Debt collector Problem Please Help

Super-Rush

Right heres the story. My parents split up about 4 yrs ago. Two years previous to that my mother took out a load to buy a new car for my dad. He was supposed to be paying the loan every month but wasn't (one of the reasons they split). The car was then transferred into my name and it was sold on. Ford finance then hired a collection agency to look for the debt. My mother made an offer of 40 euro per month which the agency refused and are demanding she pay 50 per week which she cannot afford. They told her that she needs to cut down on the amount she is paying for her other loans and that way she can give them what they want if not they will take an order out against her and have her sent to prison. Now i have two questions, first is, A friend of mine sells repossesed vehicles for Permanent TSB and he told me that TSB are only entitled to look for half of what is owed? Is this true? Secondly, my mother made the collection agency an offer of payment, can they refuse this offer? My feeling is that if this was to go back to court a judge would say 'well she made an offer and you refused, so take it or leave it' I'm stopping myself from gettig on the phone and giving the guy she spoke to the bollicking of a lifetime. Any advise would be appreciated as she is scared sh1tless and does not know what to do. Thanks in advance

nuac

Talk to MABS or a solicitor.

focusing

Rest assured, they can't send anyone to jail.

And they can't even seek a judgment or instalment order from a court. Wait until you get a solicitor's letter before you worry about that.

Talk to MABS about how best to structure the debt and then approach the finance company directly, as they may be the organisation you actually owe money to.

If any of the following section of the Non-Fatal Offences Against the Person Act was breached, then contact the Gardai.

"A person who makes any demand for payment of a debt shall be guilty of an offence if—

(a) the demands by reason of their frequency are calculated to subject the debtor or a member of the family of the debtor to alarm, distress or humiliation, or

(b) the person falsely represents that criminal proceedings lie for non-payment of the debt, or

(c) the person falsely represents that he or she is authorised in some official capacity to enforce payment, or

(d) the person utters a document falsely represented to have an official character."

Super-Rush

She talked to her solicitor already and told her to arrange payment of 40 a month and the solicitor made the agreement of 50 a week, which far more than she can afford. Also her solicitor told her that MABS will tell her to reduce the amount she is paying on her other debts. I am totally bewildered

Schuhart

super-rush wrote: »

They told her that she needs to cut down on the amount she is paying for her other loans and that way she can give them what they want if not they will take an order out against her and have her sent to prison.

There's a bit of background about what they are getting at here. Put simply, its not so much that they can put your mother in jail for the debt. But if the Courts rule that she's to pay the €50 a week and she doesn't, then she can be jailed for contempt of Court.

Its a process that gets criticised for being old fashioned. But, tbh, in the current climate (and given our business culture) its sort of necessary otherwise everyone would be claiming they can't pay.

super-rush wrote: »

She talked to her solicitor already and told her to arrange payment of 40 a month and the solicitor made the agreement of 50 a week, which far more than she can afford. Also her solicitor told her that MABS will tell her to reduce the amount she is paying on her other debts. I am totally bewildered

Could the solicitor make an agreement without your mother's instructions? (I simply don't know).

I know it can be difficult to get bewildered relatives to give clear accounts of what the position is. But is the situation that she has already had an enforcement order taken out against her?

jahalpin

super-rush wrote: »

The car was then transferred into my name and it was sold on.

The finance company may be being a bit unhelpful due to the fact that you sold a car that didn't actually belong to you or your parents. Under a finance agreement, the car usually belongs to the finance company until the last payment is made.

A judge is likely to take the fact that the car was "sold on" into account if the case got to court and is unlikely to be sympathetic towards your case.

Super-Rush

The finance company may be being a bit unhelpful due to the fact that you sold a car that didn't actually belong to you or your parents. Under a finance agreement, the car usually belongs to the finance company until the last payment is made.

A judge is likely to take the fact that the car was "sold on" into account if the case got to court and is unlikely to be sympathetic towards your case.

The finance company was calle to come take the car away and it sat there for nearly a year and they never came looking for it. two years after that they decided to come looking for the money.

Schuhart

super-rush wrote: »

The finance company was calle to come take the car away and it sat there for nearly a year and they never came looking for it. two years after that they decided to come looking for the money.

I don't know about such things, but it sounds a little like they really just want people in arrears to restart paying the loan. I'd guess the car is less use to them than the folding stuff and if they have to get all nasty and legal I take it that any possibility of profit is gone, so its just about damage limitation.

Do these agreements have any provision for termination? I mean, as I understand it, if you've a mortgage you can sell the house but have to pay your bank back first and if the price of the house has fallen below the value of the loan, you've to repay that too. Is there any similar story about what happens if I (say) want to get rid of the car after six months - but give the finance company whatever they are due?

Super-Rush

Don't get me wrong, she wants to clear the debt but cannot afford the payments the are demanding and after talking to her earlier it sounded like the guy was pretty cheeky towards her and basically laughed at her when she said she would pay it monthly. She offered to pay what she could afford and they refused. A little is better than nothing at the end of the day. Its wrecking my head and i can only imagine what its doing to her. Thanks for all the replies btw, very much appreciated.