Well after the joy of being accepted for our IVA's yesterday & the first good night sleep in ages I come home from work today with a letter from the car HP company, RCI Financial Services, saying that as my husband has entered an IVA they are terminating the HP agreement & want the full payment of the outstanding amount by 02/11/09 or they will take the car back.
Has anyone else come across this before & what should we do? I'm panicking now that we are going the lose the car which my husband needs to get to work.
Hello I was with Renault Financial Services when I took out my IVA back in 2005 and never heard anything from them, they actually refinanced me in 2007 knowing the situation and fully aware of IVA, firstly dont panic I presume there is an allowance for the HP in your expenditure, you will need to present your case to them maybe with the help of your IP. They may reject it first time but if they can see you have an allowance they may see logic dont give up, they may change your arrangement but they must know you cant afford to payup x Good luck x Karen
On the slow safe road to success. Personal thanks to Melanie Giles Kallis Skippy Elv5 and all the other wonderful forum friends.
Call me at the office to discuss this tomorrow, and if you cannot get me please ask for Sue Pervoe who is our resident legal eagle and will sort this out for you. They can only take the car back if they have grounds to do so within the agreement - and I have personally never seen it happen.
I had a HP agreement with Black Horse which was not included in the IVA and shortly after it was accepted I received the following letter:
"This notice is served under section 76(1) of the consumer credit act 1974. Under the terms of your agreement with us, we are entitled to terminate your agreement if you make an application for a voluntary arrangement.
On 1st September 2006 you made an application for a voluntary arrangement and on 15th September 2006 we intend to terminate your agreement and to recover possession of the goods specified above.
This notice will take effect on 15th September 2006 as notice of termination of the agreement."
I had never missed a payment and the finance wasn't included in the IVA, I rang Black Horse and they said that as I had broken the agreement purely by applying for an IVA then they had no choice but to terminate the agreement even though the car finance wasn't included in the IVA. He also said that as long as I continued to pay they would definately not be 'uplifting' my car. I asked for this in writing but he said he was unable to do that as technically the agreement had been broken but not to worry in the slightest.
I know it's a different company but it's a similar situation so hopefully the basis behind it will be the same and there'll be no problem with it.
That is almost exactly the same as the letter we have received from RCI. My husband is going to give them a ring this morning so I'll let you know how we get on.
Melanie - I'll give you a ring later if we have no joy.
I can't see their problem - as long as you pay your monthly instalments, then you should be allowed to keep your car.
I hope both of you get this sorted out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It seems very odd RCI are only doing this to certain customers and not all. I think though, this is a good sign and cause to argue against the decision.
I think it is disgusting that you should be penalised if you are making your monthly payments.
Let's hope common sense prevails on these occasions.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi
You would think that they would rather you carry on making payments as normal.
Maybe as others have said it is just a standard letter that they send when they get notice of the IVA and that they will allow you to carry on making payments
Regards
It seems that they won't budge on this just yet & have requested a letter from our IP which will then be looked at once they have our figures in front of them.
We explained that the payments are allowable under our IVA agreement but they won't comment any further until they have further evidence. They said at the end of the day we have defaulted on the HP agreement & so they can take the car.
We said that we had heard of other people who have HP with them who are in an IVA & have been able to keep the car. They said that each case is looked at on an individual basis & it may be that they have written to us because the agreement is less than 3 months old (We changed the car before going for the IVA so we would know where we would be & have a reliable car over the next 5 years).
I've left a message for Melanie to give me a call back so hopefully we can get this sorted out.
It is so frustrating when you think that everything is sorted & then this comes out of the blue x
