www.iva.co.uk

Hi there,

We have a car on finance that was purchased direct from the dealer, we are the 2nd registered keepers.

The finance was arranged by the dealer with GE Money, and we suspect this is actually a loan and not HP as the documents state Motorloan.

If it is a'loan' rather than HP, will it need to be included in an IVA?

This being the case, what happens to the car? we had it valued yesterday - £7500. What is the finance companies interest in the vehicle? If its a loan included in an IVA can they reposses the car if we try for an IVA?

Regards
flowerpot

Yes - the loan will need to be included into the IVA, and your IP will want a copy of the agreement to ensure that it is unsecured. In the meantime keep up with the payments.

If the loan is unsecured, the finance company has no interest in the vehicle and it rightfully belongs to you, and cannot therefore be possessed. If it is on a HP agreement, this is different, so I suggest that you get the IP you have chosen to represent you to look at the agreement as soon as possible.

Hi we have a car loan through GE. I can't find agreement (was with car documents and now disappeared!!) we are waiting for a copy from GE. I'm not sure if ours is HP or loan. everything was supposed to be sent on 18th and still not arrived. I'm not sure how this will affect my IVA

Our car finance was with GE Money, we tried to sell it as it was on a fixed sum loan agreement, it was flagged as being on HP. After phone calls to GE Money to confirm that they had no financial interest in the car, therefore no claim to it if we defaulted on the payments, I requested that the flag was removed, which it was. I have since sold the car back to the dealer and bought a cheaper one, the remainder on the loan has gone into our bankruptcy. These companies apparently sometimes incorrectly flag the cars to make it difficult to sell before the loan has been repayed.

where would this leave me in IVA process as I think this maybe noted as HP, if not its another £5000 on debt but another £195 towards IVA payment suppose..

Just chased up agreement and balance, was sent 18th said would sent another copy. call centre is India wonder if thats how taking so long to get here!!![:o)]

Motorloan products are unsecured loans - not HP. It will be flagged on HPI but they will remove it under preasure.

Thanks for all of the replies, its really helpful.

So, if we then have a vehicle worth £7500 approx, for a family of 4, can we be made to sell it by anyone of the creditors or the supervising IP given that there is no other financial interest in it (i.e is this what is classed as disposal of assetts??).

Obviously we need a reliable car to get husband to wrok, and also enroute the children dropped off at school.

Many thanks
flowerpot

It would be unlikely at that level, as the car has to last the five years of the IVA so needs to be in relatively good working order.

What does your IP say about the value and they way he/she suggests it be treated in the IVA?

Melanie,

Thank-you for your quick reply.

So far I've spoken to three different firms and each had extremley varying advice. I need to make further enquiries with a couple more before I come to a decision. I'm still pondering on the information.

Problem is, its an exhaustive process and I'm not in good health and found making enquiries last week has increased my stress levels which has had a direct effect on my medical condition.

I'm going to contact a couple of others starting from today, so hopefully I will have a clearer idea as to where things go from here.

Can you let me have your contact details as I wouldnt mind taking your advice in more depth!

Regards
flowerpot

My contact details are at the rear of my posts flowerpot.

Hi
Quote 'So far I've spoken to three different firms and each had extremley varying advice.'
Not very encouraging is it ?
Regards

I'm still confused as to whether my car is HP or unsecured loan with GE. Made 3 requests for documents and still not rec'd. Need to send to Melanie, this is driving me insane..
Don't think must have rec'd original from car saesman as nothing in folder with logbook etc. and everything is always together. What a nightmare[:(!]

Hi Angela18
Storm is an expert in this area so you can rest assured that it is an unsecured loan.The HPI flag is used to advise GE when people try to sell the vehicles.As he states it should not be registered as being on finance and should be removed

so this needs to go off to Melanie also then (if it eventually turns up!!)

I will need a copy of the actual agreement so that I can check out the terms and conditions of your contract with the finance company.