Car leasing firm gone bust, what are my rights?

[nicknock]

Hi

I found out yesterday that my car leasing firm has gone bust when someone called me. They have asked me to return the car in 30 days and said i should have had a letter to inform me 2 months ago, which i have not.

I had a payment holiday last year because of Covid which was all agreed and i was told it would not negatively impact on my credit file, which it hasn't so far.

I was due to swap the car in January 2022 as per my lease agreement so i am now left with no car and i will have to continue to make the payments from the payment holiday last year.

I received a letter this morning saying my account had defaulted, which it hasn't, i have paid on time every month throughout 2021 after the agreed payment holiday ended.

Any advice welcome!

Thanks

[echat11]

R0b Can you take a look and advise, many thanks.

[nicknock]

Hi

Just bumping this up, any advice would be appreciated.

[echat11]

What does your agreement say happens to the lease when the 'firm goes bust'.?
Who sent you the email?

R0b Can you take a look and advise, many thanks.

There is some info here, posted just for info -

https://flexed.co.uk/faq/what-happen...dministration/

[R0b]

As already mentioned, check your contract and see if there's anything in there that says what happens if the lender becomes insolvent. I would refrain from simply handing over the car because you could be inadvertently ending the agreement yourself, especially if the company is bought by someone else and they expect the contract to continue as is.

So, check the contract terms first and if you are worried then write to them and ask them what part of the contract are they relying on which allows them to have the car returned.

[nicknock]

Thank you. I typically cannot find my agreement, will have to do some digging. Can I request a copy? It all seems really dodgy to be honest. I haven't had any written communication other than a letter saying my account has defaulted. I asked them to email me with what they think is owed and what's happened to the company etc but nothing.

[R0b]

You can send a formal request (known as a s 77 request under the Consumer Credit Act) along with a cheque or postal order for £1 and ask for information about the contract which would include a copy of the executed. If they fail to comply then the agreement becomes unenforceable until such time that they do decide to comply.

An alternative is making a subject access request which gives you all information they hold about you, but the contract continues to live and you carry out your obligations as normal e.g. paying your instalments.

In either case, I would suggest you send either request by post and also by email - when drafting your letter underneath the address just say somthing like "Sent by first class post and email to: [insert email address]". That way you have evidence to say that a request was made just in case it is disputed.

This situation could turn into something a lot bigger especially if the company is insolvent and third parties get involved so you would be wise to ensure all communications are kept in writing and if you need to talk over the phone then you either record the conversation or follow up with an email to confirm what was discussed. I wouldn't rely on the lender to do the work for you.

[DE DOGS]

Personally, I would not surrender the car until you have definite proof of the new owners right to repossess, as once you release the car you may become responsible for any and all claims that may arise.