Finace advice needed asap

[mikeyd1]

Hi guys this is whats happened my mum bought a car 18 months ago she put a 1000 pound depost down and finaced 3 years of 234 a month. She got a letter today saying its all payed up and she now owns the car but thought she still got 18 month left of payments. She rang them and they say its all been payed off and ending payment was 234. What is going on all coments and advice please. Thankyou in advance

[alexp999]

I'd dig out the original credit agreement, should all be on there.

[mikeyd1]

She has on the old one it said 36 month of 234. Which was dated on feb 2015. But got my local branch to check aswell and he saying that its coming up all paid. Thanks for reply alex

[alexp999]

Old one?

Have you worked out the monthly payments plus deposit compared to the agreed/invoice price?

[mikeyd1]

Sorry meant the original what she got when getting the car the car cane to 9400 she put down a 1000 and paid 18 month of 234. She has rang them and they said its all paid and i poped in to local dealers and they said its all paid i hat to ask in there she wanted to change her car and the offer part ex at 5500 and said she does not owe any finance

[alexp999]

Who was finance with and have they stopped taking monthly payments?

[mikeyd1]

Ford credit and they said last payment was out on the second and theyre sending a conformation letter and to cancell direct debit at the bank so not to cause inconveniences

[alexp999]

Last payment is normally £10 higher for purchase fee. Was it?

[mikeyd1]

He said last payment was 234 so its the same. And he said u now own  the car

[alexp999]

I don't get it.

So you've spoken to Ford finance and they said it is all paid off? Could they explain why it is paid off early?

[mikeyd1]

Didnt ask she just ask what was the last payment was and the extra 10 pound was on her first payment

[alexp999]

I'd be asking for an explanation, last thing you want is for them to come asking for it later.

Normally there is £10 finance setup fee at the start, and another £10 purchase fee at the end. Should all be on the credit agreement.

[mikeyd1]

I dont no what to tell her to do i did say ring them and she did that was when they said u now own the car. If there is a error on there part surely thats their problem and the car is now ahowing as no outstanding finance. 

[alexp999]

I'd get her to give one of the free credit checking websites a go.

That'll show the history and latest balance against her credit file.

I don't know where she stands legally if they've made a mistake... might be worth calling CAB.

[mikeyd1]

Thanks alex its a hard one if it was u would u dig deeper or get a new car??

[alexp999]

Dig deeper, the finance does not go with the car, it's against the person. Car is just used as security.

I would want to know what's happened and why. If it's a mistake then ask for it in writing that they'll not ask for any more at a later date.

Otherwise if you bury your head it could come back to bite you.

[Joss max]

Be very careful Mikey. something does not add up here.  Do nothing until Ford direct confirm in writing that the car has indeed been paid off.

Do not cancel your direct debit either. If Ford direct say the cars paid for, then its up to them to inform Credit ref co to mark it as such. ( this could take up to 6 weeks) Ford direct should be the ones to cancel the direct debit.

Go check free credit ref agency and keep an eye on things.

Keep us informed

[mikeyd1]

22 minutes ago, Joss max said:

Be very careful Mikey. something does not add up here.  Do nothing until Ford direct confirm in writing that the car has indeed been paid off.

Do not cancel your direct debit either. If Ford direct say the cars paid for, then its up to them to inform Credit ref co to mark it as such. ( this could take up to 6 weeks) Ford direct should be the ones to cancel the direct debit.

Go check free credit ref agency and keep an eye on things.

Keep us informed

Will do its wierd ive never heard of anything like this

[mikeyd1]

And ford is happy to take in part ex they checked the finance and said it was all paid too

[Joss max]

Get it in writing

[mikeyd1]

Just now, Joss max said:

Get it in writing

They are sending out a conformation letter

[StevenST13]

To be fair if they send a conformation letter that the car is paid in full and your mum now owns the car. Then they legally can not take anymore money for that car and have no legal right to the car anymore or any further payments. Then can come along in 6 months and try and will get nowhere as they have legally handed the car over to the now legal owner of the car. A court or debt agency wouldn't even bother with it if they tried as they have now forfeited all legal right to the car and payment. That's as far as I am aware but it is worth being safe just incase. 

[dave_k]

Get confirmation in writing.

[alexp999]

If they write and say it is now yours that is one thing, but the finance is only secured against the car.

The loan is against the person.

i.e., they can't stop you selling/part exing the car, but could still come after you for the money.

[StevenST13]

I've actually checked in to this with a friend of mine that deals in finance. Basically everything I've said in my previous post is true. Once they have given written confirmation that the account is clear and signed the car over to you. Then they have no legal right what so ever to chase you for anymore money or reposes car. As they have now given up all legal right to any further payments or action being taken against the person.