What is the law on a car loan?

Does anyone know the exact answer for this one please. I bought a car on high finance with Welcome Finance, the loan has been paid for nearly 4 years, but there is still 2 years left? No it wasnt a Porche lol just an astra now worth about 拢2,500. I am now struggleing to pay the loan. There is a law somewhere that states if so much of the car has been paid off or you have paid more than what it is worth, they will write the debt off. Does anyone know the exact amounts or times please. Thankyou

i havent heard of the ;aw where it states that, but i do know when you have paid a third off the amount of the car they can not take it from you for lack of payment
my mate had credit with carcraft and even after a month fell into debt as things went upside down for her, the credit in the end was 18k, the whole debt was wiped as there was no way possible of her paying it and she got to keep the car, thats a lucky example. you should have had a contract with all the set out terms and conditions explaining all this. or go and speak to someone form the citizens advice they should be able to help.

Sorry, but you signed a contract. If you don't want to pay it, give the car back and maybe they'll cancel it.

Otherwise, keep paying. They have no incentive to do you a favor.

You have a HP agreement, so its about 1/3 they need a court order, but the car is not yours until its 100% paid. though the company may make a volunterry agreement with you, knowing they wont get much more money by reposessing the car.

No such law exists I am afraid - why would it (to be fair).

Finance for purchasing cars is actually arranged entirely separate from the people who sell you the car - its done by a lending company. As far as they are concerned they have lent you X to buy a car, and you have agreed to pay it back over a set period. Its not really any of their concern that your asset is now worth less than when you purchased it with their money.

Sorry, but this is just one of those annoying things about buying a car. They never appreciate in value. If you buy off credit, you end up paying more in the long run.

I used to work for Welcome Finance. They cannot take the car back once you've paid off the 1/3 - however they can still take you to court and ask for a CCJ to be issued.

In reality what happens with Welcome is that when you miss a payment, they'll ring and ring usually on a daily basis and if you don't answer they'll visit your house. They don't have any of the power of bailiffs (bailiffs can ONLY take your property if they have a CCJ) but they will probably be quite rude. They don't have any rights to enter your property, but can be very intimidating and embarrassing anyway.

If you then miss 2-3 payments (basically when you are 2 months behind on payments) they will pass it to the 'LMB' - local management branch - and they will try and arrange a lower payment, for eg 75% of your old payment, and do a "rewritten" agreement. It will show up on your credit file as such, but at least it stops the hassle.

If you still don't pay, then constant phone calls/visits until you are 6 months behind, then it goes to the LCU - local collections unit. They can accept a much lower payment (eg 1/3 of the original contracted payment).

Basically if you are stuck just for a month or two, your local branch should be able to help, especially if you've previously been a good payer. They should come to a catch up arrangment, whereby you miss/underpay a month or two and pay more to catch up the arrears. If you really are 'down the swanney' then the only thing you can do is endure the constant calls and visits till it passes to the LMB. You can go to the citizen's advice or debt management (Paypal/CCCS), and whilst it will still go to the LMB, the calls MAY stop - depending upon the branch. However the CAB etc can take their time in contacting Welcome, and thus you'll receive calls in the meantime. Basically the local branch can't do anything unless it's a short term issue, so hang in there if you're in serious trouble and the LMB have more powers with regards your payments.

You could try to google it ,here is some direct resource might be helpful.http://carloan.featured-resources.info/i...

Hi, I work for Welcome Finance based in Basingstoke. I'm sorry to hear about this. Feel free to ring me on Mon, Tues or Thurs 9-5 (I work part time) and I can look into the specifics of your account for you and tell you exactly why you owe as much as you do. The office number is 01256 357719. Heidi.

Your contract states that after you have paid 1/2 of the financial agreement (and it gives you that exact amount) you can hand the car back and owe nothing. This is called voluntary termination. However, if Welcome Finance have issued you with a Notice of Default at any point, and the full arrears requested on the default were not repaid within 10 days, you will have lost this right. Ring me and I can look at your account and give you specific details.