Welcome Finance took car

[parki]

My friend took a car out on Finance With Welcome Finance after 2 years he fell behind on the payments due to no job.They have now repossessed the car .The car at the time was worth £4,995.He paid for 18 months £220 per month,now they are wanting £7,500 even though they have car back,can anyone shed light on this and would there be anything to claim back thanks.

[dollies01]

Hiya Parki

Tell your friend to send welcome a Subject access request.

This should include a copy of his agreement that, if possible you could post, for someone more knowledgeable to take a look at.

I assume he had ppi on the loan?

What caused his unemployment?

[PaulW922]

Sadly if the car was repossessed then the finance company, under the terms of a standard HP agreement can indeed ask for all the payments that would have been due. They will offset the value they obtained for the car at auction. I would advise your friend not to let this get out of hand - don't let it get to the outside debt collector stage - or even worse, with the debt sold off to someone else.

 

Do check the agreement to see if there is any 'stand alone' PPI or GAP insurance. Such things are frowned upon these days by the regulator.

[parki]

I failed to tell you that they sold the car at auction for £96.00 and has had no paperwork regarding this just a telephone call when they asked for the money which is still owing. Its disgusting letting a 4x4 go for that amount and then hound you for the money.He didnt want this to happen it was marital problems,loss of job blah blah.Thanks anyway for the advice much appreciated.