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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 51239
Experience:  Qualified Solicitor
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I have a credit agreement for a car which I have fallen into

Customer Question

I have a credit agreement for a car which I have fallen into arrears with. They are proposing to terminate the agreement and take back the car. The credit agreement was for £28,430.80 and to date I have paid £19,988.08. The arrears are £3,455.92. What options are open to me? Thanks...
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

Expert:  Ben Jones replied 1 year ago.

How long ago did you take out the initial agreement? Please can you also tell me many payments you have missed to date? Thank you

Customer: replied 1 year ago.
Hi Ben - I took the agreement out in June 2012 and the last payment I made was back in November 2015, (10 payments).
Expert:  Ben Jones replied 1 year ago.

OK, thank you for your response. I will review the relevant information and laws and will get back to you at the earliest opportunity. There is no need to wait here as you will receive an email when I have responded. Also, please do not responded to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you.

Expert:  Ben Jones replied 1 year ago.

Apologies for not getting back to you sooner, I experienced some temporary connection issues and could not get back on the site until now. All appears to be resolved now so I can continue dealing with your query.

When you have purchased a car under a credit agreement, if you fail to maintain the repayments the finance company may legally re-possess the car. You do get some protection if you have paid off more than 1/3 of the total value, in which case the finance company would be required to obtain a Court order in order to be able to repossess the car. However, the main point is that until you have repaid the full amount under the agreement the car remains the property of the credit company and under the terms of the agreement they are able to re-possess it and sell it to recoup the debts you owe in relation to it.

So in the first instance you should try and negotiate with the credit company – explain why you are unable to keep up with repayments, try to agree a new repayment plan – they may be agreeable to accept a reduced repayment amount if they know you are going to continue paying and it may be easier than them having to go to court to get an order for repossession. If no amicable agreement can be reached and they go to court, you will still be able to try and raise an argument as to why a repossession should not be ordered, for example if you rely on the car for important things, like because you are disabled, if you cannot get to work via any other means and in general it would place you at significant inconvenience not having the car.

I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you