AAAAAAARGH!!!! FFS
Sorry just had to get that out first. Right here's the story

In December 2002 I purchased a car with finance for £5540 The total amount payable plus payment insurance was just short of £8000, my monthly payment was £244 spread over 48 installments

In 2005 I lost my job, and struggled to keep up the payments so I contacted the finance provider and went through my options one of which was to surrender the car, I apparantly could do this once £3923.04 had been paid. I checked how much I had paid and was told £5204.04 so that's what I decided to do, was to give back the car and be done with it.

Well fast forward to 2010, and I get a letter from a debt collection agency saying I owe them £7500, naturally I wasn't going to pay this and asked for proof and copies of everything. Well this morning I received a letter and copies of the agreement and statements, and have been informed that £81 a month was to cover insurances and therefore deducted from the amount paid, meaning I had paid £3892.56 off the finance, leaving me exactly £30.48 short of the surrender value meaning I owe the full amount plus interest for every day since 2005.

I feel like I have been stitched up here, if I had made one more payment on the car, I wouldn't have been liable for a penny, if I had been told this, I would of course have done this, and it wasn't explained to me at the time, now I'm by no means stupid when it comes to financial affairs so wouldn't have overlooked something like this so I feel like I have been mislead massively here, I've talked to the CAB who say I need to see a solicitor, but can I find one that deals with specific debt advice rather than just general IVA's and repayment plans. They are threatening me with bankruptcy if I don't pay and have offered me a settlement of £2000 if I pay by the 18th March, but I haven't got £2000 without borrowing it, and I really don't see why I should pay it. Is there anyone here who can give me advice or at least point me in the directoin of someone who can

Holy crap Mandy...they have waited 5 years and decided to chase for it..what are they playing at!

I have no idea legally where you stand, but it seems you have been given duff info

Hope you dont have to pay it

That sounds rediculous!there must be somthing you can do. Is there a money website like martin lewis thatcan help or if you were paying insurance that you weren't aware of there are companies that will fight to clear your debt.

I dont think that any judge in the country would look at your case and allow you to go bankrupt over this and would probably slap their wrists.

You are in a situation where they are likely to have not saved the phone call records, after so much time, which works to your advantage in a way, as it shows that they have probably waited this long so that they can try to screw you over.

I would send them the £30.48 (asap) with a letter telling them that its all they are getting, as you were misled, and ask them to prove otherwise.

x

I'm so angry it's untrue, I'm so careful with money now, I never go overdrawn, always pay off my credit card in full, have no credit other than my next account and to think that someone would try and make me bankrupt annoys me so much, I spoke to my OH and he said the same as you Laura that no judge in their right mind would go in their favour. CAB have advised me not to pay a penny as it consitutes admitting liability. I think I'm going to have to find a solicitor to write them a nasty letter telling them to fluff off

Just send the the 30 hun! For them to wait 5 years..tack on all those charges etc..is down right criminal. Even if this went to court..you wouldn't be stuck with any of it! Shame on those lenders for doing this to ppl! Big Hugs! xxx

Im prob wrong but I disagree with the CAB.....I would send the £30 odd quid shortfall with a covering letter saying that this is the matter closed, and that if they want to take you to court after leaving the debt accruing for 5 years.....then you know who the judge will side with.

With being bankrupt myself, ive dealt with so many of these idiots its untrue, and most of them back right off when confronted.

Could you ask the insolvency service for their opinion direct??? They are a fantastic resource for debt matters, and so helpful. They would tell you if there would even be a case to answer xxx

I am pretty sure there is a law for financial institutions that states they have to minimise their losses on loans so if someone is in default they have to make every effort to recover the money. They haven't by leaving it 5 years so you probably have that in your favour.

The car loan must have been through a finance company so they will be regulated by the FSA so you could always go to the Financial Services Ombudsman if all else fails

Sorry to hear all this crap is going on hon.

Can't really help but I do want to back up what CAB has told you. Definitely don't pay anything, even paying £0.01 could mean that you are accepting liability to this debt. I can't be 100% sure of this but I have seen a programme in the last year where this is the advice that was given to a couple and thankfully they didn't pay anything towards it and in the end, for whatever reasons, the debt was cancelled.

If you do pay something make sure you know for sure that this isn't you accepting liability for the whole debt.

Take care

xTx

Mandy, what month in 2005 did all of this come to an end?

Here is the Limitation Act 1980, which clearly states that if they havent contacted you for 6 years then you are not liable.

http://www.insolvencyhelpline.co.uk/debt_factsheets/liability_for_debts_and_the_limitation_act.php

It also has letters guiding you what to do.

x