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Finance company

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  • Finance company

    I am writing to address concerns regarding the ongoing charges and interest accruing on the vehicle account for the car, originally purchased under my company’s name, with myself as guarantor.




    To provide background, I purchased the vehicle, valued at £39,000, for business purposes and paid a £17,000 deposit. Unfortunately, due to the unforeseen impact of the COVID-19 pandemic, I had to return the vehicle, as my business was no longer able to support the payments.




    Since then, I understand that the account has been transferred to a third-party collections agency. However, I am increasingly concerned that this third party has now moved to secure debts against properties registered in my personal name. Moreover, they are applying daily interest, which is exacerbating the financial burden significantly.




    Given that these properties are personal assets and not related to the business, I believe it is essential to review the terms under which the third party is acting, as well as to clarify the basis and rate of these accumulating interest charges. I would like to request an account summary, detailing the outstanding balance, daily interest applied, and a justification for securing these debts against my personal assets.




    I am keen to work toward a resolution and would appreciate your urgent assistance in reviewing the account terms. Please let me know if any documentation is required from my end to expedite this review.




    Thank you for your attention to this matter. I look forward to your prompt response.




    Best regards,
    Tags: None

  • #2
    Was the business a LTD company?

    Comment


    • #3
      Yes and I am the director. The company is still running and not doing so well.

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      • #4
        The finance company coordinator visited my home and signed approximately 100 documents.

        Comment


        • #5
          Please read the article "Director's personal guarantees" at www.fieldfisher.com

          Particularly the 4th paragraph under the heading "Points to negotiate"

          Does your guarantee include such an express term that is recommended in this article?

          Comment


          • #6
            I agree: although the OP has not mentioned guarantees, I suspect that he gave one.

            Can he please clarify.

            The reference to 100 documents may be an exaggeration.
            Lawyer (solicitor) - retired from practice, now supervising solicitor in a university law clinic. I do not advise by private message.

            Litigants in Person should download and read the Judiciary's handbook for litigants in person: https://www.judiciary.uk/wp-content/..._in_Person.pdf

            Comment


            • #7
              Thanks for the prompt response.
              As I mentioned before the coordinator came to my house and signed about 100 pages. I didn't get the chance to read the every single paper.
              I assume that they got me to sign the guarantor paperwork without my knowledge.

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              • #8
                I had to sign at least 20 times on different papers. The finance company knew that I have properties and that is why they gave me the loan.
                Can I mention the finance company?

                Comment


                • #9
                  A limited company is not protected by CCA 74, so the terms of the financial agreement are critical
                  Are you able to upload the terms of the agreement? Particularly the terms about payment default, penalties, interest rates
                  Redact personal info

                  What has happened to the car? Was it repossessed?

                  How many payments did your company make before defaulting and how much were they?

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                  • #10
                    I gave the car back to the finance company during COVID. 4-to 5 payments were made then the lockdown came.



                    Comment


                    • #11

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                      • #12
                        Has the fc provided you with a final account showing how they have calculated the amount they claim you owe?
                        The lockdown was over 4 years ago

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                        • #13


                          I am reaching out regarding the outstanding balance associated with the account, currently under a County Court Judgment (CCJ). I understand that the debt initially amounted to £16,000 in 2020 and has since accrued to £21,000, with ongoing increases.

                          I am committed to resolving this matter and would like to negotiate a one-off payment to settle the outstanding balance in full. My hope is that we can agree on a reasonable figure that will bring this debt to a close, ensuring peace of mind for both parties.

                          Could we discuss a potential settlement amount? I am eager to move forward promptly and resolve this matter in full.

                          Thank you for your consideration, and I look forward to your response.



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                          • #14
                            No, they didn't and still chargind me interested every day.

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                            • #15
                              Sorry I am unable to read the print in the agreement. Too feint and can't enlarge
                              When did you write your letter?
                              Has the company explained how the £16k was calculated?

                              Comment

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