Debt Questions

Hi all, and thanks for looking, i've had a look around the site and can see that there's some good advice being handed out

I'll start from the top, are you sitting comfortably ?

I have just received a letter from a company called BRITISH CREDIT TRUST telling them i owe them £8,156.

Going back to May 2007 i passed my driving test, great. So nice a semi decent credit rating i went to the local garage and got myself a nice astra sri for £5,000. I think the charge for credit was around £5,000 ! However, i wasin a steady job at the time, i was earning goodmoney, i could easily pay the instalments.

Things went tits up by april 08, work was off and on and i ended up splitting up with the ex. So off i went to work in Appledor, North Devon.

Now, heres where it gets interesting. As the work was off and on previously i had missed apayment to credit trust, (£150 per month i think it was) and if i remember rightly i had informed them.

So off i went. 3 months later, AFTER 3 INSTALMENTS OF £150 i got a knock at the chalet door.

It was a pikey man with a pick up truck had a repo order in his hand and promptly took my car away.

I hadnt notified BRITISH CREDIT TRUST that i had moved address as i was basicaly 'on the road' working. If i had of known they had a repo order out i would of paid the amount owed ASAP as i was earning great money, i had kept bang up to date with payments.

Hence, leaving me with no car, hence not being able to work anymore (transport is essential, any contractor will tell you that) hence no money to pay them.

I think he wanted agrand there and then which i just couldn't do.

Now the car wasin decent shape, ok a couple of scrapes here and there but nothing major,

THEY SOLD IT FOR £1,950 !!!

So obviously i head back home, managed to get work, new car etc etc etc and of course thought why should i pay them anything ?

They got the car back, if i owe them anything surely its the balance of the amount they sold it for and the amount they lent me ? £3000

Surely this kind of practice is illegal ?

So yesterday a letter turned up, they have found me ! And i owe them 8 grand for a car they took off me ????

What the hell is going on with this country? If an alien came down and you told him this it would think what the hell is wrong with these people, its ridiculous !

Now, i dont know what to do here people. I'm on the dole at the moment, nothing doing work wise and have got a pot to piddle in.

What are my options ? Can they take the carwithout properly informing me ?

I've a good mind to ring them and say "yeah,i'll pay you the money back no problems so long as you get me a 52 plate astra sri and put it on my drive !"

Apologies for the ranting but the system is sick !!

Any comments or guidence would be greatly appreciated

Peace Out

oh dear, i know someone will have some kind of advice from you on here. All i can say is i think they have had you bent over by the sounds of it... how did they find you to reposses the car if you were working away from home though??

in situations like this repossessed cars are usually put to auction to be sold for whatever they can get. the company has no real reason to try to insist on a higher price because they know that they will simply bill you for the difference, so they dont care if they get £5000 or £50

however now that your unemployed its a case of making them an offer based on your personal and financial circumstances. usually £1pw or pm until your circs improve

Unethical ? Yes, illegal ? No .
However on any repossession , whether it be a car or a house when selling it, they have to by law, be seen to be getting the highest possible price, this though, as you can imagine is often very difficult to prove.
As Johnny73 Says just offer them £1 pw as you are on Job Seekers they cant refuse this offer, they will try, but cant.

I thought as much!!

I've just remembered some other info. I had changed the address to one in Devon, but i don't ever remember seeing any notice that they would reposess thecar. Surely they need to tell me before they do this ?

Thanks for the comments

Ethics .... Ethics,
Most DCA's think that this is a place down south - somewhere near thuthex ------------------ OK, I'll get me coat.

Thats quite good, well done

I've a good mind to take this to the top

i'll play devils advocate for a moment

there's a couple of things that will count against you. you admit to missing a payment, but also say you were earning "great money" why didnt you pay off the missing months payment? that way you'd have protected yourself.

you might want to read through your contract to see what the terms were. you signed up for the credit; if you didnt keep to your end of the deal - making payments on time- what did you think would happen?

it is unethical and i'd be as unhappy as you are, but you did agree to the finance terms

should you ever go to buy a car again consider other ways of raising the cash, eg a bank loan as they wouldnt have the money secured against the car and you wouldnt have it repossessed

It might be pertinent here to explain how Hire Purchase and Conditional Sale agreements work.Hire Purchase is exactly what it says - the goods are not owned until the final "option to purchase" payment is made. In conditional sale agreements the object is owned but there are various conditions which mean it cannot be sold until final payment made.

If you have paid less than one third of the total amount owed under the agreement - including deposit you have made etc - then the car can be repossessed if you fall into arrears. There is no need to take somebody to court nor is there any need to warn someone they are coming to collect it. However they do have to have issued the default.

Between one third and one half being paid then the lender has to take the person to court to repossess the vehicle and unlike a normal money only claim there has to be a hearing. The lender does not want to repossess the vehicle so will agree to reinstatement of payments plus something to repay the arrears - hopefully within the original time frame.

Thirdly after one half of all the money paid owed under the agreement the car can be handed back in good condition with nothing more to pay.

This is a very simplistic way of explaining it but does cover the basics.

However, what many people do not realise is that under the Consumer Credit Act a person has the right to voluntarily TERMINATE the agreement in writing, hand back the car and the is only liable for half the total amount owed under the agreement plus anything for damage to the vehicle. They would also need to deliver the car to a mutually agreed place and the words termination have to be used in writing. On the agreement there should be a box explaining one's rights to do this. It also has to be done BEFORE any default is issued. This is good to know as it mitigates the amount needed to be repaid as with a surrender or the car being taken one is liable for the full shortfall plus their fees.

However, in no circumstances does one get to keep the car if you do this.

I think the OP may have been caught in the under 1/3 rule.

OP ?

"Original Poster " i beleive.

Yes original poster!