Is Car Finance Unenforceable?

[Octagon]

Hi all, looking for some info and advice here. I live in Scotland. In 2008 I was granted finance for a car that was beyond my means. However I was 18, naive and keen to get on the road with my own set of wheels so went ahead. In 2010 I hit a rocky road, issues with work and personal life. It lead me deep into an overdraft with my bank where some of the car payments were missed over a period of time in 2010. Late 2010 my partner and I broke up and both left our address at the time as it was not affordable for either of us to stay at alone. In August 2011 the Car Finance company took a payment and never took any more after this. I now have a letter from a debt collector October 31 2016 stating I have an unpaid balance to the tune of £10,000 and I have 14 days to respond or they will pass the debt to a law firm. I still have the car. As the last payment was over 5 years ago and I have made no contact with them during this period, can it be considered statue barred under the Prescriptions and Limitations (Scotland) Act 1973?

I am now very worried. I have been paying for the financial mistakes I made when I was younger all through my 20's and now just as I was pulling myself out a hole I get this letter.

[nightwatch]

Re: Is Car Finance Unenforceable?

I know nothing about Scottish debt inforcment of car finance, but if you hold on will try and find some one that may help or point you in the eight direction , good luck with this xx

[MrsD]

Re: Is Car Finance Unenforceable?

Hi

You still have the car?

Did you at any time attempt to hand it back? I'm asking because car finance agreements are quite different from other credit agreements. Do you still have the paperwork?

[Octagon]

Re: Is Car Finance Unenforceable?

Thanks for the quick replies. Unfortunately I don't have any of the paperwork/agreement etc. Was all lost in the turmoil of leaving previous home and not having a permanent address for around a year and a half afterwards. I still have the car and I never attempted to hand it back as for long enough I assumed payments were still being taken. With so much going on at the time I stupidly buried my head in the sand and didn't keep track of my financial situation.

[MrsD]

Re: Is Car Finance Unenforceable?

can you remember what kind of agreement it was? Was it a straightforward loan?, hire purchase agreement? it's really difficult to help when we don't know what we are looking at. and so many of these companies had their own wee foibles written into their contracts.

Doesn't look like it has ever gone to a court as the car is still there, technically they could have repossessed it if it was that kind of contract. How have they found you? Have you been on to the CRAs? and have you phoned them or spoken to anyone?

[Octagon]

Re: Is Car Finance Unenforceable?

Sorry, should have included as much info as possible. My mind is numb over this. It was hire-purchase finance through the car manufacturer. At the end of the agreement the car should have been mine. I've never received anything from the court, there are no CCJ's against me. I don't know in which manner they have found me but I have credit at my current address such as phone bills etc. I haven't spoken to anyone or acknowledged it as of yet.

[MrsD]

Re: Is Car Finance Unenforceable?

OK, I think the wisest thing to do is to lie low at the moment, they cannot be sure that you are you if you get my drift. Most of the cases I've turned up have handed back the car, the fact that you still have the car may well be a complication. and that's possibly how they have traced you, through the car.

lie low for the moment and let me ask around.

[nanna58]

Re: Is Car Finance Unenforceable?

This is a puzzler ?

[MrsD]

Re: Is Car Finance Unenforceable?

some light reading Octagon BMW Financial Services (GB) Limited v Hart (2012)

[Octagon]

Re: Is Car Finance Unenforceable?

I also meant to add that the letter received was not from the original creditor but a company who has purchased the debt, who are threatening to pass the account on to another [law] firm.

[MrsD]

Re: Is Car Finance Unenforceable?

what exactly did the letter say, did it give you a range of options? Why are they sure you are you, remember you know you're you but not sure they will. Who is the letter from is it a DCA or a debt buyer, you can tell us it helps to have all the info.

[Octagon]

Re: Is Car Finance Unenforceable?

Letter is from a debt buyer "Link Financial" that says "Despite our efforts to contact you the balance of your account remains unpaid. We hear by give you 14 days notice that the account will be passed to MMS LLP without further reference to yourself. If you wish to avoid this course of action contact us immediately.

I don't know if they have got the address from the DVLA or via a credit reference agency or even which steps they can take to obtain my info. I have never corresponded or spoken with the company.

[nanna58]

Re: Is Car Finance Unenforceable?

Maybe best not to contact them , sit tight till someone pops in xxx

[Never-In-Doubt]

Re: Is Car Finance Unenforceable?

If you've not paid in 5+ years it is indeed statute barred. However the Cause of Action (termination / default) could affect the actual SB date. I'd think if you needed to reply to a legal threat, with a CCA (to buy time) you'd be alright.

Thing to remember, the car would retain the outstanding hpi marker so you'd be unable to sell it but similarly the finance company couldn't pursue you through the courts if indeed it is Statute Barred. It all depends on the Cause of Action so if it was me I'd stay off the radar a few more months - just to be 100% certain it is SB. If however you get a legal threat let us know ASAP. Don't respond to it until you've ran it past us first.

[Never-In-Doubt]

Re: Is Car Finance Unenforceable?

Sorry, should have included as much info as possible. My mind is numb over this. It was hire-purchase finance through the car manufacturer. At the end of the agreement the car should have been mine. I've never received anything from the court, there are no CCJ's against me. I don't know in which manner they have found me but I have credit at my current address such as phone bills etc. I haven't spoken to anyone or acknowledged it as of yet.

a car finance agreement is basically you borrowing from a lender who pays the retailer direct. It's still a loan of sorts; so in essence if they've not attempted to enforce it after so long they'll struggle to now. A CCA request could establish unenforceability or the default notice could be bad. Lots of reasons not to worry yourself at this stage.

The fact you've moved changes little; they've had ample time to do checks and establish your address, forgetting credit agencies they've got DVLA as you say. So I'd not worry; I'd not respond to link but as stated in my previous post, IF you get a legal threat let us know on here - where I'll likely suggest doing a CCA request then.