Car Finance Deficit - Almost 6 years ago.

[exa3z]

Hi,

Looking for some advice here, apologies if I've posted this in the wrong section of the forum.

Approximately 6 years ago I bought a car from a common "car warehouse" on credit.

Almost immediately (4 or 5 months) after I hit big financial difficulties. I contacted the creditor telling them that I wish to hand the car back as I could not afford the payments. Due to all the panic happening at the time with being unable to pay other creditors aswell the monthly payments just ceased.

The car was repossessed (without a court order, as I instructed them to repossess the car as I could not afford the payments any longer).

Shortly afterwards I got a statement off the finance company detailing that the car was sold at auction and that I was liable for the balance including interest under the original agreement. I sent a letter arguing that the car was not sold using "due diligence" or word to that effect, the vehicle was worth £5000 if I sold it privately, at auction it fetched a measely £1500 or thereabouts.

After this I heard nothing, for over 5 years, until now (funnily enough it's right before the 6 year time limit).

They are claiming that I owe them what I owed them at the start, but with interest that has been accumulating over the last 5 years. The balance is now well over double what it was.

All correspondance I sent to them 5 years+ ago was ignored, and I have had nothing off them during this time period, no statements, nothing!

They are threatening court action to recover the balance, which I cant pay as I'm only just getting back on my feet.

Any advice would be greatly appreciated.

Thanks.

[exa3z]

Re: Car Finance Deficit - Almost 6 years ago.

Bump ?

[Guest]

Re: Car Finance Deficit - Almost 6 years ago.

Do you have the financial details.

How much was the car when you bought it.(cash price)

How much did you pay including deposit trade in up until it went back.

What was the totlal amount payable under the contract (repayments multiplied by the number of)

APR

[exa3z]

Re: Car Finance Deficit - Almost 6 years ago.

Do you have the financial details.

How much was the car when you bought it.(cash price)

How much did you pay including deposit trade in up until it went back.

What was the totlal amount payable under the contract (repayments multiplied by the number of)

APR

Hi,

Sorry for the delay in replying.

I have had court papers through yesterday. The particulars of claim reads:-

The claim is for the sum of £9303.05 being the sum due from the defendant upon termination of regulated hire purchase agreement number ##### dated 28.01.08 (signed at Ucan Car Credit) for a ##### with registration number #####. The agreement was terminated on 07.07.08 due to the defendant failure to maintain the contractual payments. The total amount payable was £12068.20 less £891.88 paid by the defendant inc deposit. The vehicle was sold on 06.02.09 for £1807.97 net of recovery and auction costs plus the claimant's charges of £25 and less the option to purchase fee of £90 thus the amount claimed due and unpaid is £9303.35.

The claimant claims interest under section 69 of the County Courts Act 1984 at the rate of 8% a year from 07/07/2008 to 01/07/2014 on £9303.35 and also interest at the same rate up to the date of judgment or earlier payment at a daily rate of £2.04.

I am unsure if I voluntarily terminated the agreement. There was a LOT of financial things going on at the time, and I think I just stopped paying the monthly amounts. I do remember giving my consent to the creditor to come and collect the car, whether that is voluntary termination or not then I am unsure.

Also shortly afterwards when the car was sold I received 1 letter claiming that I owe the above amount after sale etc.

After this I have received NOTHING off the creditor, no phone calls, no monthly statements, no correspondance. To the point that I'd actually forgotten about the debt until the letter threatening court action arrived recently. Why have they taken so long to start proceedings ?

Do I have some kind of defence based on this ?

I cannot find any of the original paperwork, I would have to request them off the creditor ?

I have 14 days to respond to the court papers, or 28 if i extend it.

Any advice would be greatly appreciated.

Thanks.

[ironman]

Re: Car Finance Deficit - Almost 6 years ago.

who is the claimant,
when was the last payment made towards this account
ucan were the broker, not the creditor, they were simply a middleman for various finance companies

[exa3z]

Re: Car Finance Deficit - Almost 6 years ago.

who is the claimant,
when was the last payment made towards this account

The claimant is March Finance via Abacus Solicitors.

Unsure of the exact date of last payment, it would have been either 18/05/2008 or 18/06/2008 according to my personal spreadsheet, which ties in with the claimed termination date of 07/07/2008.

[ironman]

Re: Car Finance Deficit - Almost 6 years ago.

Then this will be astatute barred. It goes from the date of the last contractual missed repayment, not on the default date

Do you mean marsh and not march finance

what does your credit file say as to this account

[exa3z]

Re: Car Finance Deficit - Almost 6 years ago.

Then this will be astatute barred. It goes from the date of the last contractual missed repayment, not on the default date

what does your credit file say as to this account

Im not sure what my credit file says, I've not checked it for a while now. I've used the free trials such as Experian etc a while ago and they prevent me from viewing it again without paying. Is it worth checking my credit file ? I presume to find the date of last payment ? Or I could get it from my bank I suppose If i go in and ask them for a copy of statement from around this date.


Would Abacus still try it through the courts even if they know it's statue barred ?

[wales01man]

Re: Car Finance Deficit - Almost 6 years ago.

They would carry on with the case your defence would be that its Statute Barred but the pitfall for you using that defence alone is if they Prove its not the judge may grant the CCJ.
You need absolute proof and help from the Experts on this forum if that's not there to try and get this thrown out.

[Guest]

Re: Car Finance Deficit - Almost 6 years ago.

Hi

I would tick the defend all box and get the extension first of all, if you don't they will just get a default judgement.

So you just had the car six months, it seems to have lost lot o value in the period what was the purchase price ?

It seems v ery convenient that the termination date just puts them within the statute bar period of six years, you say you have no records of any correspondence ? I think we need to see the termination and default documents from them.

[Guest]

Re: Car Finance Deficit - Almost 6 years ago.

Yes I would send a request under CPR 31.14 for the termination notice credit agreement and statements of account, someone will be along with a template in a bit I am sure, also I would send a request for a copy of te agreement under section 79 of the consumer credit act, there is a template for this also, you can send this to the solicitor as well, some may say to send it to the creditor however i find that sending it to their representative makes them aware of the sanction for not sending a copy within the time scale(12 days, they cannot enforce)

[exa3z]

Re: Car Finance Deficit - Almost 6 years ago.

what does your credit file say as to this account

I cant see any record of this account on my credit file via https://www.noddle.co.uk/

They would carry on with the case your defence would be that its Statute Barred but the pitfall for you using that defence alone is if they Prove its not the judge may grant the CCJ.
You need absolute proof and help from the Experts on this forum if that's not there to try and get this thrown out.

I'm aware of this. My concern is why have they takes this long to action anything. And if they know it's statue barred and it would get thrown out why are they trying anything, it would cost them £500 court fee. Unless they're expecting me to do nothing and get a judgement anyway ?

Hi

I would tick the defend all box and get the extension first of all, if you don't they will just get a default judgement.

So you just had the car six months, it seems to have lost lot o value in the period what was the purchase price ?

It seems very convenient that the termination date just puts them within the statute bar period of six years, you say you have no records of any correspondence ? I think we need to see the termination and default documents from them.

Yes, It was a panic mode purchase. I need a car now, otherwise i cant get to work scenario. Then it all hit the fan. The purchase price was circa £7000.

I need clarification on this termination date/last payment date statue barred if possible. Your right that its RIGHT on the 6 year mark. It's funny why they've all of a sudden kicked into life now.

[Guest]

Re: Car Finance Deficit - Almost 6 years ago.

The statute bar date would run from the date they were first entitled to demand full repayment under the contract, or the last payment/ acknowledgement, whichever is the later. from the sounds of it they are taking this to be the termination date.

[wales01man]

Re: Car Finance Deficit - Almost 6 years ago.

Its kicked in now because of the time factor and the fear put into some that makes them pay or lose.

[Guest]

Re: Car Finance Deficit - Almost 6 years ago.

Are you sure you do not remember receiving any correspondence, particularly a default notice ?