I entered into an IVA last August, I declared at the start that I had a HP car that I needed for work, all seemed fine. Unfortunately my partner lost her job meaning finances struggled as cost of living also went up. My payments became late and I actually missed 2 this year. Peugeot Finance terminated the agreement and advised me it would be repossessed. 7 am 8 March a tow truck appears. One of the men said we are not here to repossess, we just want to know do you surrender the vehicle? to which I said no. He said ok we will come to an arrangement to pay what you owe.
I called him back the following week where he mentioned I was in an IVA which he felt I had withheld from him. He went on to say we will see if arrangements can be made at your usual payment level. On Friday 16th March I was minutes away from being wheeled into surgery for an abscessed appendix to receive a call saying my car had been repossessed. I have been discharged and so on the road to recovery, but I'm bewildered. My partner has a new job and I wanted to beging getting back on my feet. Over a 3rd of the vehicles value had been paid and the recovery company said no court order was needed.
I had a HP style agreement which had a clause that stated that if 3 payments were missed, and no arrangements were made to get back in track, then they could repossess the car at any time.
In my agreement I had a balloon payment at the end to either purchase the vehicle or voluntarily terminate me contract, which I did, as my car value was less than the balloon due.
I would read through all agreement paperwork, and if stuck ask th company to clarify or speak to the CAB.
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
Thanks for replying. I understand and accept the repossession part but I what about the fact I have paid over a third of the value? and no court order. They now have all my payments plus the car.
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 is frustrating, but unfortunately that's what HP is about - you don't own the vehicle till its fully paid for.
I had part exchanged my 4x4 towards mine, worth £10k, then made over £18k in payments over 3 years, with just the balloon left, and I was angry that because of my iva they wouldn't let me pay the last balloon over 6 months to then own it, but their attitude annoyed me more, as well as lack of understanding, especially as I had written to them for 3 months as well as made calls, which Is why I handed my car back.
But despite all of the above, if it is in black and white then you may have difficulty getting them to reconsider.
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
The IVA would have defaulted the agreement and you lose your rights to termination and also the standard protection. Most HP companies allow the arrangements to continue provided there are no arrears but they can seize the vehicle even if the payments are up to date.
wow so it looks like I have lost what I have paid, over £4k and they get to keep the car also, because I'm in an IVA. I accept the repossession of what is theirs, but they should now then pay back what I have paid, should they not?
They will sell the vehicle and reduce the outstanding HP amount by the sale proceeds. They will then enter any shortfall into your IVA for dividend purposes. In the unlikely event that they get enough to clear all the outstanding HP the surplus will be returned to you or offered to your IP.
