Just seemed to be getting back on track after entering into an IVA when I get a letter from Black Horse Finance threatening to repossess my car.
The debt on the car wasn't entered into the IVA, and I haven't missed a payment. I made a late payment back in March, and was 1 day late this month because the new direct debit wasn't completed in time when my old bank account was closed. My IVA income & expendature was calculated taking into consideration my finace payments, so why the big deal now?
I haven't paid a third of the agreement yet, I've paid £3370 of £12339.
Both my wife and I rely on the car for work, without it I will lose weekend overtime, putting a bigger strain on finances.
I believe Black Horse finance are renowned for this as they just don't like people in IVA's continuing with their finance, did you not look into this before you took out your IVA?
Your options are to appeal to their better nature and explain that your IVA allows for continued payments to support the car finance and hope they will allow you to continue, if not, the only option is for them to repossess the car and ask for a payment break to purchase something cheap to put you on?
That's not good to read, we have a car with Black Horse Finance, we have approximately 13 months left on our repayments, this was factored in our income and expenditure, so the IVA wouldn't touch this - I've just this minute dug out the car finance paperwork and looking at the Terms and Conditions it does state the following:
"We shall also be entitled to terminate this Agreement (provided we have given previously given you seven day's notice of our intention to do so) if you present or have against you a petition for a bankcruptcy order or a scheme of arrangement or an application for a voluntary arrangement or are apparently insolvent, or if you cease to trade, or the Goods are seized or detained by anyone having legal authority to do so"
As I said not good news, as we need this car for work etc. What should I do, can the do this, when they will still be getting their monthly repayments as they have always have done?
Unfortunately yes they can, although as you have paid over half of the payments I believe they would have to get a court order to repossess the car. You may be able to argue with them over it as you have such a little time left or hopefully fingers crossed they won't repossess, the other option of course is to see if a family member could lend you the balance to settle the finance if and when they demand it?
Did not think to read the T&C beforehand prior to entering an IVA - was not something I thought about tbh, and so a bit panicky now that I have now just fully realised the implications...oh, it was going so well...
Looking at the Hire Purchase Ageement regulated by the Consumer Credit Act there is a paragraph stating Reposession: Your Rights that if we have paid at least one third of the total amount payable under this agreement, they may not take back the goods against our wishes unless they get a court order, as you have mentioned above.
This still doesn't sit well with me, and no other alternative such as a family member can help us out, I shall have to make a telephone call tomorrow to discuss this, or should I wait until I receive a letter as the OP did?
One step forwards, two steps back...
One other thing, if they do demand that the agreement is in default would it be in their best interest to settle on a full and final figure instead of repossessing the car, and thus ending the agreement in it's entirety? Namely just to cut their losses?
Apologies to the OP for highjacking their thread.
Last edited by Coffee Break on Tue Aug 28, 2012 10:29 pm, edited 1 time in total.
This is something that didn't affect us, but if it had it would probably never entered our heads to check the t&c if the payments were factored in so I wouldn't blame yourselves for this.
For all of you with this hanging over you, I think the best person to advise and to help you in this would be your IP's.
As stated above, if Black Horse have to get a court order this will cost them money and I would think you could appeal to keep the car but please talk it through asap with your IP.
It's in no-ones interest to have cars repossessed if you rely on them. If this does hapen though I would ask for a payment break to try and save enough for a runaround so you can continue to work.
Good luck to all and please let us know how things go as it will probably be of great help to others on the site both now and the future.
It is actually quite rare for Black Horse to actually repossess a vehicle once their customer enters into an IVA - regardless of the wording of their agreement. So don't panic unecessarily and maintain payments, as your IVA proposal allows you to. HP companies want cash in their bank accounts and not a stockpile of second hand cars which they have to pay to collect, insure and sell.
You may have received a standard letter sent to those in IVAs or bankrupt. Check the bottom as it often says on the letter to ignore it if you are in an IVA and an allowance has been made for the monthly payment.
