jennyweaver Posted July 13, 2015 Share Posted July 13, 2015 hi folks I really need your clever heads to help me here please. We have been here less than a year and have to head back to UK. I am not going into the reasons on this forum post cos it's a done deal and I am not here to be negative. My plea for help is about getting rid of our car before we go. I spent most of today on the phone trying to get a buyer for it. I got the smallest car around when we bought it last November in the hopes of avoiding any issues like this but alas... I cannot sell it privately since it is still financed. The finance company won't allow me to arrange a deal with them to pay off the difference if I coud sell it privately (the car is used as collateral by them..makes sense, sadly) and I cannot sell it through a company buying used cars cos I won't get the car's value from them. I would need to take a personal loan from the bank to finance the difference. Any suggestions/opinions on voluntary repossession? I figure -with the finance company's advice- I give them the car back. they sell it and THEN they will allow me to work out finance with them for the difference. They said I will be issued a credit default. Will this affect me getting a car or house in UK? I will be paying them back, I just am apprehensive about being stung for doing the right thing. I have to leave Aus and at least I am not leaving the vehicle somewhere in a gutter causing them a legal headache.. any help appreciated. Anyone wants to take over the payments for a cute little runaround 4 year old car, all welcome too!! x Link to comment Share on other sites More sharing options...
duffer34 Posted July 13, 2015 Share Posted July 13, 2015 Hi there might not be massivley relevant but i walked away from a house in the UK (voluntary surrender) and have a 50,000 debt in the Uk that i haven't paid for at about 4 years. Its never been chased to me in Oz and i have a great credit rating here and have had cars on finance and never had an issues. They wont chase oz debt to uk. Unfortunately i lost my job in the UK and had tenants that ripped me off and never paid the rent and cost me a small fortune . Best of luck not an easy situ Link to comment Share on other sites More sharing options...
duffer34 Posted July 13, 2015 Share Posted July 13, 2015 hope that helps Link to comment Share on other sites More sharing options...
Marisawright Posted July 13, 2015 Share Posted July 13, 2015 Your good credit rating in Australia counts for nothing in the UK, as I know to my cost, so I can't see why a bad credit rating would even be looked at. Link to comment Share on other sites More sharing options...
Guest Guest109139 Posted July 13, 2015 Share Posted July 13, 2015 hi folksI really need your clever heads to help me here please. We have been here less than a year and have to head back to UK. I am not going into the reasons on this forum post cos it's a done deal and I am not here to be negative. My plea for help is about getting rid of our car before we go. I spent most of today on the phone trying to get a buyer for it. I got the smallest car around when we bought it last November in the hopes of avoiding any issues like this but alas... I cannot sell it privately since it is still financed. The finance company won't allow me to arrange a deal with them to pay off the difference if I coud sell it privately (the car is used as collateral by them..makes sense, sadly) and I cannot sell it through a company buying used cars cos I won't get the car's value from them. I would need to take a personal loan from the bank to finance the difference. Any suggestions/opinions on voluntary repossession? I figure -with the finance company's advice- I give them the car back. they sell it and THEN they will allow me to work out finance with them for the difference. They said I will be issued a credit default. Will this affect me getting a car or house in UK? I will be paying them back, I just am apprehensive about being stung for doing the right thing. I have to leave Aus and at least I am not leaving the vehicle somewhere in a gutter causing them a legal headache.. any help appreciated. Anyone wants to take over the payments for a cute little runaround 4 year old car, all welcome too!! x We were in the same situation when we left Australia. Still had finance on the car, therefore I couldn't sell it privately, but not because the finance company didn't agree, but because nobody wanted to buy a car with finance still left on it. We were upfront with the finance company from the very beginning and said we are selling because we have to return to the UK and when they started to become really difficult we basically said to them if we cannot come to an agreement, the car will be left somewhere where they can come and collect it at their own expense and there will be no arrangement on the outstanding amount. They then backed down and agreed that we can return the car and we also agreed on a final settlement figure to pay as well to finalise the loan. We don't have to pay anymore towards the loan (which would have lasted for another two years) and will not be chased for any outstanding monies nor will they issue a credit default, and we made sure that this was all put in writing. But even if they marked our credit records because of voluntary repossesion, I don't think I would have worried too much, it doesn't affect your credit rating in the UK, and if it's a small amount they wouldn't even chase as far as I know. My advice is to try and negotiate and don't let them intimidating you, there is not much they can do really (and they know it) Good luck! Link to comment Share on other sites More sharing options...
Perthbum Posted July 13, 2015 Share Posted July 13, 2015 Hi there might not be massivley relevant but i walked away from a house in the UK (voluntary surrender) and have a 50,000 debt in the Uk that i haven't paid for at about 4 years. Its never been chased to me in Oz and i have a great credit rating here and have had cars on finance and never had an issues. They wont chase oz debt to uk. Unfortunately i lost my job in the UK and had tenants that ripped me off and never paid the rent and cost me a small fortune . Best of luck not an easy situ Problem is they will chase you the minute you return to the UK. Link to comment Share on other sites More sharing options...
Guest Guest98974 Posted July 13, 2015 Share Posted July 13, 2015 Problem is they will chase you the minute you return to the UK. Its been 4 years for the OP, so in another 2 it will be gone forever, and they will have a clean credit file. Absolutely nothing on there, and free to get credit cards, houses etc. I know I have experience of the situation, and returned to the UK and was never chased, called or had any credit issues. Give the finance company the car back, just tell them you can't afford it, don't mention you are going to the UK and walk away from the debt forever (unless you plan to come back to Oz). You are defaulting anyhow so black mark on your credit file regardless of wether you pay the debt off or not. Link to comment Share on other sites More sharing options...
CaptainC Posted July 14, 2015 Share Posted July 14, 2015 hi folksI really need your clever heads to help me here please. We have been here less than a year and have to head back to UK. I am not going into the reasons on this forum post cos it's a done deal and I am not here to be negative. My plea for help is about getting rid of our car before we go. I spent most of today on the phone trying to get a buyer for it. I got the smallest car around when we bought it last November in the hopes of avoiding any issues like this but alas... I cannot sell it privately since it is still financed. The finance company won't allow me to arrange a deal with them to pay off the difference if I coud sell it privately (the car is used as collateral by them..makes sense, sadly) and I cannot sell it through a company buying used cars cos I won't get the car's value from them. I would need to take a personal loan from the bank to finance the difference. Any suggestions/opinions on voluntary repossession? I figure -with the finance company's advice- I give them the car back. they sell it and THEN they will allow me to work out finance with them for the difference. They said I will be issued a credit default. Will this affect me getting a car or house in UK? I will be paying them back, I just am apprehensive about being stung for doing the right thing. I have to leave Aus and at least I am not leaving the vehicle somewhere in a gutter causing them a legal headache.. any help appreciated. Anyone wants to take over the payments for a cute little runaround 4 year old car, all welcome too!! x Awkward situation and presumably not one that could have been reasonably foreseen. If they cannot come to a compromise with you and are being unreasonable in their business with you then you will have to take the best actions based on your personal circumstances that you can. Your credit history will not follow you, but be prepared that if you return to Australia within a certain period of time then you'll still be liable for the finance. You could request voluntary repossession, and by leaving the country then you wouldn't be liable to actually pay the difference, but you can make arrangements with them for repayment if you wish. Link to comment Share on other sites More sharing options...
Guest Posted July 14, 2015 Share Posted July 14, 2015 Problem is they will chase you the minute you return to the UK. This is highly unlikely, as at the moment a UK court cannot make a judgement on Australian debt - I did read though that this is about to change and an agreement is to be put in place to allow debts in Australia to be taken to court in the UK and vice versa. Whether this would apply to debts incurred before the agreement is anybody's guess. Link to comment Share on other sites More sharing options...
CaptainC Posted July 14, 2015 Share Posted July 14, 2015 Problem is they will chase you the minute you return to the UK. This is highly unlikely, as at the moment a UK court cannot make a judgement on Australian debt - I did read though that this is about to change and an agreement is to be put in place to allow debts in Australia to be taken to court in the UK and vice versa. Whether this would apply to debts incurred before the agreement is anybody's guess. I think PB was referring to another post about UK debt. Link to comment Share on other sites More sharing options...
Bronyaur Posted July 14, 2015 Share Posted July 14, 2015 This is highly unlikely, as at the moment a UK court cannot make a judgement on Australian debt - I did read though that this is about to change and an agreement is to be put in place to allow debts in Australia to be taken to court in the UK and vice versa. Whether this would apply to debts incurred before the agreement is anybody's guess. It will never happen. Statute states that to proceed with county court judgements in civil law you have to be resident in the country your debt is based. For example, if someone leaves the UK and later a creditor tries to gain a county court order it will not be reconized as the debtor is not resident. The costs for a one world court for personal international debt is not viable. Link to comment Share on other sites More sharing options...
newjez Posted July 15, 2015 Share Posted July 15, 2015 Its been 4 years for the OP, so in another 2 it will be gone forever, and they will have a clean credit file. Absolutely nothing on there, and free to get credit cards, houses etc. I know I have experience of the situation, and returned to the UK and was never chased, called or had any credit issues. Give the finance company the car back, just tell them you can't afford it, don't mention you are going to the UK and walk away from the debt forever (unless you plan to come back to Oz). You are defaulting anyhow so black mark on your credit file regardless of wether you pay the debt off or not. Might be a bit more complicated than that, http://moneyaware.co.uk/2012/02/can-you-run-away-from-your-debts/ Link to comment Share on other sites More sharing options...
Goochie Posted July 30, 2015 Share Posted July 30, 2015 Not really complicated at all. The debt becomes statute barred if you dont admit to it being yours, you dont make a payment and there is no CCJ against you. The first two are obviously easy to control yourself and the CCJ is not. However, if you can demonstrate that you were not a resident in the UK when the CCJ was filed, it becomes null and void thus ensuring all three criteria for being statute barred are satisfied. Remember the website you have linked to above has an interest in trying to tell you otherwise. Link to comment Share on other sites More sharing options...
Bronyaur Posted July 30, 2015 Share Posted July 30, 2015 Not really complicated at all. The debt becomes statute barred if you dont admit to it being yours, you dont make a payment and there is no CCJ against you. The first two are obviously easy to control yourself and the CCJ is not. However, if you can demonstrate that you were not a resident in the UK when the CCJ was filed, it becomes null and void thus ensuring all three criteria for being statute barred are satisfied. Remember the website you have linked to above has an interest in trying to tell you otherwise. Thats entirely correct, as i stated a few posts back. Link to comment Share on other sites More sharing options...
Time2Go Posted August 6, 2015 Share Posted August 6, 2015 Hi We are in the same situation, car on finance, can't sell, been trying for 3 months and reduced it a lot. I have scoured our agreement and it states we can hand back if we can no longer pay the loan. As has been stated the debt cannot be chased back to the UK. As our car is worth more than we owe I am sure that the dealer will make money on it when I hand it back. It is in better condition than when we bought it. I think the problem here is a general malaise in the economic conditions. We have sold a fair bit but not for what it is worth and will be giving stuff to charity as well. There really is not much money about for people to spend at the moment. It is what it is. As long as they agree to your proposal to hand back I wouldn't give it a second thought. And even if they don't what can they actually do? Link to comment Share on other sites More sharing options...
supercow Posted August 6, 2015 Share Posted August 6, 2015 I'm sorry to thread hijack - don't mean to be rude. I've been wanting to know, whether your UK credit scoring helps for when we move to Aus. I'm assuming I'll start with a blank slate, and will need to build one up there? Link to comment Share on other sites More sharing options...
Suzukiscottie Posted August 6, 2015 Share Posted August 6, 2015 I've been wanting to know, whether your UK credit scoring helps for when we move to Aus. I'm assuming I'll start with a blank slate, and will need to build one up there? Yes. Link to comment Share on other sites More sharing options...
bristolman Posted August 6, 2015 Share Posted August 6, 2015 I'm sorry to thread hijack - don't mean to be rude. I've been wanting to know, whether your UK credit scoring helps for when we move to Aus. I'm assuming I'll start with a blank slate, and will need to build one up there? No, your UK credit score is not recognised in Australia and as you say you must start from scratch. Link to comment Share on other sites More sharing options...
ruthwin Posted September 18, 2015 Share Posted September 18, 2015 Nothing is transferred from either country, good or bad credit rating. I had a great credit rating here, mortgage, credit cards etc but 10 years ago. Just ordered a phone connection with BT and because I gave no credit rating here anymore I had to leave a (refundable) deposit. Link to comment Share on other sites More sharing options...
ruthwin Posted September 18, 2015 Share Posted September 18, 2015 We also left a financed car in Oz, that we are trying to sell. So interested in this threAd. It's not financed by the car yard so can I not sell it? I don't understand , do long as it's paid out on sale what's the problem? Link to comment Share on other sites More sharing options...
Huggy75 Posted September 18, 2015 Share Posted September 18, 2015 Have you tried taking it to a dealer of the make of car? We had two Toyotas, took them to our local Toyota garage who bought them both on the spot, cash in our account the day after. They did ask if we had finance on them but we didn't. Link to comment Share on other sites More sharing options...
stevej Posted February 10, 2016 Share Posted February 10, 2016 It is a slightly misleading issue when it comes to chasing debt from another country. Yes it is true that an Australian company cannot chase a debt in the UK. But they can sell the debt to a uk debt collection company and they can then chase the debt. You would however be entitled to the full uk protection of debt management plans and insolvency regulations etc. The same process is legal and done the other way. Government debts are much easier to recover due to being able to locate your residence through government connections. Remember though debt is a civil offence so will not effect entry or exit from the country or result in arrest. Accept in countries like UAE where it's a criminal matter. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.