Vehicle finance struggles - MotoNovo

[Shelley181146]

I write on behalf of a family member who I will refer to as Chris.

 

Chris Purchased a vehicle on HP finance with MotoNovo in Summer of 2016 the figures below show the original agreement figures.

Cash price: £11,289.00

Interest: £2807.40

Optional option to Purchase Fee: £1.00

Overall total (inc OPtional option to Purchase Fee) £14097.40

60 x Instalments monthly: £234.94

 

Payments were regularly maintained for 2 years before getting into financial difficulties due to employment issues.

Balance as at July 2018 £8966.61

 

Charges have been added to the account for:

1) unpaid direct debits - £5.00

2) default notice fees - £15.00

3) default interest charges - various - ranging from £3.30 - £10.85

4) Legal Charges fee - £488.00

5) Repossession fee - £330.00 (will explain this later on)

6) Judgment for Delivery of Goods order (suspended)  - £583.00

 

In February this year they applied to the courts for a ROG order which was suspended as Chris provided an income & expenditure sheet with proposal to retain the vehicle as it was necessary to travel nationally in connection with a new job, at that time.

Payments were agreed of £450.00 per month on 28th.

 

The first month was pro-rata because he joined the company part way throught the month, but the agents acting for MotoNovo said he had got to make up the shortfall over the coming months therefore Payments made were as follows:

6th Mar - £100.00

18th Mar - £525.00 - Chris advised his GM was terminally ill, so reduced his hours at work/unpaid leave/increased travelling costs couldn't make April's pyt

15th May - £525.00

10th Jun - £450.00 - Chris's GM passed away.

21st Jun - £75.00

28th Jul - £450.00 

2nd Aug - £75.00 

 

- Agents called 31st July to repossess the vehicle and managed to liaise with the solicitors who confirmed that all they required was £75.00 to prevent repo.

However, they called again on 8th August to repossess the vehicle unless £525.00 was paid.

 

Got in touch with solicitors who agreed to move forward with pyts of £500 per month for 12 months, then further pyts of £450.00.

As it was their solicitors error between internal communications should Chris be responsible for the £330.00 repo charge?

28th Aug - £500.00

 

The current balance as at today is £6843.82 (with the exception of £330.00 repo charge and £583.00 court charges)

 

Now, other developments have occured in Chris's life which looks like he will be banned from driving soon but wants to keep the car as his GF is hoping to pass her driving test and will use the vehicle (but I need to look into the legalities on that, but not to confuse this post that can wait for now) Chris wants to retain the vehicle.

 

What I thought was, if Chris were to get this back into court to request a variation order how long would the process take and would he still have to maintain the repayments at the current rate until the court hearing date?

 

Which form should he complete on the Gov website? N245 or N244?  

I'm confused because I do not know the difference between them! 

 

Chris is trying to retain the vehicle and repay on lower instalments based on his new circumstances, but ensure that the repayment term does not exceed the original end date, be able to pay whatever fine is likely to be imposed from any potential ban so that when his ban is over, it will assist his budgeting for the inevitable increased insurance premiums.

 

Then, my next question is: If Chris is banned from driving and the vehicle is not in use, (parked securely on driveway) I know he can SORN the vehicle but what is recommended in respect to the insurance whilst the finance is outstanding? I think I know the answer, but would appreciate your thoughts please.

 

I'm sure this may pop up some other questions but I have provided as much detailed information so that you can offer opinions, guidance, legalities etc.

 

Thank you in advance 

 

 

 

 

 

 

 

 

[dx100uk]

7 hours ago, Shelley181146 said:

1) unpaid direct debits - £5.00

2) default notice fees - £15.00

3) default interest charges - various - ranging from £3.30 - £10.85

4) Legal Charges fee - £488.00

5) Repossession fee - £330.00 (will explain this later on)

6) Judgment for Delivery of Goods order (suspended)  - £583.00

1,2,3,5

are unlawful.

esp the repo fee … As there has been a court order, it would be the job of a court bailiff to collect the vehicle - and that would only happen if he didn't pay the instalments ordered by the court.

 

pretty cheeky to charge 6+4 imho if the judge did not agree them in the ROG suspension outcome?

imho this is not going to end well

 

 

I wonder if a time order might be the best route now.

 

dx

ps sorry I've been busy today...

 

[Shelley181146]

Appreciate your time dx, I know your high in demand 

 

Chris says that

(6) was stated in the ROG order which is only payable after the full finance figure has been repaid.

(4) he's not sure about will have to look at the agreement and the other charges he will fight for in due course.

 

Something which has come to mind today is that the new arrangement of £500 per month for 12 months, then £450 per month thereafter will end the agreement much earlier than the original finance agreement terms.

If that's the case, surely Chris will be entitled to some sort of rebate because he won't have taken the full term to repay?

 

Looking at a Time Order, this will cost £255 as apposed to the N245 costs of £50.

As the courts are setting dates for Novemebr time, Chris wont be in a financial position to pay £255 and maintain the £500 this month for the arrangement, so then they'll come and try to collect the vehicle again

 

- I know what you mean about not ending well, but as they haven't sent a court appointed bailiff round with a warrant they cannot take the vehicle.

 

The form N245 allows Chris to apply for a variation order and/or suspension of any warrant.

 

dx I'm following this thread 

 and see that they have sent cowboys out to repossess his vehicle. Can you have a look at Anglia Uk please? These are the boys sent out to repossess Chris's vehicle and if they come back I can be ahead of the game, if you don't mind?

[dx100uk]

Anglia have never been bailiffs...

cant repo from (parked securely on driveway)

[Shelley181146]

2 hours ago, Shelley181146 said:

Something which has come to mind today is that the new arrangement of £500 per month for 12 months, then £450 per month thereafter will end the agreement much earlier than the original finance agreement terms.

If that's the case, surely Chris will be entitled to some sort of rebate because he won't have taken the full term to repay?

 

[dx100uk]

no ..total cost etc is already outlined on the agreement

int is front loaded 

not monthly calc'd

 

[Shelley181146]

But the agreement states that if its paid off early there will be a reduction?

[dx100uk]

well that's nice of them , I suppose it could be because they haven't loaned the money from the full term so cant charge the full terms interest.

but it wont be a lot I bet..!

[Shelley181146]

Every little bit helps, and better in Chris's pocket than the finance company.