Moneybarn Default Notice - Voluntary Exit of Agreement

[Remi09]

Hi,

I have a few missed payments on my car due to financial difficulties & was issued with a default notice on 9th July giving me 20days to pay the outstanding arrears. The 20 days ends tomorrow.

I'm just after some information on what my options are with regards to exiting the agreement before paying the sum owed as it's taken a lot of effort to get this money together.

I've paid over a third of the value of the car.

I've called them today & they're going to give me a call back to go over my options. I'm just wondering if anyone on here can give me information on what my options are in case they don't tell me all of what i need to know.

TIA

Stressed! x

[R0b]

Re: Moneybarn Default Notice - Voluntary Exit of Agreement

Your best bet would probably be to voluntarily termination under section 99 of the CCA. This limits your liability to 50% of the total amount payable rather than the full amount under the agreement. You are still entitled to do this before the creditor terminates the agreement, once they have terminated then you lose that right and they can come after you for the full amount under the agreement.

If you VT, the difference between what you have paid and the 50% becomes a debt and the finance co could take you to court for a CCJ but if you are having financial problems then you could raise this and try to come to an arrangement out of court to avoid issues obtaining credit or possibly a mortgage. Under the FCA rules they are under an obligation to consider your financial position and not treat you unfairly, if they do and demand the full amount in one go then you could make a further complaint to the ombudsman as to their conduct and they may be able to come to a solution.

You could also seek a payment holiday which gives you a month or two to sort your finances out but may not be worth it if this is a long term thing. This option is usually good for people who lost their job and need to get back on their feet.

Your final option could be to pay lower monthly arrangements but this means that the agreement is going to be longer than expected.

VT might be the better option and since your default period is up tomorrow you need to act quick if you want to VT.

[Remi09]

Re: Moneybarn Default Notice - Voluntary Exit of Agreement

Thanks for the advice.

I'm in a position now to pay my arrears & keep up with my payment so don't really want to lose the car if possible.

Plus there is some damage to the rear paint work of scratching where someone has driven into my car but not left any details so I'll be liable for that also.

I'm still 1277 off from paying half so I've found out.

I thought I read in my agreement about one I'd paid a third of my cars value which I have I could hand it back.

If it went to court would they allow me to make monthly installments?

Thanks x

[R0b]

Re: Moneybarn Default Notice - Voluntary Exit of Agreement

If you can pay your arrears then you need to pay it by tomorrow which is the last day before they have a right to terminate. All you then need to do is continue paying your monthly instalments.

[Remi09]

Re: Moneybarn Default Notice - Voluntary Exit of Agreement

My next payment is due Monday though & I don't get paid until the 5th. Will they issue another default notice?

- - - Updated - - -

Sorry for all the questions. If I decide to hand it back or VT they advised I'd have to pay for excess mileage & damage. Would they want this all in one lump sum?

[R0b]

Re: Moneybarn Default Notice - Voluntary Exit of Agreement

Its highly unlikely that they will send another default notice. They are only required to send you one and after that point they will more than likely terminate the contract.

So your options are to try and source the money, perhaps borrow from friends or family until the 5th and pay the arrears tomorrow, or risk it and pay on the 5th but if they have given notice to terminate then you are buggered and the car will be repossessed, you will owe the remaining balance on the agreement leaving you in a far worse off position.

Unless you VT before the close of business tomorrow, that will mean emailing them to VT, then you have very little choice I think.

Excess mileage cannot be charged. The car only need to be returned in a reasonable condition, so there is no direct obligation to pay for any damage and the onus is on Moneybarn to prove the car is not in a reasonable condition.

About the 1/3 rule this only applies to the fact that moneybarn cannot repossess without a court order if they terminate the agreement. They will be in breach and potentially your liability could be extinguished but i wouldn't rely on that.

In terms of making up the 50% they would probbly demand the money in a lump sum but if you truly cannot afford to pay then you can offer a reasonable amount back e.g. the same amounts you are paying now per month and see what they say.