Santander Fixed Sum Loan for car

[FightToTheEnd]

We bought a car from a main dealer nearly two years ago and this was financied by Santander.

 

Now the loan was a "fixed sum loan agreement" which in my eyes makes it an unsecured loan.

They didn't want to offer us the benefits of VT etc as one would get with HP

and so in return they get no rights of ownership or repossession - fine as far as I'm concerned.

 

Fast forward to last month and we weren't able to make the repayment

 

wrote to them and explained our financial problems.

 

They wrote back and offered to allow us to "volutary terminate" (for a fee of £70 no less)

and they would sell the car at auction and we would owe the balance.

Alternatively they would let us sell the car ourselves and send them the money!

 

I wrote back and explained that as this was a fixed sum loan they had no more ownership of the asset than anyone else

and I would not be taking them up on their kind offers!

 

They have written back and said that they are completely unable to help whilst we still own an asset which could be sold

and they will continue their collection procedues in earnest and will not consider any kind of payment offer.

 

I'm pretty sure this is completely against OFT guidelines and that they should not suggest we sell assets to repay debt;

equally they should not point blank refuse to help us when in financial difficulties.

 

Just wondering if someone would agree with my OFT thoughts and perhaps point me in the direction of something to quote at them?

 

TIA

[allison6564]

I kow this is an old post but I'm in the exact same position now and was wondering what happened with your case. I'm at my wits end x

[FightToTheEnd]

Not good news really I'm afraid. Well, not all bad but you will make your own mind up.

 

they kept up to their promise,

they but some "big gun" solicitor on the job who would not stop,

despite offering a Tomlin order and/or a second charge while we sold our house.

 

Nothing was good enough and they would have their CCJ and charging order.

 

They now have that and I effectively have an interest free, unsecured loan over 14 years as we have no intentions of moving now.

I do think this was foolish on their part as we were willing to sell up to sort our debts and so they could be repaid now.

 

As we now have a CCJ the rental market would be very difficult so we decided to stay put.

 

They did make some noises about an order for sale, but I think we both knew this wouldn't happen and they left that alone.

 

I now pay every month by SO and they do leave me alone, but I did manage to get an email from the solicitors

advising that if I maintained the agreed monthly installment then they would take no further enforcement action.

 

Also they made no attempt to repo the car and we actually no longer have it now in any case,.

It don't have an HPI flag on it either which surprised me (although they would have been obliged to remove it in any case as they had no legal right to claim an interest).

 

Best of luck.

[allison6564]

Well I bought my car in June 2010 and payments are around 350 per month in Jan had to stop payments and I'm at the stage now where I have offered 200 pm but they have terminated and defaulted the agreement. I have written to them stating I think this is a fair offer and I've set up a standing order starting 1st may....will have to see what they do next .

[FightToTheEnd]

I kept paying "something" every month but it made not the slightest difference to their actions. If you could use the £200 elsewhere then I'd give that some thought as I think they'll go for a CCJ whether you pay or not tbh.

[dx100uk]

it puzzles me why you did not demand the CCJ/CO?

 

no judge would award more than you could pay

as long as the car was not named on the agreement.

 

something funny gone onhere

 

dx

[FightToTheEnd]

Not sure what you mean?

 

They did get a CCJ/CO as they were initially given a forthwith order with the CCJ.

 

I didn't fight the CO too hard to be honest as from reading on here it was going to happen pretty much whatever I did?

 

The current monthly payment is an amount I offered and is affordable.

 

I offered a tomlin order and/or second charge in an effort to avoid a CCJ but they didn't accept?