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NT Car Finance and Financial Hardship - What Can I Do?

Discussion in 'Debt and Bankruptcy Law Forum' started by Hedgehog69, 15 April 2016.

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  1. Hedgehog69

    Hedgehog69 Member

    15 April 2016
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    I am 4 months behind on my car finance due to financial struggles even after a 6-month financial hardship arrangement. As of 3 weeks ago, I am back in stable employment and can now afford to resume my monthly payments, and to make additional repayments to cover the arrears over a few months.

    The repo guy came and spoke to me 2 days ago and I put forward this payment arrangement to him so he could present it to 'the bank' (the finance company or the collections company, not sure which), but they rejected the offer due to the time it would take for me to repay the arrears. After some reading on Google, I found that the finance company must give a default notice 30 days before repossession.

    I haven't received any form of communication by the finance company, nor the collections company in around 6 months, and have not been given a default notice. I have had the same contact number, email, and residential/postal address since the finance contract began around 2 years ago (originally a 5-year loan term).

    I received a call today from the repo agent, saying the request was declined, and as it stands now, if I don't have the entire outstanding amount by Monday afternoon, he will have to take the car.

    What I would like is to try to get the finance company or collections company to accept an arrangement with a higher weekly amount than originally proposed via the repo agent; or I would like the finance company to give me a default notice with the details of arrears in writing, so that I can have 30 days to come up with all of the arrears or at least most of it, before the 30 days is up.

    The collections house office is currently open. I called and there was an answering machine that said leave a message and we'll get back to you within 2 hours. No call back after 2 hours so I left a second message. Tried to call the finance company directly, but their office is closed until Monday.

    Keeping this car is a high priority in my life, it's sentimental. If I let them repo it on Monday, I will only have 21 (or 28?) days to come up with the arrears in full or the car will be auctioned. What can I do?
  2. Victoria S

    Victoria S Well-Known Member

    9 April 2014
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    Unfortunately your options are limited, if you can't pay the arrears. You don't have the right to stipulate the terms of a repayment plan.

    It is true that the Credit Law requires your lender to give you a default notice (which tells you the payments you have failed to make) prior to repossessing your car. The notice must give you at least 30 days to remedy the default.

    If you have not received this then I would write to the lender urgently bringing this to their attention, and stating that they cannot lawfully reposses your vehicle until you have been accorded the 30 days. If they still take the car you can likely get court orders to have the car returned to you until such time as they are lawfully able to repossess your car and/or an injunction to stop them from selling the car. However there will be legal costs involved.

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