To expect more help than this?

[iwillnot]

Went on maternity leave in October, have a new job in starting in July.

I’m struggling with making payments on my car. Contacted the company to explain this and just got told it was a priority debt.

AIBU in that given how temporary this situation is they should have been a bit more helpful? (I’m not asking for advice as such just wondering if I’m being U.)

Well from their point of view, you've agreed to pay them £X pm and if you don't, they're entitled to implement their standard collection/bad debt procedures. Your reasons for not paying are not their concern.

It's not a priority debt in the true sense, because it's not council tax or mortgage debt. But if it's Hire Purchase or lease, at some point they will be entitled to take the car off you, and also chase you for any shortfall.

Assuming that you had the car when you became pregnant, what were your plans for meeting your financial commitments during your maternity leave? Has something changed that makes you unable to pay your bills? If your loss of income is COVID-19 related, have you got all the help you might be entitled to? If yes, look into this quickly, because I think there's a deadline for something to do with this of Wednesday, so you might have to move quickly.

I know you said you don't want advice, but surely you must know that you can't expect your creditors to agree a gap in payments of several months, without explanation and engagement from you?

They are running a business not a charity, yabu.

It's really not their problem that you chose to have a child and go on maternity leave is it though?

Sorry but you have signed a contract to pay them. They don’t owe you any special consideration. Check the Ts&Cs, there might be penalties if you don’t pay on time.

You signed a legal agreement. It's not their problem if you struggle to adhere to the terms because of personal choices you made. YABVU.

You may need to give the car back and you may still have to pay a charge. Check your contract.

Unfortunately, if every person who took out a loan started saying things like this, where would they draw the line?

'I've just lost my job'

'I have an unexpected big bill'

'My mum died and I had to pay for expenses'

All difficult personal circumstances, that's why financial companies have to be firm.

Is there any other debts or outgoings you can look at reducing or cancelling?

Yes but that’s the point - I’m not suggesting I default totally, just reduce payments for three months.

Are you joking? Surely you knew that you'd have to continue paying all of your bills?

They're not unreasonable for wanting their money but I think it might be worth another call with a v clear plan on what you need to do re payments and how you'll pay it back, what happens of you don't etc.

Is Dad in the picture, are you getting financial support from him? Would he be willing to help more financially whilst you're on mat leave?

@iwillnot

Yes but that’s the point - I’m not suggesting I default totally, just reduce payments for three months.

But you signed a contract then decided to have a baby and go on maternity leave, it was a choice you made.

all debts are priority,in the lenders eyes, the document signed by you is binding, ask them if they would consider lowering the payment for a while,& give them a reasonable term,this may tip in your favour,as you are committing to payments,so they are not losing out,just the time will be extended,but business is business,& you can only offer to renegotiate,the answer may be good

I thought this thread would be about a DH not ‘helping’ around the house or grandparents not ‘helping’ with childcare! Why would a car finance company want to help you? Sorry-but they are a money making business not a charity or support group.

Have you backed up your request with evidence that 1. you can't afford to pay the full amount, ie a list of income and expenditures and 2. that if you have other credit agreements, that you're treating them all equally, ie reducing all payments by the same percentage, not paying some in full and not others?

Because they'll want to see the above before even considering your request.

Sorry but another vote for YABU. They don't have any obligation to help you.

@iwillnot

Yes but that’s the point - I’m not suggesting I default totally, just reduce payments for three months.

Why should they agree to that? You signed an agreement to pay according to terms. How would you like it if they rang you up and told you that you'd need to pay £50 extra/month because they were experiencing financial difficulty?

They don't have an obligation to help, but surely agreeing to a reasonable adjustment over 6 months is less work and hassle and ultimately expense for them than legal action?

@movingadvice

Are you joking? Surely you knew that you'd have to continue paying all of your bills?

Er - yes, hence I went on maternity in October and it’s now nearly April. But just the same my income has dramatically reduced and I’m struggling.

diw it isn’t the same.

They aren’t a charity but if you’re struggling the advice is always to contact the company and discuss it. I did that and was surprised, especially as it wasn’t ‘I have lost my job and don’t know when I’ll have another’ - there’s a clear end to this.

@SleepingStandingUp

They don't have an obligation to help, but surely agreeing to a reasonable adjustment over 6 months is less work and hassle and ultimately expense for them than legal action?

That’s what I thought

@SleepingStandingUp

They don't have an obligation to help, but surely agreeing to a reasonable adjustment over 6 months is less work and hassle and ultimately expense for them than legal action?

Not really. Large financial institutions have people on contract because every other person tries it on with financial difficulties and I can't pay, they'll have a legal department to deal with people who do this.

Of course it's the same. You agreed to the terms and conditions and now want to change those due to personal choices. They don't have to honour that.

This from the CAB might be worth a read.

I don’t mind being told I am BU but comparing one person on a temporarily reduced income spreading payments over a slightly longer term is not the ‘same’ as a large financial institution showing no flexibility.

As I say if I’m U fair enough but it’s not the same situation at all.

Thanks cat that’s helpful

Why do people give incorrect advice (whilst they are judging people in financial difficulties - and god knows there are lots at the moment!)

@iwillnot you actually may have some rights here, depending on the length of your finance and amount you have paid off. You can look into voluntary surrender and also voluntary termination. This is a brief overview of termination but please look into both as they may be applicable.

www.moneyexpert.com/car-finance/voluntary-termination/

So people saying "you agreed to pay tough shit" could actually be providing incorrect "advice" as well as needless judging. I do wonder why people feel the need to be like this.

Thank you that’s also helpful!