Leah-Lacie Posted August 12, 2011 Share Posted August 12, 2011 Why not? You may be able to re-negociate the finance. The OP has taken on the finance herself. If she defaults then the finance company can repossess the car. The OP will find it almost impossible to get a loan/mortgage in the future if this happens. Setting up the DD will guarantee that the finance is paid every month. I would have told him tough and hand the car back. OP is now paying to cover the arrears that are already there. If a DD is set up, they will probably try to take the whole outstanding amount. It might be fine once the arrears are paid off, but I wouldn't do it now. Link to comment Share on other sites More sharing options...
*Peaches* Posted August 12, 2011 Author Share Posted August 12, 2011 The finance runs out in October, so seemed silly handing it back for the sake of a few more months. Finally got through to someone who would listen and sorted the payment. Point of fact is still they are now trying to extort a further 590 out of me by the end of the month even though I have just paid 300, that wasn't in the agreement. I have made notes of times when I spoke to people, and have told him to report them. Its Peugeot Finance Link to comment Share on other sites More sharing options...
Chris_Sleeps Posted August 12, 2011 Share Posted August 12, 2011 Why not? Direct Debit is brilliant for utilities and phone/internet. For servicing a debt it gives the creditor too much control over how much they take. It's a terrible idea, even more so if there are arrears. A standing order is a better option if one has a regular income. Then you are in control of what leaves your bank. Equally though the option of paying over the phone/internet/cheque is a good option if money is tight and sometimes payments can't be afforded. That gives even more control of what is leaving the bank. The OP may indeed find herself with a bad credit history. It was essentially a terrible idea to register herself as liable. Link to comment Share on other sites More sharing options...
Leah-Lacie Posted August 12, 2011 Share Posted August 12, 2011 Oh so its a 'proper' company, not one of these 'sub sub sub prime lenders' like Welcome Finance? I'm surprised! Link to comment Share on other sites More sharing options...
GrannyGranny Posted August 12, 2011 Share Posted August 12, 2011 No advantage to either unless they give you a discount. Popping a cheque in the post is still a better option if varying people are paying the debt, or varying amounts can be afforded each month. The finance will be a set amount each month. If the OP varies the amount every month the finance company will soon get ****** off and this can lead to them cancelling the agreement and repossessing the car. Credit rating for OP will then plummit. Infact it looks like they are peeved of already hence demanding 2 payments to make up the arears. Link to comment Share on other sites More sharing options...
Chris_Sleeps Posted August 12, 2011 Share Posted August 12, 2011 The finance will be a set amount each month. If the OP varies the amount every month the finance company will soon get ****** off and this can lead to them cancelling the agreement and repossessing the car. Credit rating for OP will then plummit. Indeed. That makes it a priority debt, and if repossesion can be avoided then it should be. Equally though the creditor can be reasonable, and if the debt is being serviced then their interest is still being added and they are still making money. I doubt they'll reposses the car in such a situation, but it is a possibility. Link to comment Share on other sites More sharing options...
barleycorn Posted August 12, 2011 Share Posted August 12, 2011 The finance will be a set amount each month. If the OP varies the amount every month the finance company will soon get ****** off and this can lead to them cancelling the agreement and repossessing the car. Credit rating for OP will then plummit. Infact it looks like they are peeved of already hence demanding 2 payments to make up the arears. If they have paid off more than a third of the value of the car then the finance company will need a court order to repossess the car. This is something they unlikely to get if regular payments are being made. http://www.insolvencyhelpline.co.uk/legal_issues_explained/car_repossession.php jb Link to comment Share on other sites More sharing options...
Leah-Lacie Posted August 12, 2011 Share Posted August 12, 2011 If they have paid off more than a third of the value of the car then the finance company will need a court order to repossess the car. This is something they unlikely to get if regular payments are being made. http://www.insolvencyhelpline.co.uk/legal_issues_explained/car_repossession.php jb I was just about to say that, they've only got 2 months left, and I assume it was over 3 or 4 years? Link to comment Share on other sites More sharing options...
*Peaches* Posted August 12, 2011 Author Share Posted August 12, 2011 yes, 4 year agreement Link to comment Share on other sites More sharing options...
Leah-Lacie Posted August 12, 2011 Share Posted August 12, 2011 I would ignore them now until the 25th (when you have agreed to make your next payment) as its not long, and then I'd pay the amount that they've been asking for today. As posted above, they will need a court order to repossess, and its only 2 weeks. Might leave a slight bad mark on the credit history, but with only 2 months of payments left, I wouldn't care too much. Probably bad advice from me, but thats just what I'd do. Link to comment Share on other sites More sharing options...
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