Finance Company Dispute

A question about : Finance Company Dispute

Hi

My inlaws have a problem, 4 years ago they had a car on finance, they returned the car when it was due and got another car with a subsidary of the finance company. There was a lot of issues, which involved a forged signature of my father inlaws from the finance company. It almost went to court but the finance company decided to stop proceedings and stop trying to claim.

Nothing was heard of since, the inlaws ended up moving in with us for financial reasons and then last month they got a final demand to our address from a debt collector on behalf of the finance company (the finance company had sold the debt to the debt collector) telling them they had 10 days to pay the Ј8500 or the baliffs would be coming.

They sent off the letter they had from the court which stated that the finance company had decided not to proceed to claim the money disputed but the finance company said that was not good enough evidence.

My father in law phoned the finance company and they told him literally that they can continue to chase him for as long as it takes to obtain the money.

Can someone please tell me where they stand and where I stand as this is my house (my name on the mortgage not theirs etc should the baliffs come calling).

Many thanks

Best answers:

• Hi LauraB, thank you for your query regarding finance company dispute
  I would suggest your parents write a complaint letter to the debt collectors stating the debt is disputed and ask them to investigate the dispute and not to contact them in the meantime. The letter should be sent recorded delviery and a copy kept. If they do not respond or you are not happy with the response you parents can complaint to the Financial Ombudsman Service. You can find more information about disputing debts and the Financial Ombudsman Service at www.adviceguide.org.uk
  Hope this is of assistance.
• thank you for getting back to me, they have already tried explaining that the debt is disputed evening sending the court documents to show that the finance company withdrew proceedings 3 years ago but the debt company are saying thats not good enough evidence and the finance company themselves are saying that even though they withdrew from court proceedings to obtain the money 3 years ago, they can still chase for the money for as long as it takes to get it?
• Hi Laurab,
  If your parents have already received a final response to their complaint then they should put the complaint in with the Financial Ombudsman now as there are time limits to take action.