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RJM Law
RJM Law, Lawyer
Category: Law
Satisfied Customers: 3443
Experience:  LL.B (Hons)
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My question is related to a car lease that I took in 2017.

Customer Question

Hi, my question is related to a car lease that I took in 2017. It was a 48 month lease due to end June this year, However I was given a 3 month payment holiday due to covid so was subsequently told the car would not go back till September. Not sure how this works as I have effectively had 3 months with no payments. Anyway during the second covid lockdown I fell behind on payments and due to not meeting payment demands they put out a repossession order on the car in August this year. I called as I was now in a position to pay off the lease in full including arrears and holidays so I asked if I could pay the full balance left and have the repossession stopped but they have refused. To begin they wouldn't even give me the outstanding balance but have now given this verbally but still not given it in writing despite me asking for it several times now. I currently still have the vehicle as it was booked into the garage to have some small scratches repaired and mot done prior to going back. My question is will it make any difference to my position if I pay the balance on the lease and then hang onto the vehicle until the 22nd of the month when it is due to go back? I am only concerned at the moment re any additional charges they may try to add on if I willingly hand it back to the repossession agent. I feel like they seem more desperate to get the car off me than the outstanding balance which they are no longer even asking for even though I am chasing them now to try and pay it which seems very strange since it is due back in two weeks anyway,
JA: Where are you? It matters because laws vary by location.
Customer: Scotland
JA: What steps have you taken so far?
Customer: I have put in an official complaint to the lease finance company. I was also not offered a second set of payment holidays which I believe should have been made available to me which would have massively changed my position. I have also requested the outstanding balance on the lease in writing several times which they have still failed to give.
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: Not that I can think of just now
Submitted: 13 days ago.
Category: Law
Expert:  RJM Law replied 13 days ago.

Welcome and thank you for choosing our service, I will be the expert assisting you with this matter today.   I appreciate this matter is important to you and I shall try to resolve it as precisely and quickly as possible for you today.

Please note; there may be delays between messages as the experts on this website all work on a third party basis and are not online full time however, I shall endeavour to respond to your question as soon as possible.  I look forward to assisting you in this matter.

Thank you.

Expert:  RJM Law replied 13 days ago.

Thank you for the question.  Unless expressly stated in the contract the company were not legally obligated to give you a finance holiday.  Sadly, the courts have been very clear that the pandemic does not have an effect of the legality of contracts, therefore if someone was unable to pay a contract they would still be breaching said contract, despite Covid causing them to not have an income.  Therefore the company have taken the position that you have breached the contract and exercised their right to terminate.  Therefore if you keep the car, they will likely charge you further fees (which will be outlined in your agreement) to obtain the car back.  Therefore financially it would be better to hand the car back when asked.  I would read carefully through your agreement to see what the position is here and what you are required to do.  If you are not happy with their dealings, you can escalate you complaint to the consumer ombudsman.

Hopefully, I have answered your query in a way that is simple and easy to understand. If anything remains unclear, I will be more than happy to clarify it for you. In the meantime, thank you once again for using our services.

Should you require any further assistance on this matter, please do not hesitate to post a further questions for additional assistance.

Kindest Regards.