out of my house, where she lived free, and moved into a privately rented place she can no longer afford to pay for it. These things happen and I'm certainly not blaming anybody.

I just want to be able to help her out of the situation with as little drama as possible 

I was thinking maybe best just to let them repossess the car ,which I guess they will do eventually ,or inform them of the situation to speed up the repossession.

Then apply for something like a DRO to deal with the finance shortfall which I think will be a considerable amount as the car is not in a good way.

I would be really grateful for the opinions and suggestions of the kind and helpful people I know use and run this site.

Many thanks,

Billy.

[lolerz]

It is absolutely cinch's business to check on affordability. If they haven't and you can prove that they have given credit to someone they know couldn't afford it at the time then that would be irresponsible lending.

Naturally this doesn't apply if they could afford it at the time and now can't (cinch aren't fortune tellers)

Don't do anything yet!

How long have they had the car and how long is the finance? Who is the finance company?

[Billy Bremner]

Thanks for replying Lolerz.

She has done nothing as yet apart from being unable to pay the last payment or two.

I believe the finance is with Black Horse.

She has had the car about a year and the finance has about 3 years or slightly less to run with an option at the end to return the car or pay a large payment to keep it.

Thanks

 

[dx100uk]

so PCP agreement with blackhorse i will guess?

if she has not paid to the 1/3rd mark (see back of agreement for the figure) then the goods are not protected under the consumer credit act.

DO NOT HAND THE CAR BACK OR LET THEM TAKE IT!! it will cost you dear!! 

where is the car parked, on private land or a driveway? if not get it parked there ASAP and NOT ON A PUBLIC ROAD. (they can simply snatch it once they issue a default notice)

you could start an unaffordable lending claim against CLINCH

Irresponsible lending (IRL) PDL Reclaim Guide - Indepth Step By Step - PayDay loans and Short Term loans - General - Consumer Action Group

if its works everything might be rolled back and cost nothing other than handing the car over but let's see. 

was she on benefits before the move out only too? was her file shot with defaults and lots of outstanding lending when she got the car?

DO NOT do a DRO if you can poss avoid it. as it wont only be for the car finance but all her debts and that turns unsecured debt into a legally binding order. not a good idea. esp as she is renting, they wont like that on her file.

if the IRL  fails then best bet is to do a Voluntary Termination ONLY , she must instigate that NOT let Clinch do a Voluntary Surrender!

VT costs only to the 50% mark.

VS cost the 100% loan amount minus what they get reselling the car.

let us know your thoughts now please

dx

 

 

[Billy Bremner]

Thanks dx.

She has never looked at her credit file so I am going to try and help her do it tomorrow.

Pretty sure she hasn't reached the one third mark but I'll check with her tomorrow.

I just read the unaffordable lending thing and didn't really understand it.

I do know it mentions a Voluntary Termination is available in her paperwork.

The car is on a public road but I could get her to move it to my drive if this helps.

She was on benefits while she lived at mine too.

She only really had money for the car because I let her stay for free.

Many thanks for getting back to me. I'll try to find out more tomorrow

Regards

Billy

[dx100uk]

IRL is a complaint the finance was mis sold because they might not have done any credit checks on her, which under lending laws they must.

dx

 

[Billy Bremner]

Thanks dx.

I'll try to get more details and see what can be done to help her'

Really appreciate your help.

Billy

 

[Billy Bremner]

I have now seen her credit file. It only really shows the car loan and the car insurance.

I guess this means she can't claim they didn't do affordability checks so what would be advice as to her next step?

Thanks in advance

Billy

[dx100uk]

ok

well BH aren't known for being nasty etc, they are lloyd a mainstream bank. not like moneybarn motonova etc etc. that can be very nasty.

does she want to keep the car?
but its just going to be if truthful there is no chance of being able to pay for it realistically going forward and ofcourse use = running costs too?

the cheapest option here is going to be VT (has to write) whereby she will only owe to the 50% mark detailed on the back of their agreement. and as its BH i suspect once that is done and dusted , will most probably be persuaded to accept even lower payments.

your thoughts

dx

 

 

[Billy Bremner]

Thanks for replying dx.

No she doesn't want to keep the car. It's cost and other running costs are impossible for her now . I just want to get the situation settled with the least amount of stress for her because of her mental health. 

Cheers,

Billy

[dx100uk]

voluntary termination then.

have a read of this thread CAREFULLY

everything is there in good detail.

MoneyBarn - Voluntary Termination - Moneybarn Issues - Consumer Action Group

thread title updated and moved to the Blackhorse forum

dx

[Billy Bremner]

Thanks so much dx. I really am grateful for your advice

Billy

 

[dx100uk]

let us know

dx