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Moneybarn - HP VT - Payment Holiday

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  • Moneybarn - HP VT - Payment Holiday

    Good afternoon,

    Following C19 related difficulties with Job/salary I applied for a Payment Holiday with Moneybarn in March 2020 for three months, and went back to paying in full from July. The three months have been added to the end of the Agreement. Moneybarn have also sent a Notice of Sum of Arrears.

    I am still in financial difficulty and need to VT the agreement, I pay £460 a month – Car price was £13,500 in Jan 2018, total payable was £21,769, I've repaid £12,963. The car is worth somewhere between £7k and £8k (whether it will get anywhere near that at auction is anyones guess).

    The below is what their most recent email stated in terms of the Payment Holiday:

    How will the payment holiday affect your agreement?

    Your payment holiday is a ‘temporary concession’ which means the terms of your agreement remain unchanged. Any payment(s) which were held during the payment holiday will be due at the normal natural end date of your agreement. We will then take these payments in monthly instalments, as agreed when we offered your payment holiday to you. We will not charge you any additional interest or charges under this arrangement as a result of you repaying arrears in this way.

    Please note - we will need to send you a ‘Notice of Sum in Arrears’ every 6 months going forward. We’re required to send this to you in line with regulations, to reflect the fact that you have missed payments due to an agreed payment holiday. As long as you’re up to date with the agreement (other than the agreed payment holiday) you can ignore the fact that it will request you to get in contact with us to address your arrears.


    The question is, will I need to repay the three month payment holiday?
    Last edited by WightSedge; 16th September 2020, 13:04:PM.
    Tags: None

  • #2
    The rule is that you only need to pay 50% of the total price, so I don't see how you need to repay the payment holiday if you have already met the threshold. There is also the fact that the email confirms that the payment holiday will be due at the end of your agreement, so although you are treated as having 'missed' those 3 months, there is an arrangement in place to pay at the end of the agreement, so in fact they are no longer due as of now.

    Only way to find out is to VT and then take it from there.
    If you have a question about the voluntary termination process, please read this guide first, as it should have all the answers you need. Please do not hijack another person's thread as I will not respond to you
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    LEGAL DISCLAIMER
    Please be aware that this is a public forum and is therefore accessible to anyone. The content I post on this forum is not intended to be legal advice nor does it establish any client-lawyer type relationship between you and me. Therefore any use of my content is at your own risk and I cannot be held responsible in any way. It is always recommended that you seek independent legal advice.

    Comment


    • #3
      Many thanks Rob, much appreciated. I think I know what Moneybarn will say, and will take it to complaint/FOS if necessary.

      Comment

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