thanks Alan, it’s another interesting scenario. The Statute of Limitations may apply in a civil case such as this. No harm to consult with a lawyer, perhaps using some free legal service like the FLAC, to see if it might apply in your case. Sounds to us like there are other aspects which a lawyer would be interested to hear – the van was for company purposes and it was financed in your name. Presumably it was registered as a company vehicle. A lawyer on your behalf may be able to argue the van was, in fact, an asset of the company and as the company went into receivership then the debt outstanding should follow the company and not you personally. We can’t give legal advice, as you know, but perhaps no harm to have a chat with a legal professional.

Hi there Paul, thanks for the question. While we aren’t 100% certain we think you could hand the car back, under the half-rule, provided the arrears are cleared. Obviously you need to check this with the bank, and we’re not in a position to provide legal advice.

Hope this helps

good question stephen. it depends on the bank. your best bet is ask them. you are right to treat the re-sale value seriously because some institutions have been known to sell below market value to “close a quick sale”

hi regina, we couldn’t comment on the specifics, especially because you’ve mentioned the name of the bank! generally speaking it doesn’t appear as though the half rule would apply unless you had paid half the debt and then handed the vehicle back. what we can’t understand is how a vehicle you bought for 16,500 could be sold for 2,300 such a short time later. was the original market value of the vehicle inflated or did the bank not realise the market value when they sold it at 2,300? this is an important point. i am afraid it sounds to us like its a complicated situation. perhaps seek independent free legal aid advice. a lot of good lawyers do free legal aid work – this might give you an idea where you stand. as mentioned, we can’t deal with a specific matter like this. good luck

i am just looking for some advice please… i bought my car on HP through GE Money a good few years ago and after a year and a half i gave it back of my own free will as my husband lost his job…they sold the 05 car for 2,300 and i had paid 16.500 the year and half before for it so they tell me now i owe 13.300 and i offered to pay a 50 a month and they refused this and sold the debt to cabot financial… i cant even pay my mortgage never mind for a car i dont have….what can they do to me now ….. would i better off going to court as at least a judge will see i have no money….. and is it my fault that they sold my car for such a crazy amount at the start of the recession…..

thanks

hi liam, there’s probably nothing wrong (though you can’t be 100% sure) as we’re finding more and more issues with purchase of repo vehicles ranging from absence of official documentation to lack of service records. this is a reality in this particular sector of the market. resolving this issue will not be easy. we suggest getting (finding) a contact in ptsb to help you get in touch with the person/department in that bank that can assist. a simple communication between the bank and the department of transport might do wonders! good luck

hi eddie, we’re wondering whether the bank presumed you weren’t paying when you applied to reschedule the loan: we’re presuming you paid all your payments in 2011, even when you weren’t working? if it’s just the one payment you missed then that seems harsh. we suggest contacting the bank asap and sorting this out. to answer your question, yes, they can lift the car without your consent, and can do so anywhere

hi lorna. sounds to us like the statute of limitations MAY apply. you’d need some legal advice to know for sure though

Sinead, this is a complicated one. Presumably the van was repossessed with the tools in it, and now they’re not accounted for. We couldn’t really give advice on that one I’m afraid – it sounds like an administrative issue somewhere. However, if the finance agreement was on the van then the tools in the van would not fall within the terms of the agreement – that would be our broad understanding of the situation. I presume you’ve documented the tools, listed them, and have an exact value set out for them? It’s very unlikely the van was sold unknowingly with tools in the back. If the amount owed was greater than the market value of the van then perhaps the tools could be brought within the remit of the agreement, but this would be made clear to you by the bank – and that doesn’t appear to have happened here.

Hi Jen, strictly speaking the bank are right – they hold title in the car until the last payment is made. However, sounds to us like it’s a bit harsh to force you to sell when you’ve missed two payments because you were sick. I would approach someone else at the bank, have your doctors certs to hand, and ask to have the loan period extended by the extra two payments. good luck

I have approx 2000€ left to pay off a car loan but over last couple of months due to being
Sick I’ve missed two payments. The bank is now saying that my only option is to sell the car
Or hand it back to them. Is this right? It’s not a hire purchase but I’ve paid approx €6000 already
So it seems very unfair.

Banks do not want to reposess cars, however, if payment isnt forthcoming and you ignore the situation they can either write off the debt or reposess the vehicle. Its best if you engage with the lender and come to an arrangement that avoids tarnishing your credit rating.

Tanya we can’t give you legal advice. However, it seems to us, from what you say, that there may well be a case of fraud if someone has appropriated your assets without paying for them. While we know it’s costly a solicitor may be the only route for you if the Gardai don’t want to get involved. Our understanding of the half rule is that it applies to Hire Purchase agreements (car loans) and not to personal loans. The bank, unfortunately in your case, are within their rights to look for your assets in compensation for any loss they make if you decline to pay the full agreement amount.

Tom, the short answer is yes. The finance house have title in the van until all the repayments are made. As you’re in arrears your options are more limited although we’re not sure why the finance house seem unwilling to accommodate your proposed repayment schedule – especially since you appear to have paid quite a significant amount already. Thanks for your detailed comment on this and we hope you find a work-around with the bank.

Thanks Michael. As far as we know this car was sold onwards. Wasn’t it Seán Fitzpatrick’s car that was crushed though! – http://www.newstalk.ie/2011/news/5sean-fitzpatricks-car-crushed22/

Thanks for your comment Joe. We contacted Merlin Car Auctions and they tell us as many as 50% of the vehicles they auction are bank repossessions. Most of the banks send repossessed vehicles for auction by default but a minority choose to sell them elsewhere. At the moment, just to give you an idea, Merlin have as many as 100 cars for auction which are repossessed bank vehicles.