Help with Return of Goods Hearing (Logbook Loan Company)

[j1604]

Wonder if anyone can help with my situation please I am a bit unsure what to do.

 

Just over a year ago I (stupidly) took out a logbook loan on my vehicle for £1360. The repayment agreement was £40.11 per week for 156 weeks. The idea was to use it as a short term loan and settle the balance off a couple of months later avoiding the ridiculous interest rate for keeping the loan for the full term. (£6257.16 repayable).

 

Unfortunately circumstances changed I lost my job and was unable to do so. I kept up the payments for 11 months until July 2014 and have repaid in total £1407.69 to date.

 

The payment arrangement on the contract states weekly however I was told I could also pay monthly- which I had been doing since the start of the agreement. Due to loss of employment in November 2013 and again in July 2014- I fell slightly behind on payments. 6 weeks behind- which is not even 2 late payments when paying monthly. The logbook loan company at both these times instructed high court enforcement officers to attend my address to recover the vehicle.

 

I explained to them on both occasions that I was not even 2 payments late and only £240.66 in arrears and they left after 30 seconds with no further action. After the first time I gained employment again quite quickly so was able to bring the arrears up to date. In July- I contacted the logbook loan company to try and set up a reduced payment plan that I could afford whilst unemployed. They were extremely unhelpful and refused point blank to accept anything less than £30 per week- which I started to pay weekly.

 

I requested a full statement of my account to see exactly how much I had left to pay and the settlement figure should I somehow be able to settle it off once I gained employment. Upon receiving this- I noticed that they had added on extortionate charges for instructing the high court enforcement officers on 2 occasions. All they did was knock on my door speak to me for 30 seconds and then leave. No recovery action or any other action was taken. Yet the logbook loan company added a total of £900 in "recovery charges" onto my account despite nothing being recovered.

 

Obviously I was unhappy about this and after much discussions getting me nowhere told them I would stop repayments until they removed the charges from my account. They refused- instructed a solicitor- and I now received from them a county court claim through the post with a "return of goods hearing" to take place in 4 weeks time. The claim details the full £6257.16 repayable for the full term of the agreement minus the £1407.69 I have paid plus additional costs and interest of £900 bringing the total to £5793.96.

 

I have no idea what a return of good hearing entails- or what my best course of action is. Can anyone help?

[AndyOrch]

Hi j1 and welcome to CAG

 

There will be a court form (N9C) with the claim that you should fill in and send back to the court within 14 days. You must fill this in if you want the court to suspend the return of goods order and allow you to keep the goods. You need to offer to pay the debt back in monthly instalments you can afford.

 

Where you need to keep the goods, it is important to treat this debt as a priority over ordinary credit debts and offer as much as you can afford.

 

Send the form back to the court, not the creditor. The court will send a copy of your form to the creditor.

 

Regards

 

Andy

[j1604]

Thanks for the reply.

 

There was no form sent with the claim. Just a date for a return of goods hearing. Meaning that a return of goods order has not been made yet.

 

Shall I print off the N9C form and send it in prior to the hearing? Or do I just have to attend? If so do you have any advice on attending the hearing?

[AndyOrch]

" I now received from them a county court claim through the post with a "return of goods hearing" "

 

I thought you had received a claim?

 

A creditor may try to get a 'Return Order' from the court, which forces you to return your goods. However, there must be a court hearing first (probably in your local County Court).

Before the hearing, the court sends you a 'Claim Form', which gives you the chance to return the goods yourself. They'll also send you an 'admission form', which lets you:

 

explain your financial situation

 

make a new offer of monthly payments to the creditor

 

You must send the admission form back to the court within 14 days. The court then talks to the creditor to see if they'll accept your terms. If they do, the hearing is cancelled; if not, or if you don't send back the form, the hearing goes ahead.

The court then decides whether or not to enforce the Return Order or 'suspend' it (meaning it will be enforced if you miss another payment later on). If you're allowed to keep your goods, the court will set your new monthly payments.

If you don't attend the hearing, the judge usually grants the Return Order.

[j1604]

I received a "notice of return of goods hearing" with hearing date

 

and a "claim form" from the county court with claimant, defendant, claim number etc on

 

Details of claim "return of goods secured by bill of sale and / or damages for breach of a fixed sum loan agreement"

[AndyOrch]

See my last post..updated.

[j1604]

Ahhh ok thanks. I have not received any forms to reply to or return with the claim form. Do I need to obtain these myself and send it in?

[AndyOrch]

Speak to the court that sent the hearing Notice and explain what you have and not received....they will advise.

 

Then come back for further guidance.