Could your car finance be written off?
It is the Car finance company’s responsibility to you, the consumer, to ensure that all aspects, all terms and each section of the agreement fulfilled the required terms and conditions of the 1974 Consumer Credit Act. If they failed in this duty to you then your car finance agreement may be unenforceable. When a motor finance claim is successful you will receive a cheque for the full amount of compensation awarded. Compensation is due to potential contract irregularities within any past or present motor finance agreements.
When you signed your car finance agreement it was the lender, not you, who produced the contract that was to be used. In most circumstances you would have had no choice over the terms within the agreement.
If you have a car with an outstanding finance agreement you may be able to claim to have the remaining balance written off. If a car finance agreement is unenforceable the lender may be forced to write off the debt with the possibility of you keeping the car. When you arrange car finance the agreement, contract and/or terms and conditions relating to the finance need to comply with all the relevant rules, laws and regulations. Even if you have ‘paid off’ your car finance in full, you may still be able to claim compensation.
You must be careful about checking with your claims manager about the likelyhood of your claim meaning you will need to hand over the car. Some claims have been succesful in claiming to write off the loan and allow the client to keep the car, whilst some have not. |
