I was made redundant last year. So far All payments have been made in full on time. Now I can only afford half of the monthly repayment - I have offered this to the creditor but have been told that this is breach of contract and the goods can be taken from me against my will - I'm sure that this is not right. Can anybody give me some advice. Where I live, a car is not a luxury but a necessity.
2006-06-09 03:01:12 · 10 answers · asked by efilnikufecin 2 in Cars & Transportation ➔ Other - Cars & Transportation
Here's the CORRECT answer. You are wholly responsible for the outstanding amount until it is paid in full. The creditor COULD make arrangements with you, but they do not have to. And yes, they can repossess the car at any time once you are in breach of contract.
That being said, they don't really want to own a car or hassle with liquidating it; they just want their money. Here's an idea...go to them, and reiterate that you are having financial difficulties, but you want to pay what's owed...however, unless you can work out a payment arrangement with them you may be forced to seek bankruptcy protection. You'll be amazed at how they will become willing to work with you once they hear the "B" word- because if you actually do file, then they would be forced to accept partial payments, at a minimum, and could get little to nothing. Just the implication usually will suffice to get them to work with you. It's a little sneaky, but better than losing your vehicle. And with you owning 75% already, they should realize that it won't take that long for you to clean up the balance.
If they still refuse, here's a second alternative, assuming you don't want to file bankruptcy... I don't know what your credit rating is, but you can possibly get a small personal loan from a different institution for the amount owed...pay the car off, have title in hand, then make payments on the smaller loan. You'll be paying interest on interest, but again, it's better than losing the car and/or damaging your credit.
Hope this helped somewhat.
2006-06-09 05:12:51 · answer #1 · answered by answerman63 5 · 2⤊ 0⤋
Read your contract. However, I suspect that they are almost certainly right and unless you have fully repaid the amount the goods can be confiscated and sold to repay the outstanding debt. Even though you owe only 25% of the initial cost, depreciation since your loan and the fact that repo companies sell off goods at auction where they get an immediate return even if it isn't the best price means that your share may only just cover the outstanding 25% of the original loan.....they will also levy fees on you for the action taken to recover your debt, and these will be also required to be covered by the sale of the goods. The 'necessity' or otherwise of a car to you is, I'm afraid wholly irrelevant...
2006-06-09 03:08:19 · answer #2 · answered by eriverpipe 7 · 0⤊ 0⤋
Did you take out redundancy protection with your loan? If so cmake a claim. Usually these policies pay out for a year and will give you some breathing room.
If not and the loan was secured on the car, then you need to check the hp agreement.
Most important is to talk to the hp company. If it's a half decent company, they may allow you a reduced rate for a short period if you can satisfy them you are looking for employment.
2006-06-09 03:07:09 · answer #3 · answered by Boris 5 · 0⤊ 0⤋
If your car is on HP, the credit company has every right over the good. You can approach another creditor and transfer the credit amount to them and pay the instalments to the new company...
2006-06-09 03:07:08 · answer #4 · answered by crossword 2 · 0⤊ 0⤋
If it's HP then yes I'm afraid it's true and they will. Have you thought about settling the HP with a bank loan over a longer period?
2006-06-09 03:05:31 · answer #5 · answered by Anonymous · 0⤊ 0⤋
in thu uk the finance company cant just come and take the car if you have paid at least 50% of the total amount payable.they have to take you to court.this isnt beneficial to them as they will lose out in the end.most finance companies would rather come to a deal with you.
2006-06-09 04:04:34 · answer #6 · answered by goldstarsm 3 · 0⤊ 0⤋
unless you have payment protection plan then sadly they can take the car if you owe just a fiver
double check with the citizens advice though
2006-06-09 03:06:30 · answer #7 · answered by everybody loves chris! 4 · 0⤊ 0⤋
Yep.
They can repossess the car at anytime until the note is paid in full.
They can then sell the car and any leftover debt is your responsibility.
2006-06-09 03:06:07 · answer #8 · answered by J.D. 6 · 0⤊ 0⤋
Cant you just refinance the car?
2006-06-09 03:06:58 · answer #9 · answered by elijahjaye 5 · 0⤊ 0⤋
I dunno where you live but in america if you dont pay after three months that babys gettin repoed.
2006-06-09 03:05:53 · answer #10 · answered by missthang 1 · 0⤊ 0⤋