RCI Financial Services

[Rennie]

Hi,

Wonder if someone could help as im really loosing hope in what to do.

I took an agreement out for a car in Feburary 2007 for the ammount of £11,668.59 including all charges and intrest etc. Payment Per Month was £178.98.

The car was paid until the November and since then no payment has been made as i have been out of work through depression and had no money to pay. I called and advised them of this and arranged to start paying asap. I never got back to work untill last month and intended to pay with my next wage another payment.

But yesterday i received a letter containing a Default Notice under Section 87 of the CCA 1974 requesting arrears payment of £2385.38 by October 17th or further action will be taken.

I am just off the phone to them to arrange a payment plan and they said they cannot help me because i have failed to comply and the default has been sent to me. The man on the phone said it will be auctioned off and i will pay whats left but that will be a few days after the 17th.

I dont have the 2k to give them and certainly not by the 17th, And i really need my car since getting back on my feet for my new job.

I realise what i have done was the wrong way and should have kept contact so please dont go into that as iv had it all from my mum already.

Where do i go from here? Is the car being taken from me?

This is my only debt and i live at home with my Mum.


Any help greatly appreciated.


Rennie

[TUTTSI]

Re: RCI Financial Services

Hi Rennie

I am sorry to hear of your problems. I can sypathise with you as I had a similar problem with VWS some years ago before sites like Legal Beahles were arround.

If I remember correctly they cannot repossess your car if you have paid a 1/3rd, which in your case is £3,389.14 (you will see on your HP agreement what the percentage is) in your case I calculate that you have paid £1610.82 which is 13.8% if there were some way in which you could pay £1778.32 before the expiry of the default notice that way they cannot repossess your car.

Also, if my memory serves me correctly, I found out for me after the event and when it was too late that the Consumer Credit Act States that if the vehicle is parked on private land whether the minimum % has been paid or not that they cannot under any circumstances repossess the vehicle. Also, you should be entitled to be able to go to court to obtain a time order. This I believe will allow you time to make the payment and come to an arrangement with them.

Another alternative, is it is at all possible that you could borrow the money from your parents to stop this happening.

I will try and look back through my old papers if I can still locate them and revert back with any further info that I have.

[Tools]

Re: RCI Financial Services

Hi Rennie and welcome to Beagles.

Ok just to clarify

Purchase/credit price was £11,668.59 in February 2007 with RCI

You have paid 7 or 8 payments of £178.98 (February 2007> November 2007)

Due to illness and lack of income you were unable to continue your payments from November 2007 until now September/October 2008 running up arrears of £2385.38.

Are you now back at work and able to make payments on the loan of £178.98 per month?

If so are you also in a position to extra on top of the £178.98 for example an extra £100 per month?

How long is left on the agreement, when was it originally due to be completed?

Did you take out any Payment Protection Insurance policy on the loan?

What I am suggesting is that you write to them making an offer to continue repaying your monthly payment PLUS an additional amount you can reasonably afford to clear the arrears over a period of time.

If you DO have any further debts, no matter how unimportant you may think they are, please tell us, it could make a huge difference in the help and advise everyone will be able to give you.

If possible please complete our Beagles Managing your Finances Budget Form , the information you provide should be as accurate as possible and will NOT be visible on the forum other than to the Site Team. Only then if needed and with your agreement will the information be publicly visible on your thread.

Pkea has experience of dealing with RCI I am sure he will be able to advise you better than myself.

Also why not take a look at your very own welcome thread Welcome Rennie and introduce yourself more.

Tools

[Rennie]

Re: RCI Financial Services

Hi, Thanks for your replies, I really do appreciate them and also your outlook on the problem as i put the same post on another forum and got nothing but but things like 'you idiot' or 'its your own fault'. Not very helpful.

Anyway, Yeah thanks for your replies both of you.

I am now back at work and earning around 900-1000 a month.

My outgoings are my cars insurance and money for my keep at home which is around £120 a month.

My Mum just manages with what she has herself so i dont htink asking her for money would benefit as she doesnt have that kind of money to hand.

I would most definetley up my payments to help clear my arrears but when i called them they refused to accept any negotiating. I have since learned its better to write in.

The period of finance was a 5 year contract and im almost 2 years into it and i have no PPI insurance or any other form of payment protection. Luckily i did have this on my car insurance without knowing.

Yeah, i realise what your saying but i definetley have no other debts what so ever, Only this arrears with my car. I say 'only' like its not an issue. But im 20 and dont have a mortgage or loans or anything other than the car.


Again, If you cannot help further i still appreciate the replies given.

[scottishlass]

Re: RCI Financial Services

Hi rennie,

I have had dealings with RCI for my daughter and they are not very helpful at all when you phone, if you actually manage to get them to answer that is.

What I would suggest is as Tools has already said, but in writing, and if possible send the first payment with the letter, this will let them know you are serious.


We are a friendly bunch here so don't worry, we are not here to judge you.
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forgot to say if you need help with a letter just shout

[Tools]

Re: RCI Financial Services

Hi again Rennie and thanks for the updated info

So in all practicality how much `spare` income do you have each month, taking into account any other expenditure you may have such as going out on a weekend etc.

Keep everything in writing wherever you can, you need to act quickly, try and get a fax number that you can send your letter to or an email address. You can then send a letter this way followed by the same letter in the post as backup.

[TUTTSI]

Re: RCI Financial Services

Hi Rennie

FOR YOUR INFORMATION

I have looked up my old correspondence and I can tell you that section 92 of the Consumer Credit Act 1974 states - that they cannot enter private property to repossess the vehicle whether a third or not has been paid.

You definately need to seek a time order from the court under the Consumer Credit Act 1974. This will enable you to gain extra time with the default notice and to come to an arrangement with RCI. This is extremely important IMHO.

What date does the default notice expire? as this is important not to loose track of this. IMHO you cannot rely on RCI responding to you before the expiry and they will as sure as eggs are eggs they will instruct the bailiffs to repossess the vehicle at the first possible moment at the expiration of the default notice. Having had first hand knowledge I know how they work and believe me if my experience can help others then at least my knowledge can help.

By all means follow Tools and Scottish Lass's advice and write to them by recorded delivery and also send a chq but also you should also at the same time, apply for a time order with the court that will definately buy you time and you can then explain how you got into arrears and how you are working and need the vehicle for your work and that you want to come to an arrangement. The courts can be very sympathetic in these cases.

Do you have parking on private property?

[Tools]

Re: RCI Financial Services

Excellent advice Tuttsi, I did not know that.

If no private parking is available, or indeed as a precaution anyway, do you have anywhere separate to your home address the vehicle can be parked until the immediate threat of repossession is gone.

[Rennie]

Re: RCI Financial Services

I could spare another £150 - £250 that i dont have to have. I dont drink or do drugs etc, Nor do i go out at weekends, I spend most of my time with my girlfriend and strangely she doesnt cost me much when we're out unlike some.


What do you suggest i do from here?

Write a letter stating that i WANT to pay this and sort it and in the meantime keep the car elsewhere.

What is likely to happen? If they dont get the ammount by the 17th will they just come and get the car without messing around or will it have to go to court? Or are they using this as a scare tactic to get me to stump up right away then arrange a payment plan once they realise i really dont have the money to pay the lump sum?

My Mum is down as gantor (spelling?) and she doesnt want to go to court but i dont mind going if i have to fight my side.

Sorry for all the questions etc.

[TUTTSI]

Re: RCI Financial Services

I could spare another £150 - £250 that i dont have to have. I dont drink or do drugs etc, Nor do i go out at weekends, I spend most of my time with my girlfriend and strangely she doesnt cost me much when we're out unlike some. I would offer what you feel you can afford to make this sittuation acceptable to you, leaving yourself with some money over for your needs. Don't forget you need Car Tax, Car Insurance, Poss MOT and repairs as well as Petrol. You currently owe £1968.78 approx! so if they agreed to £200 per month extra you would be able to repay the arrears over 10 months or sooner if you can.


What do you suggest i do from here? call the courts and tell them you need to make an application for a time order under the Consumer Credit Act 1974 and the courts will advise what form you have to complete, if you need further help someone here should be able to help you complete it.

Write a letter stating that i WANT to pay this and sort it and in the meantime keep the car elsewhere. As I said in my earlier post you can do this in addition but I cannot stress how important it is if you want to stop the repossession to get the time order ASAP.

Also as your Mum is a guarantor if the car is repossessed they will sell it at auction and any shortfall plus recovery charges on the repo they will come after your Mum for the balance. If you post up the letter on your thread one of the team will take a look at it and amend if necessary. In my case I had an addition £4k+ to pay because they sold the vehicle well below value and loads of added costs.

What is likely to happen? If they dont get the ammount by the 17th will they just come and get the car without messing around or will it have to go to court? Or are they using this as a scare tactic to get me to stump up right away then arrange a payment plan once they realise i really dont have the money to pay the lump sum? If you are not able to get an agreement before the 17th they will come and take the car. That is why for yours and your Mums protection the Time order is your best hope. They came at the crack of dawn for my car, they wheel clamped it and demanded the keys otherwise they were going to smash the window to get in and charge me for the damage.

My Mum is down as gantor (spelling?) and she doesnt want to go to court but i dont mind going if i have to fight my side. It is not neccessary for Mum to go to court.

Sorry for all the questions etc.

No probs we just want to help.

Let us know how you get on with the courts.

All the best

[Paule]

Re: RCI Financial Services

Hi There

Can you scan the default notice you recieved from RCI

RCI send letters out like confetti, Is this the first youve heard from this as they ususally send out reminders first c/w with a payment slip for the £25 charge for the letter.

I have had a default notice from RCI and sorted out a payment plan, so they will agree to one, it is usually the fact that the person who calls is only interested in getting all the money.

You can do as Tuttsi says and get a time order from the court to cover your back.

How soon can your make your next payment (ie when do you get paid)

I would write to them explaining your circumstances and that you are able to maintain payments now plus and extra payment to cover the arrears.

I would suggest initially sending a cheque with the letter for the agrreement figure of £180 plus £180 to cover the missed payments.

Tell them you will make montly payments of £360 till the outstanding balance is clear. Then you will revert to the monthly payment of £180

Just make sure that the additional amount you are going to pay is realistic, ie you need to keep it up for 10 months.

I would advise against emailing them, as they arent responded to very swiftly.

Send a letter and get it 'signed for' (think this costs 70p)

PKea

[Rennie]

Re: RCI Financial Services

Thanks for that PKea, Really useful.

Yes, This is the first default notice i have had, The last letter said i was in arrears and so on and asked me to call them which i did and advised them of my situation, This was back in Feburary though.

I will scan the default letter tonight as my girlfriend has a scanner for her computer.

I get paid on the 25th which is unfortunate, But i think i'll write a letter explaining what has happened and so on and tell them i'd like to maintain the payments again aswell as the extra to bring it back up to speed.

I'll search around and see if theres a draft letter on the web.

Thanks again guys and girls, much appreciated.

[TUTTSI]

Re: RCI Financial Services

Here is the details for a Time Order

http://www.insolvencyhelpline.co.uk/...ime_orders.php

[Paule]

Re: RCI Financial Services

I'll search around and see if theres a draft letter on the web.

If you want to have a go yourself, then post on here and we can help you tweak it and get it right.

I will try and find my old letters, might give to a basis for your letter

PKea

[Rennie]

Re: RCI Financial Services

I dont know where to start with a letter so im just waiting on my sister coming home tomorrow to help me type one up.

I see that you can apply for a time roder etc but how would i know which court to apply to. There is no mention of a court in particular, just the point that they will pursue court if payment is not met by the 17th. im probably best getting that letter scanned asap and letting you guys have a look and see what you think.

Many thinks for your help so far.