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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To expect more help than this?

244 replies

iwillnot · 29/03/2021 08:58

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.)

OP posts:
Dishwashersaurous · 29/03/2021 09:38

Yet again I am flabbergasted by post on mumsnet.

The advice to contact the company is sensible and is response to situations outside an individual control. The company are completely within their rights to say no.

However, in this situation you created planned and knew about the situation. So there is no extenuating circumstances. You knew exactly what bills you would have to pay. And you had nine months to save up to be able to pay those bills.

PatriachyChickenChampion2020 · 29/03/2021 09:39

Please feel to PM if you want @iwillnot

Racoonworld · 29/03/2021 09:40

Can you go back from mat leave earlier? Or get a temporary evening job?

You took on the car finance, you then chose to go on mat leave for 9 months, reducing your income. It's not their problem, you need to plan for mat leave and assume you need to pay all of your debts. If that means you only have 6 months off rather than 9 then that's what you have to do.

NoSquirrels · 29/03/2021 09:41

You haven’t given much information to go on.

How much can you propose to pay them?
What are your other outgoings and can you cut these?
Do you have other debts and have also asked to reduce payments?
Do you have a partner involved?

The car loan isn’t a “priority debt” legally, but they can repossess if you don’t make payments and screw up your credit file so it is probably best to see what else you can reduce first.

Obviously they’re going to play hard ball to begin with. That doesn’t mean they won’t accept reduced payments if you persist with them - but only if you have a full plan of income vs outgoings and all that looks ‘reasonable’ to them i.e. you’re not prioritising paying Sky or an enormous phone bill or paying off a different loan in full over your car loan etc

Original poster
iwillnot · 29/03/2021 09:41

dish it’s true it’s a situation I ‘created’ but just the same I didn’t expect everything about it. I won’t go into details but things like illness during pregnancy can affect maternity pay.

The company are within their rights to say no it just seems crazy to me for the sake of 3 months.

OP posts:
Ponoka7 · 29/03/2021 09:43

"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"

It's good business practice, falls into line with responsible lending and follows the good practice charter for lenders. All of the debt charities have campaigned for payment breaks and the more ethical lenders have taken that on board. People shouldn't still be getting taken to court and having fees added if it's a genuine case and a solution is in sight. When a case goes to court the judge looks at what can be afforded and often sets the repayments lower than the debtor was offering. People spiral quickly because of unfair collection agencies and it has wider repercussions for society. If Citizens advice was open they can often help, so even though this isn't Covid related, if Covid wasn't happening the OP could seek help. There is legalisation in place that the Citizens advice can suggest the company uses.

OP I'd get back in touch and explain to them what is priority debts. Look up a bit of legalisation around that and quote it.

BarbaraofSeville · 29/03/2021 09:44

They don't know it's only three months though. You say you're 'starting a new job in July' but that means that it could be nearly 5 months until you get paid if you actually start the new job at all - a lot could happen in that time.

Original poster
iwillnot · 29/03/2021 09:45

It sort of is covid related as I had to start maternity leave early because of it ... so that’s impacted pay. Tenuous link conceded!

OP posts:
Original poster
iwillnot · 29/03/2021 09:45

@BarbaraofSeville

They don't know it's only three months though. You say you're 'starting a new job in July' but that means that it could be nearly 5 months until you get paid if you actually start the new job at all - a lot could happen in that time.
Yes they do because I told them!
OP posts:
Dishwashersaurous · 29/03/2021 09:46

have you gone to the company with a detailed plan, eg a 20% reduction for three months and then 120% increase for three months. If you show them that you have a plan they might be more amicable.

However, remember that the longer you take to pay back a loan the more interest so greater cost overall. Therefore you should always prioritise paying off debt first before anything else

Kimye4eva · 29/03/2021 09:47

@PatriachyChickenChampion2020 I don’t think that says you have the right to pay reduced payments, just that in particular circumstances you can voluntarily terminate your agreement?

But you are right voluntary termination could be an option.

OP I don’t think you said whether you had actually missed a payment? Voluntary termination can be refused if you’ve missed a payment.

Original poster
iwillnot · 29/03/2021 09:47

That’s exactly what I proposed dishwasher

I do find it bewildering and I am a bit stressed as I couldn’t see why they wouldn’t agree to it but I suppose they have their reasons. I’ll try the links PPs pointed me to.

OP posts:
Original poster
iwillnot · 29/03/2021 09:48

I’ve never missed a payment.

OP posts:
canigooutyet · 29/03/2021 09:51

Had you posted going to be struggling for the next couple of months due to a temp loss of income, any tips on how to cope?

You would have been advised to contact all utility and credit companies to ask for a payment break.

It must be very nice for some people to go through live without having any hiccups. Wonder if they would be so tough shit if they found themselves in the same situation. Of course, some will come and say oh I'm too responsible blah blah blah. Yet they forget there is so much that we cannot control regardless of how much or little money we have.

NoSquirrels · 29/03/2021 09:51

Can you scrape together the full payments on the car from elsewhere- borrow from family, cut back anything else etc - have you asked for a mortgage payment holiday? If you are confident you can pay it back with interest once you start working then that might be better if you want to keep the car. Otherwise look into voluntary surrender. Life is expensive with children and doesn’t get much easier with childcare fees etc so it could be a good thing to reassess.

Original poster
iwillnot · 29/03/2021 09:54

I know cani Smile

sqirrels ive paid but I literally have NO money now. I have £10 PILS sent dd for Easter. I’ll put it back in her account when I’m working.

OP posts:
Dishwashersaurous · 29/03/2021 09:54

A mortgage holiday payment might be easier as they are being granted due to covid. Therefore that might be the easier bill to reduce

canigooutyet · 29/03/2021 09:55

If you google you should also find templates to help you communicate with them. Sometimes it's all in the wording

Original poster
iwillnot · 29/03/2021 09:55

I don’t have a mortgage

OP posts:
Dishwashersaurous · 29/03/2021 09:55

or you may have to simply give up the car

greenfrogs1 · 29/03/2021 09:55

I think you're getting a hard time in this thread OP.

I know with some bills, such as mortgages, they actively encourage you to be transparent about a change in circumstances. It's in their best interest to work with you (within a reasonable degree... don't get me wrong - I know they are not charities) so that they don't need to go through the processes associated with you just stopping payments all together, which probably comes at an expense to them.

I would have thought they may have been able to temporarily reduce payments for three months and add it onto the subsequent bills.

So I don't think you are being unreasonable

Original poster
iwillnot · 29/03/2021 09:56

This is what I don’t understand green

If I was saying I’d lost my job and didn’t know when things would change ... but as it is it’s temporary.

OP posts:
NoSquirrels · 29/03/2021 09:57

@iwillnot

I know cani Smile

sqirrels ive paid but I literally have NO money now. I have £10 PILS sent dd for Easter. I’ll put it back in her account when I’m working.

What’s the deal with your overall household income?

Is your DC’s father expecting you to cover all bills on maternity leave as usual? What’s your set-up?

Dishwashersaurous · 29/03/2021 09:57

have you stopped all discretionary bills? Netflix etc and are you on the cheapest mobile deal eg £7 per month etc.

Also can you borrow money from family. What about the father is he contributing, if its a family car then payments should come out of joint funds.

NoSquirrels · 29/03/2021 09:57

Can you get an overdraft? What is the total of your commitments between now and July when you get paid?