LawAnswers.com.au - Australia's #1 Legal Community

LawAnswers.com.au is a community of 10,000+ Australians, just like you, helping each other.
Ask a question, respond to a question and better understand the law today!
Join us, it only takes a minute:

QLD Is Car Loan Considered as Secure Loan?

Discussion in 'Debt and Bankruptcy Law Forum' started by Timothy Wagg, 20 June 2016.

  1. Timothy Wagg

    Timothy Wagg Active Member

    Joined:
    1 February 2015
    Messages:
    9
    Likes Received:
    0
    Hi Forum.

    I have a car loan that I am default on. I received a letter from the Finance company dated 5/4/16 Default Notice. I immediately rang them explaining I have a block of land for sale and will finalise the amount owing immediately.

    Theale fell through and I rang the finance company again explaining this. I also advised them that I have another signed offer, which should be finalized eary July.

    I received a letter of demand dated 7/6/16. This letter also states that interest will be charged daily. Also, after constant demands of Repossesion, I sold the car at a considerable under valuation and informed them. The finance company, although very good about my predicament, were not concerned with the sale.

    I am on an age pension. They know this. Is this loan still considered as a Secure Loan? Where can I go from here?

    Thank you.
     
  2. Rod

    Rod Well-Known Member

    Joined:
    27 May 2014
    Messages:
    2,174
    Likes Received:
    258
    Enter into a repayment plan with them that you can afford. Use proceeds from the land sale to pay the balance owing.
     
  3. Timothy Wagg

    Timothy Wagg Active Member

    Joined:
    1 February 2015
    Messages:
    9
    Likes Received:
    0
    Thanks for the reply Rod.
     
  4. Victoria S

    Victoria S Well-Known Member

    Joined:
    9 April 2014
    Messages:
    446
    Likes Received:
    44
    Hi Timothy,

    Read the car loan documentation - it will state whether or not the vehicle was a security on the loan. If the vehicle is security for the loan and you have sold the vehicle I believe it can still be repossessed by the loan company because you didn't have effective title to the vehicle to sell it. The purchaser may then come after you for the value they paid for the car.
     
  5. Timothy Wagg

    Timothy Wagg Active Member

    Joined:
    1 February 2015
    Messages:
    9
    Likes Received:
    0
    Hi Victoria S.

    The Finance Company hassled me into selling the car with their signed approval. The trouble was that I had to sell the car at reduced value which the finance company was aware off the reduced price.

    I will again contact them. I have offered to enter an payment agreement but being on a pension I cannot pay a lot. Which they are not happy about. This is what I am asking that can they hold off without Daily Interest until Block off Land is sold.

    Thank you for your reply Victoria S.
     

Share This Page

Loading...