Car Finance agreement - Court Papers Received HELP!

[ajk1211]

Hoping for a bit of advice here please, as i am really worried about the stupid mess i have got myself into regarding my car finance agreement with Moneyway
In short, usual story, missed a few payments due to my financial malpractice and have wound up receiving court papers for 4 months worth of arrears totalling just over £800.
I have been in constant contact with the finance company and advised them of the situation and offered to increase my monthly contractual payment as a means of reducing the arrears. However, the usual process of warnings, default notice and notice of termination have ensued leading to the court papers being received this morning. They have sent someone round from a 3^rd party to discuss this previously but i was out and the representative left a very embarrassing calling card which was seen by my housemate, but i will be persuing that with the ICO separately!
I have actually just sent a letter in regards matters on this account with an enclosed cheque that would cover 2 months worth of payments a few days prior to receiving the court papers so i am intrigued as to where i stand as this would reduce the arrears to £600 and by increasing my monthly payments i could clear this by the end of the year
I am obviously very worried about this scenario as the car is essential to my ability to get to work and whilst i know this is all my fault, i have been upfront with the company (via letter despite their requests for telephone conversation) and am petrified of going to court and suffering the embarrassment of friends/family asking why i have no car now! My credit rating will be so bad that i dont think acquiring a new one would be easy!
The original agreement was for £12096 and i have so far paid just over half (there are some charges in there that have been levied for missed direct debits/processing charges for around £100) so i know this is why the court order is needed in order to repossess the car
However, what can i do as they are requesting arrears + return of the car OR payment of the full amount outstanding (£6000 when the car is probably worth £2000) and interest/court costs
Any advice would be much appreciated

[ncf355]

Re: Car Finance agreement - Court Papers Received HELP!

Have they cashed your cheque yet?

If not you need to offer this again via recorded post

You need to be able to demonstrate at court that you have attempted to put things right

Any reasonable court should accept a payment plan if you can show that you can afford this via an expenditure planner, it will then be a case of the repo will be delayed as long as you keep up the agreed payments, miss one and they get to seize it

[ncf355]

Re: Car Finance agreement - Court Papers Received HELP!

When was the agreement taken out?

Do you have a copy?

[Guest]

Re: Car Finance agreement - Court Papers Received HELP!

You have just paid half yet the car is only worth £2000, this would have been an ideal candidate for a VT, however from what you say that particular boat has sailed.

I take it this was a HP agreement, was the default notice served correctly, 14 clear days to pay before termination, default sums correct etc.

[ajk1211]

Re: Car Finance agreement - Court Papers Received HELP!

Thanks for the timely replies folks, appreciated
To take each point raised in turn:
No the cheque hasn’t been cashed but they would only have received the letter containing the cheque on Monday, assume a few days to process etc. Should i resend to the finance company or to the solicitor referenced on the court claim?
Agreement was taken out in 2010 and yes i have all the Ts and Cs which i can provide (scanner at work thankfully!)
Totally correct about the VT and it was something i pondered, i just didn’t think i would be able to get a new car due to my credit rating. I think the protocol followed regarding the default etc is correct unfortunately
As a side issue, i have been charged £217 in assorted charges (direct debit and recent collection activity) that could possibly be utilised. Also, i have previously complained regarding a non-enveloped calling card from a 3^rd party being posted to my house who had been assigned by Moneyway which left me very embarrassed with my landlord. May follow these up to flag up their malpractive even though i acknowledge the fault for this lies with me

[Guest]

Re: Car Finance agreement - Court Papers Received HELP!

Thanks for the timely replies folks, appreciated
To take each point raised in turn:
No the cheque hasn’t been cashed but they would only have received the letter containing the cheque on Monday, assume a few days to process etc. Should i resend to the finance company or to the solicitor referenced on the court claim?
Agreement was taken out in 2010 and yes i have all the Ts and Cs which i can provide (scanner at work thankfully!)
Totally correct about the VT and it was something i pondered, i just didn’t think i would be able to get a new car due to my credit rating. I think the protocol followed regarding the default etc is correct unfortunately
As a side issue, i have been charged £217 in assorted charges (direct debit and recent collection activity) that could possibly be utilised. Also, i have previously complained regarding a non-enveloped calling card from a 3^rd party being posted to my house who had been assigned by Moneyway which left me very embarrassed with my landlord. May follow these up to flag up their malpractive even though i acknowledge the fault for this lies with me

Have you considered a time order ?

[ajk1211]

Re: Car Finance agreement - Court Papers Received HELP!

I have heard of these, is it basically whereby a court grants you more time to pay?

Well that would be helpful providing it is not excessive per month

There was no provision for this in the paperwork received however, just seems i have to show up at court on the alloted date/time with so far no prior opportunity to register my side of the story

[Guest]

Re: Car Finance agreement - Court Papers Received HELP!

[QUOTE=ajk1211;361784]I have heard of these, is it basically whereby a court grants you more time to pay?

Well that would be helpful providing it is not excessive per month

There was no provision for this in the paperwork received however, just seems i have to show up at court on the alloted date/time with so far no prior opportunity to register my side of the story[/QUOTT]

There should have been mention of this on your default notice as there should have been your VT rights but have a look here

http://www.nationaldebtline.co.uk/en...edit_agreement

[Enom]

Re: Car Finance agreement - Court Papers Received HELP!

I faced the very same issue a while ago, although rather than missed payments, it was the balloon payment at the very end of the HP agreement I was unable to afford. I had offered monthly repayment amounts, but this was ignored and they put in a claim asking for the vehicle and money, I submitted a defence advising I had offered to pay monthly and received no response and copied the letter and offer I had sent previously in my defence, the court ordered that the claimant review my offer and placed the case on hold until 2 months later and if it were not continued it would be struck out. After further negotiation, they eventually put in a tomlin order for a very affordable monthly amount over 5 years after many negotiations and have stuck to it since. As they've advised above, so long as you are showing to the court you're attempting to resolve the issue the best you can, they usually are more favourable to the defendant than the claimant who jumped the gun demanding someone's vehicle and money without considering any offer!

[ajk1211]

Re: Car Finance agreement - Court Papers Received HELP!

Thanks for your replies Andy58 and Enom

Looking at my court papers there really does not appear to be any scope to offer a reply so guess filling in one of those forms and sending back to the court is appropriate?

Still no cashing of the cheque i sent previously so a bit confused what to do now?

Thanks for your story Enom as it sounds really similar to what i have been doing and it is heartening to know that the court take such viewpoints. Very frustrating as i know i have messed up here and am trying to rectify it but the finance company just want to be difficult!

[labman]

Re: Car Finance agreement - Court Papers Received HELP!

To be fair to the finance company (and I am on your side here!), they did everything properly. I know that doesn't help you, but it explains their stance a bit. I deal with peoples' debts day in, day out, and one thing the companies nearly always say is they were given every chance to come to an arrangement.

We still usually end up getting one though! :beagle:

[ajk1211]

Re: Car Finance agreement - Court Papers Received HELP!

To be fair to the finance company (and I am on your side here!), they did everything properly. I know that doesn't help you, but it explains their stance a bit. I deal with peoples' debts day in, day out, and one thing the companies nearly always say is they were given every chance to come to an arrangement.

We still usually end up getting one though! :beagle:

Appreciate your viewpoint but my very first written correspondence on this matter offered a repayment plan which they ignored and insisted i called them to discuss (not going to happen)
I have reiterated this on numerous occassions and the sending of an agent to my home address to "recover the vehicle" is certainly not proper behaviour in my opinion

They have cashed the cheque for £403.20 i sent them so do not appear that staunch in refusing to deal with me!

[labman]

Re: Car Finance agreement - Court Papers Received HELP!

So the job is to show the court you're willing and able to pay arrears asap and sustain other repayments for the duration of the loan, and the finance company as being unreasonable in declining your offers.

The main question I would have, given what you've said above about your financial malpractice, is when you complete a comprehensive CFS compliant Income and Expenditure form, would it show your disposable income as sufficient (given the other issues you've admitted to being on there as well) to service your proposed repayments?

[ajk1211]

Re: Car Finance agreement - Court Papers Received HELP!

So the job is to show the court you're willing and able to pay arrears asap and sustain other repayments for the duration of the loan, and the finance company as being unreasonable in declining your offers.

The main question I would have, given what you've said above about your financial malpractice, is when you complete a comprehensive CFS compliant Income and Expenditure form, would it show your disposable income as sufficient (given the other issues you've admitted to being on there as well) to service your proposed repayments?

Hopefully the issuing of the cheque which has been cashed and my aforementioned willingness to enter a repayment plan should be viewed as willingness to pay the arrears

Forgive my lack of knowledge but can you elaborate on the "CFS compliant I&E form" please?
I havent been asked to complete such a document on my court papers and have indeed not been asked for any form of evidence prior to my court date so am confused how best to proceed here

I can confirm i am happy to pay the original contract amount + 25% of this value extra as a means to pay the arrears, an additional amount providing its affordable

[labman]

Re: Car Finance agreement - Court Papers Received HELP!

Sorry - CFS stands for Common Financial Statement:

http://www.moneyadvicetrust.org/section.asp?sid=14

CFS compliant is an Income and Expenditure sheet which is viewed in the same light as the CFS by creditors and courts (who use something almost identical). If you have one of these showing you can afford and sustain the proposed repayments in the long term, I can't imagine the court being overly impressed with the finance company rejecting your offer.