Car Finance Old Debt Please Help

A question about : Car Finance Old Debt Please Help

A few years ago a friend of mine had a car on finance and was making the payments. However the car was then stolen and the insurance paid out on the car to the finance company. There was an outstanding amount which my friend wrote to the company and suggested a payment plan 2 years ago. When she had no response from them she called them and was told that the debt had been settled. She then remembers receiving a letter confirming that the debt was settled. 2 years passed, she no longer has a copy of this letter. The Car Finance company have now wrote to her and said that she needs to pay the outstanding amount PLUS the interest for the last 2 years.

They haven't contacted her at all in the last 2 years as she thought it was all done and dusted. Can they now write to her and claim that there is in fact more to pay and get her to pay the interest ? She has a young family and like most really can't afford the extra interest, she was willing to pay the amount owing 2 years ago with a payment plan but they never got back to her?

Please help

Best answers:

• She would need to write back and ask for proof of the alleged debt. This prove it letter template may help - Letter when you know nothing about about the debt - AKA "Prove it" letter
  Does she still have copies of the letters saying that the debt was
  settled?
• Yes they can write to her and try and claim back the money if it is owed regardless of whether they've made contact in the interim. They can also have added charges and interest too which can massively inflate the amount owed. I understand its hard when you think something is cleared and it just appears from nowhere.
  Like Tixy said above send the letter off and take it from there. Even if it is proven the debt is still owed I'm sure there will be some room for negotiating settlement. After two years they'll be pleased to get anything back I would have thought!!