www.iva.co.uk

Hi

I had a car loan and have been unable to make full payments since october 2006. The debt has been sold on and the new company have written saying unless I make full payment within 15 days they will send in baliffs, bla bla, take court action, bla bla bla, my credit rating will be seriously affected (you dont say?) bla bla and this is the one that bothers me they will make arrangements to collect the car and sell it. All of the scary words are in capitals and bold type so they stand out. Can they do this?? I mean the latter, it was not a Hp agreement it was a car loan.

I took out the loan 4 years ago and did not default on the payments until 5 months before it would have been paid up,(March 2007) so I really do not owe that much.

Gateful for any reply

lily

Hi Lily
Even if the car was on HP they could not repossess it without a court order as you have paid the lions share.As it,s a personal loan then they can,t just come and collect it,they will again need a court order and they will not be able to get this.You own it not them.
It,s scaremongering Lily
Regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Thanks Andy

OK, thats what I thought but it is writen in black and white and it did have me a little worried, I just wonder how they get away with putting something like this in black and white when they do not have such power? It hasnt gone to court or anything and I have been trying to settle the debt with the original company.

Thanks again

lily

They do it because other people believe what they are saying and hand over their cars! Just as well you know a little more about the legality of this, Lily, as they have no hold over your car unless you have given them any security. Presumably it was not purchased on one of these "log-book" loan agreements?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk