Car reposession

[poshservices]

My son was unfairly dismissed from his employment in April. He is now in full employment again. During his time away from work he ran up a debt on his car finance with Black Horse. Black Horse have passed the debt to a collector. My son has offered to pay all the arrears and continue regular payments. The debt collector has advised him this should be o.k. but when he attempted to pay the arrears Black Horse have insisted they want the full amount od the debt. This seems ridiculous as the car will be repossessed and sold for less than the outstanding amount of the loan. My son will be without a car to get to work and will not be able to meet any gap in what is left of the loan after the car is sold. Is there any action we can take to stop them demanding the full amount or respossessing the car?

[Oneeyedvic]

Unfortunately, once an agreement has fallen into default, the finance company has the right to demand payment in full.

For it to have gone to debt collectors, I am assuming it must have gone around 4 months or more into default.

If they will not be reasonable, there is nothing you can do.

As a thought, is it not possible for you or someone with a good credit rating to buy the car from him (clearing the finance outstanding) with a personal loan or similar and then for your son to pay you back directly?

If your son was unfairly dismissed and won a court case proving this, then it may be best if he puts a note on his Expreian and Equifax files in case he needs to apply for credit - as undoubtably Black Horse will have registered a default against him which will impair his chances of getting credit.

[Loosehead]

You can only appeal to their common sense. They are within their rights demanding full settlement however you have to convince them they will lose money by doing what they are proposing. Write to them explaining the situation as you have here, I'm confident that they will have someone with a modicum of common.