Quick car finance question

pudzey101

Hi posting this for my partner , received a Letter stating that she is in arrears of 846euro , and that there terminating the contract and want payment and the car returned . She has the car 5 years this year , only missed 3 payments within those 5 years and always phoned company to give reason of missed payment .

She can't contact them untill Monday and is stressed out over this issue , can anyone clarify or give me an idea of what more than likely will happen. ?

3 missed payments in 5 years doesn't seem to bad but could she reason with them and resolve the issue ?

Any replies appreciated

mphalo1

pay the money and return the car needing a lovely new paint job plus lots of other bits and pieces

pudzey101

No serious answers please , car is in A1 condition now all fixed up and corrected .

368100

Legally, an asset that is financed under a hire purchase agreement cannot be repossessed once at least 1/3 of the scheduled payments under the agreement have been made....

pudzey101

@368100 what's that mean in simpler terms ? 350 a month was the agreement ,, 1 or 2 months they recieved maybe 200-300 as couldn't get the 350
Together , about 1600 left to clear the car , what will happen ?

mickdw

pudzey101 wrote: »

@368100 what's that mean in simpler terms ? 400 a month was the agreement ,, 1 or 2 months they recieved maybe 200-300 as couldn't get the 400
Together , about 1600 left to clear the car , what will happen ?

Maybe get a credit union loam to clear it off and schedule a lower payment over maybe 1 year.

pudzey101

She doesn't want to pay the lower payments as she wants to pay the full agreed amount for the rest of the agreement , but the letter she recieved saying that the contract has been terminated is it officially terminated for is it just a warning ??

368100

pudzey101 wrote: »

@368100 what's that mean in simpler terms ? 350 a month was the agreement ,, 1 or 2 months they recieved maybe 200-300 as couldn't get the 350
Together , about 1600 left to clear the car , what will happen ?

It means that say the finance agreement was over 3 years...after 1 years payments have been made then car cannot be repossessed. You need to to check the agreement though as this is only applicable to hire purchase and not a lease agreement.

pudzey101

368100 wrote: »

It means that say the finance agreement was over 3 years...after 1 years payments have been made then car cannot be repossessed. You need to to check the agreement though as this is only applicable to hire purchase and not a lease agreement.

Ok but if she rings company Monday and agrees to up the payment from 350 to 450 a month would they be willing to cooperate with her as she has the car since 2009 , and is very stressed over this matter

368100

pudzey101 wrote: »

Ok but if she rings company Monday and agrees to up the payment from 350 to 450 a month would they be willing to cooperate with her as she has the car since 2009 , and is very stressed over this matter

I would be very confident in saying yes that they would. Sounds like this letter is just a threat and they would be crazy to go down a legal route rather than work with someone who wants to pay. I work on this type of finance every day. Tell ur missus to relax and enjoy her Saturday nite. She'll get it sorted Monday without much fuss.

skyhighflyer

pudzey101 wrote: »

Hi posting this for my partner , received a Letter stating that she is in arrears of 846euro , and that there terminating the contract and want payment and the car returned . She has the car 5 years this year , only missed 3 payments within those 5 years and always phoned company to give reason of missed payment .

She can't contact them untill Monday and is stressed out over this issue , can anyone clarify or give me an idea of what more than likely will happen. ?

3 missed payments in 5 years doesn't seem to bad but could she reason with them and resolve the issue ?

Any replies appreciated

If she's paid more than a third of the total amount outstanding under the HP agreement then they can't take the car back without going to court. From your post, it seems like she's paid well over one third of the amount. If the payments were €350 a month over five years I presume the car was about €25k new, so if there's only €1600 left then you're well over the one third threshold.

Check out this link:

http://www.citizensinformation.ie/en/money_and_tax/personal_finance/loans_and_credit/hire_purchase.html

In basic terms, they can't take the car back without going to court, which means the car won't be lifted this weekend or anything like that, so don't worry. In any event, they're almost certainly not going to court over €1600 anyway.

Without knowing the terms of the HP agreement, it's hard to guess why they terminated the agreement when the bulk of the money's been paid. Hold tight till Monday, call them and clear this up. If no clear answer, make an appointment with MABS\ citizen's advice.

pudzey101

25k yeah your spot on !! Thanks a million lads yev put her mind at ease now and will sleep better tonight !! She said thanks to all so much ?

skyhighflyer

Not a bother Like I said, should be easy to sort out on Monday. If there's any hassle, MABS \ Citizens Information and the Free Legal Advice Centres are around to advise on stuff like this for free and you can bring the HP agreement to them and see what they say.

mphalo1

and if all else fails