Moneybarn - Car written off, settlement figure and court action

[Infinity256]

Hi, new to the forum and apologies if i make any mistakes. I am writing on behalf of a relative who is currnetly strugglingwith Moneybarn.

She basically took out an agreement in 2020 and late 2021 the car was written off. She has been paid out and the figure is less than the finance on the car. Relative has made contact with Moneybarn and given a settlement figure of £9065.26 inlcuding amount of rebate (Nov 2021). She has contacted them and when spoken to someone advised that she can pay circa 6k and can she have a repayment plan for the remainder. She hasnt heard back until January with court action for the full figure of £11351.28 plus £600 costs on top. Again tried to get through to money barn but no response back.

Part of the issue has been exasperated due to the poor customer service that is on offer from moneybarn and the difficulties in getting hold of anyone.

Reading through the forums is the best course of action to:

1. Transfer maximum funds to the account given for the rebate and negotiate a repayment plan
2. Email a letter of complaint advising the manner in which this has been dealt with has been unreasonable and againts FCA guidance
3. Respond to the notice from the courts seperately - defending the claim

Any advice that can be given would be much appreciated.

Relative is currently on furlough and is not in the best of financial situations etc

[DE DOGS]

Question Why has the insurance not paid the total?, and settled the outstanding. that's what we pay insurance for.

[des8]

The insurance policy will only indemnify for the market value of the car.
The financial agreement is a different fish and is based on purchase price plus interest over a three/five year (?) period.
They will be looking for that interest which will be built into the settlement figure, taking into account a rebate for early repayment of the loan
To protect one from the costs of this sort of situation it is possible to effect GAP insurance

If an actual court claim has been received she should acknowledge it, but not yet enter a defence, while she decides what to do.
Don't ignore the court papers, but do try and get the case stayed whilst negotiating.
If she can come to an agreement outside of court it will avoid a CCJ and the problems that can bring

Perhaps a complaint to Moneybarn asking them to reinstate the original offer.
Explain there had been no further communications, and if they don't agree you will be making a complaint to the FOS

[Infinity256]

Thank, i am trying to work through to a stay at the moment however again contact seems to be really difficult with Moneybarn