Unsure what to do or if I do so is it worth the default?

[JonLeda]

Hello, I am new here and tried to search for an answer but to no avail.

I am a medically retired Police Officer who received severe life changing Injuries on duty a few years ago. I suffer from PTSD as well as other issues. End of last yr my father died, my ex made allegations to the CMA about my earnings and they then insisted on claiming back £3,900 direct from my pension at a rate of £1k each month til last month. I have to look after my mother as well as everything else. The pressure I was under and new injury relating issue triggered my PTSD as well again in May this year. This all culminated into 2 months payments missed and a lot of stress. I hid from these responsibilities until yesterday after Black Horse Finance (BHF) instructed an agent from Ascent to visit me. I had a few curt conversations and arranged to meet him somewhere other than home esp. after he put a card through the house twice asking to see me about the mortgage arrears.... went down well.

I decided to take my head out of the sand cal BHF and explain what has happened and how I have ended up in this position. The lady listened and was very receptive and asked if I didn't mind her passing me onto a different adviser, I had no such worries. I then spoke with an amenable and receptive gentleman who agreed to recall the case from Ascent without any fees etc. He changed the payment date to a more manageable date instead of end of the month.

NOW is where I am confused. He explained there were several ways to deal with things such as spread the default price over the loan period or pay them off or as much as is possible. no problem so far. He then said to me he felt that as circumstances have changed greatly he would agree to a VT but would have a default payment of approx £8k on the notice or to pay off the remainder, which I cannot do now.
He then suggested I agreed to pay off the remainder over a period of time and then the default would be shown as paid in full. He did actually mention that although I would of agreed to pay the remainder if I did not then BHF would not chase as they have there asset back

So what should I do I feel the car is now unaffordable without putting me further into debt due to the circumstance change i.e dad dying and supporting my mother etc. Is the default mark on my credit file which will be there for 6yrs so damaging my life would be affected? I am not looking for a mortgage or a new car in the near future.

Which route should I take. The car On a PCP HP is a 2yr old Mercedes SLC250 and is in great order (a few wheel scratches) 13700 on the clock 10,000 miles per annum for mileage so way under the mileage limit. Serviced etc.

I can not risk further debt issues or worries as this will affect my life drastically on a health and mental health grounds.

They are sending me a pack to explain the different pathways as it were to follow, I want rid of the car now. CAN ANYONE ADVISE ME PLEASE?

Thank you for your time

JL

[JonLeda]

bump!!!!

[R0b]

Hello

Do you know if BH ever sent you a default notice requiring payment otherwise the agreement would be terminated, or did they simply send a collection agent around (presumably you have paid less than 1/3 of the total price)?

The right to VT can be exercised at any time provided that it is done before the final payment is due and provided that BH did not terminate the agreement first. If you are entitled to VT then the advisor is wrong to suggest that you will have a default of £8,000 if you VT and that is a misleading and aggressive commercial practice which is contrary to the Consumer Protection from Unfair Trading Regulations.

If they did terminate the agreement then your right to VT is legally lost, but if they agreed to exercise that VT right and you relied on that, then you could plead ignorance and say that you were told by BH that you could VT the agreement and that is what you did, so they can't renege on that now.

If you want to know more about VT then have a read of the link below which should explain everything. The general rule is that exercising the right to VT is beneficial for those suffering financial difficulties because it limits your liability to 50% of the total price payable under the agreement. That said, if the vehicle is in a newer state than expected when you VT, you can argue that the 50% threshold should be reduced, if the value of the vehicle together with the 50% exceeds, the total price you would have paid if the agreement was concluded.

Also, if BH were expecting you to pay for the £8,000 upfront and in one lump sum then they would be in breach of the Financial Conduct Authority rules because they have to give forebearance to those in financial difficulty and also the rules do state that they should not insist on taking a lump sum payment if it is going to cause some kind of financial hardship.

http://legalbeagles.info/forums/foru...on-your-rights

[JonLeda]

Hello

Do you know if BH ever sent you a default notice requiring payment otherwise the agreement would be terminated, or did they simply send a collection agent around (presumably you have paid less than 1/3 of the total price)?

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Hi thanks for the reply Bob,

The car is on a 4yr PCP With BH brought from new at a Mercedes Dealership. it has now just completed yr2 so 2yrs left to pay.

They sent a couple of letters then sent details to the agent which they subsequently have called off.

BH have been very forthcoming and apparently understanding and seem to almost encourage my VTing the Vehicle although as they say it will affect my CR. I am so down with things that it almost sounds a perfect solution aside of the CR bashing which I suppose will improve eventually I just wanted to be sure if its right. I will need to read on about VT etc. I am finding it a bit confusing.