Thanks for sharing this update David, even if it isn't going to be good news for the future.

For the reassurance of some people reading this, presumably this applies only to people who enter trust deeds or become bankrupt in the future?

What do you think the logic of the changed position is? Is the finance provider at risk of losing out if the car is damaged before being returned for example?

Hi David

Any idea how they found out about the sequestration?

Mark

Do you know if they are making any distinction between Trust Deeds and Sequestrations, David?

Hi,

Sorry for the delay, I've been doing a little further investigation into this.

I'm not sure on that TDA. It may be retrospective if the HP creditor finds out about the Sequestration or the Trust Deed.

I've also now spoken with Moto Novo finance and they have advised that in 99 out of 100 cases if they become aware of the Sequestration or Trust Deed they will look to recover the vehicle. They would only allow the client to keep the vehicle is it was approaching the end of the agreement.

I'm trying to get something confirmed in writing from the Hire Purchase creditors to verify what I'm being told over the phone.

Mark ÔÇô we list the secured creditors on our creditors list and they receive a copy of the paperwork.

We have asked a solicitor who regularly deals with hire purchase creditors and once I hear back from them I'll update further.

Hi,

Ok, a little bit of an update on this.

I've received confirmation in writing from Moto Novo that each case is treated on its own merits but they would take into consideration the following:

- Previous payment history
- Value of vehicle
- Number of payments/balance remaining ÔÇô high balance they would look to recover
- Age of vehicle ÔÇô newish vehicles they would look to recover

They advised that unless there is a small balance outstanding then they would more than likely look to recover the vehicle.

They also advised that they don't actively check to see if any of their clients have been Sequestrated/entered a Trust Deed unless they are making routine equities in an arrears situation.

I asked about a letter from the Trustee confirming that the we were prepared to allow the payment of the HP per month and they advised that it would act in the hirer's favour but again, any newish vehicles or ones with a high balance they would probably be recovered.

I'm still waiting on Toyota confirming something in writing but I suspect it may match what Moto Novo have said as verbally over the phone this is what Toyota told me.

So a further update regarding this.

I've managed to speak with the Customer Outcomes Manager from Toyota Financial Services/Lexus Financial Services. I had emailed them seeking clarification. He said he is the best person to speak with regarding this matter.

He has advised that under a Trust Deed or an IVA they wouldn't normally have a problem with someone retaining the vehicle as long as they maintained the payment. A letter from the Trustee confirming this will help.

He advised that in a Sequestration again if the client can maintain the agreed payment and the Trustee provides a letter confirming they are prepared to allow the payment of the HP or PCP then they will consider this and probably look to allow the client to retain the vehicle.

He said that with the FCA and TCF (Treating Customer Fairly) being a big focus for everyone it may not be fair to remove the customers vehicle and they had to be conscious of this in any decision.

He also said that in the past when a client has had a balloon payment to pay at the end they have refinanced the agreement to allow the client to retain the vehicle and continue with payments. As he put it, we have retained a client who has good payment history with us. He said this wouldn't happen in Sequestration, more a Trust Deed/IVA.

He did say that with everything it's looking at things on an individual basis but that he would be prepared to do that should any problems arise in the future.

I've got his contact details so if anyone does experience a problem in future we can contact him to try and resolve it.

Hi new to the form. I am very interested in reading this topic as at the moment considering entering sequestration and have a car on HP. Through reading the T/Cs there is a mention that the finance company (MotoNovo) have the right to terminate the agreement on the client becoming insolvent. I have recently changed car and very keen to hold onto it as in my line of work I need to travel to sites all over the country. My question with MotoNovo would they treat it on a personal level and if the administrator agrees to the car payment would they still look to uplift and terminate the agreement? or would they agree to continue the agreement? I know there was a mention of that they would uplift 99/100 times but would be keen to know if this is something they would budge on. Suppose my concern is if car is uplifted then how can I obtain a replacement?

Many thanks

Hello Borntoberee and welcome.

Reading David's last posts, it does seem as though they're looking at this very much on a case by case basis.

Have you considered contacting the finance provider directly to run some "what if" questions by them?

We have found a limited number of vehicle finance providers who will consider providing (quite expensive) finance during a trust deed. This might depend upon formal consent being provided by the trustee as well as all of the usual affordability and credit checks. I'm afraid I'm unsure whether this would extend to sequestration - though I'd guess that some lenders may well discriminate between the two.

Hi Trust Deed Assistant, thanks.

It does sound like that and hopefully that would be the case. I have been paying a dmp for a few years now with no real effect and now its coming the time to think about trying to put something in place that will allow me to have a future.

I would more likely go down the road of sequestration as I would more likely not meet the minimum amount you can pay to a trust deed.

I had changed car start of the year, and due to poor credit assumed I could only be accepted through one of these (quite expensive) lenders therefore ended up having car finance at 36% APR. Now looking at this I thought this was just what I had to deal with due to poor credit but just last week I took the chance to see if I could trade in a go for a larger car as I downsized at the start of the year (which was not the greatest idea due to having two kids and a lot of travel). I was successfully and even more surprising I more than halved the APR rate I was paying. For this reason I would be keen to hold on to the car as this car will go for a number of years and is exactly what we need as a family at the moment.

Apologies for this but changing the subject slightly, my wife and I both have our own debts and one joint. We have no assets and my wife doesn't work. As she does not have an income how would she go about applying for sequestration? and how are the joint debts dealt with?

Thanks

Hi Borntoberee.

There's no minimum amount you'd need to pay to qualify for a trust deed - how much is your current debt management payment?

Joint debts are dealt with as if each of you owes the full amount.

Hi,

I wanted to give an update on my experience with Moto Novo as they recently lifted and then returned a car to one of our cases.

We have a Sequestration case and as part of this we sent standard paperwork to Moto Novo as they are the hire purchase creditor for the clients car. They received paperwork on the Wednesday and at 6pm on the Friday night they had arranged for the clients car to be uplifted by a collection agent from the clients house.

I received a very irate call from the client telling me that a collection agent was in his street with a truck to pick his car up ÔÇô we advised the client at the initial stages that it's in the T&C of his finance agreement but in our experience it doesn't happen. It came as a surprise to me as we had no prior warning from Moto Novo that this would happen. In the past some HP creditors will send a letter advising they are looking to recover a vehicle and normally a phone call and letter from the Trustee will stop this.

The car was taken away on the Friday and on Monday we started speaking with Moto Novo. We were able to reach a suitable agreement with them to allow the client to retain use of the vehicle and they dropped the car back at the clients house on the Tuesday.

In this case Moto Novo wanted us to confirm that the client would continue with the payments per month and that if the client failed to maintain the payments we could co-operate and assist them with the recovery. They stood to make a loss in the region of £4,000.

I spoke with the collection agent and he advised that this was only the 4th or 5th time in a couple of years that he had been asked to uplift a car as a result of Sequestration. Normally it's as a result a failure to pay on the clients.

Thankfully a positive ending for the client with the return of the vehicle.