Tweet
Finance company terminate agreement but report car stolen
Hi
Son purchased a car on finance May 2022.
Everything going ok until April this year when the car developed yet another fault and ended up off the road resulting in him losing his job as couldn't get there.
End of April son went self employed but missed May's payment. A default notice was sent giving 14 days to pay. Son missed the payment date (27th June) as hadn't received any income yet. The day after the payment was due a termination notice was sent, by the time he got the termination notice he owed 2 months payments.
We contacted the finance company and explained he was waiting for money to come in and the outstanding amount would be paid within the week.
The very unhelpful woman on the phone said she couldn't make a payment arrangement unless she could have access to his bank account via open banking to see if he was telling the truth !
I said I would ask son and call her the next day.
Son said no to open banking but was happy to provide a copy of his bank account statement. Woman refused bank account statement and then said there would be £300 costs added as a repossession fee and he now needed to pay the 2 outstanding payments plus the £300 or the termination notice stood.
I requested a copy of the credit agreement and an up to date statement and requested she put a hold on everything until I had been through the documents, to which she agreed .After going through it all i found that he had paid more than one third already and the finance company would need a court order to repossess the car.
Next day he had text message from vehicle collection agents requesting a time to collect the car.
Following that son made the missing payments but finance company still instructed collection agents to repossess the vehicle.
I contacted repossession agents to inform them the company did not have a court order nor did son voluntary surrender the car. Repo agents ceased contact.
Various emails to company informing them of their mistakes and refusing to pay the £300. Emails from company then ceased.
Then yet another 'default notice' and termination notice for August payment. Payment wasn't made as finance company hadn't reduced the balance owing by the 2 payments made in June only one had been taken off.
Phone call to finance company asking them to deduct the payment they hadn't done to be told it had been deducted and the balance owing was due to £300 they had added for the repossession agent (who didn't and couldn't legally collect the car)
Yet another termination notice (in Sept) via email this time stating they were going to apply for a court order. By this point son had had enough and was preparing to go to court but payment had been made.
Finance company used the payment made in September for August's payment so in effect owed one payment for September.
Balance owing still not corrected .
Yet another 'default notice' in October for September payment and another email stating they had terminated the agreement and would be getting a court order.
Son decided this was probably the best way so was waiting for the court papers to arrive but then got a phone call from the police telling him the finance company had reported the car stolen.
Told the police it isn't stolen, son has possession of it and it's at the address on the credit agreement and that we were waiting for court papers from the finance company for them to attempt to repossess it . We provided police with all the documentation but then had a response that the investigation was closed but the car would remain on the database as stolen. The finance company are using the police to repossess the car rather than going through the courts.
Apologies for the long post ..... Help & ideas for a way forward as the police won't take it off the database as stolen and the finance company haven't filed court papers.
Son can't drive the car without the risk of getting arrested and the car being returned to the finance company but the finance company won't get the car if he doesn't get stopped in it.
Son purchased a car on finance May 2022.
Everything going ok until April this year when the car developed yet another fault and ended up off the road resulting in him losing his job as couldn't get there.
End of April son went self employed but missed May's payment. A default notice was sent giving 14 days to pay. Son missed the payment date (27th June) as hadn't received any income yet. The day after the payment was due a termination notice was sent, by the time he got the termination notice he owed 2 months payments.
We contacted the finance company and explained he was waiting for money to come in and the outstanding amount would be paid within the week.
The very unhelpful woman on the phone said she couldn't make a payment arrangement unless she could have access to his bank account via open banking to see if he was telling the truth !
I said I would ask son and call her the next day.
Son said no to open banking but was happy to provide a copy of his bank account statement. Woman refused bank account statement and then said there would be £300 costs added as a repossession fee and he now needed to pay the 2 outstanding payments plus the £300 or the termination notice stood.
I requested a copy of the credit agreement and an up to date statement and requested she put a hold on everything until I had been through the documents, to which she agreed .After going through it all i found that he had paid more than one third already and the finance company would need a court order to repossess the car.
Next day he had text message from vehicle collection agents requesting a time to collect the car.
Following that son made the missing payments but finance company still instructed collection agents to repossess the vehicle.
I contacted repossession agents to inform them the company did not have a court order nor did son voluntary surrender the car. Repo agents ceased contact.
Various emails to company informing them of their mistakes and refusing to pay the £300. Emails from company then ceased.
Then yet another 'default notice' and termination notice for August payment. Payment wasn't made as finance company hadn't reduced the balance owing by the 2 payments made in June only one had been taken off.
Phone call to finance company asking them to deduct the payment they hadn't done to be told it had been deducted and the balance owing was due to £300 they had added for the repossession agent (who didn't and couldn't legally collect the car)
Yet another termination notice (in Sept) via email this time stating they were going to apply for a court order. By this point son had had enough and was preparing to go to court but payment had been made.
Finance company used the payment made in September for August's payment so in effect owed one payment for September.
Balance owing still not corrected .
Yet another 'default notice' in October for September payment and another email stating they had terminated the agreement and would be getting a court order.
Son decided this was probably the best way so was waiting for the court papers to arrive but then got a phone call from the police telling him the finance company had reported the car stolen.
Told the police it isn't stolen, son has possession of it and it's at the address on the credit agreement and that we were waiting for court papers from the finance company for them to attempt to repossess it . We provided police with all the documentation but then had a response that the investigation was closed but the car would remain on the database as stolen. The finance company are using the police to repossess the car rather than going through the courts.
Apologies for the long post ..... Help & ideas for a way forward as the police won't take it off the database as stolen and the finance company haven't filed court papers.
Son can't drive the car without the risk of getting arrested and the car being returned to the finance company but the finance company won't get the car if he doesn't get stopped in it.
Comment