Car repossession

[Cheesefreek]

What rights does a finance company have with regard to car repossession. We pay a fixed amount each month, sometimes a week or so late, but we always pay. Can they threaten us with removal of the car without any correspondence? I was given to understand that after paying over a third of the amount owing (which we have) that a finance company could not remove the car without a court order. Can anyone clarify the law in this matter? And please don't tell me we should pay on time. We would if we could.

[Ethel]

Clear and factual information here:

http://www.payplan.com/debt-library/repossessi ons-car-repossession.php

You are right in thinking that the car cannot be repossessed without a court order as you have paid over one third.

[JRB]

Technically the car is the possession of the Finance Company until the whole loan is paid off and they can move to repossess the car if you are only 1 day late with your payments. You are correct in thinking that once you have paid 1/3 of the loan the Finance Company would need to apply to the courts for a repossession order and they should serve you with a default notice first . Have you considered applying to the company to reduce your monthly payments if you are having problems?

[Oneeyedvic]

Firstly, is the car in your private names or in a limited company name. If it is in your private names and the amount loaned is under �25,000, then the agreement is a 'regulated' agreement and you have a lot of rights under the Consumer Credit Act. If it is outside the scope of the act (over �25k or ltd company) than you have none of these rights.

If the agreement is a loan agreement, you do not have the benefit of the 'thirds rule' mentioned previously.

Get a copy of your agreement and along the top should be the words "Hire Purchase agreement regulated by the Consumer Credit Act 1974".

If it does not say that, then you will have different rights.

Finance companies want their money - simple as. They will certainly imply (and quite often lie) about rules and regulations. and what they can / can't do to try and intimidate.

If you are constantly late paying your HP off (and have paid a third), then as previously noted the finance company will need a court order - and to be honest, the court will probably not grant one if you defend yourself and show that you are attempting to pay.

[Cheesefreek]

Thanks so much for your help on this. I've checked, and it is a hire purchase agreement. Yesterday I informed them that I would pay Monday, (when pay cheque clears) and she said "well you may not have the car on Monday". At least it would seem that can't happen. Never borrow from a finance company beginning with W and ending in elcome!

[Oneeyedvic]

Not sure if you are aware, but a few banks (Lloyds and Barclays spring to mind from memory) offer a service that you can draw money on uncleared wages cheques. (obviously if your wages cheque should bounce there will be charges)

Hope it helps.

[Loosehead]

Further to the above, do you realise you are making your credit record look bad by being late with payments? Even though you pay up eventually the lateness will show on your credit record making it difficult to get credit in the future.

[Cheesefreek]

Loosehead - I am aware of the credit thing, but I am quite relieved about that. If I am refused credit, then I won't ever be tempted to try. And if I am tempted, refusal will encourage me to save instead of borrow. My borrowing days are over. I appreciate your point, and thanks for pointing it out.

[madman06]

put it in a garage when they say they r coming,nothing they can do,only allowed to enter the car,not a garage,was told this by a debt recovery man who came for mine with �26 oweing on mine,he said get it in garage i cant touch it