Vehicle arrears as consumers struggle to service debt
South Africans are faced with financial difficulty mainly caused by the onset of the lockdown levels due to the pandemic to curb the spread of the Coronavirus. Many families have lost loved ones due to the COVID-19 SARS virus. Others have lost their jobs, while other groups are working from home and companies had to look at numeration packages affordable to the business in ensuring sustainability during the unforeseen duration of the lockdown that is now currently on level 3.
It became evident how many consumers are finding their immediate financial situation strenuous and unable to keep their contractual credit agreements up to date.
Making payment arrangements with vehicle finance companies to settle the arrears on missed payments due to layoffs at work, short time, or retrenchment affecting a wider spectrum of consumers.
Payment arrangement on vehicle arrears is difficult to pay.
When payment arrangements are not met as per the agreements with the vehicle finance company, it places further strain on the individual trying to make ends meet.
Contact our offices for advice and assistance in how to manage the problem as the bank’s key persons dealing with the arrears account no longer are willing to make further payment arrangements with you.
Ignoring the calls from the bank.
The collections department agents will contact the consumer to discuss the arrears on the vehicle account. I often hear of struggling consumers who just ignore the bank’s calls. No arrangement can be reached, the account is then transferred to the collections department.
The collections department will forward the matter to an agent that is contracted by the bank to go out to clients in default, take action and then enforce a Voluntary Surrender. The bank gives the consumer the option to surrender the vehicle.
Applying for debt review.
Not knowing where to next it would be a good idea to connect with us. For every financial problem, there is a solution. One of our experienced debt management practitioners will know what would be the best way to go.
What is a Voluntary Surrender?
When the bank no longer can reach an agreement for the account holder to bring the arrears of the vehicle up to date. Then the bank’s collections agent is called on to do a house call. The agent usually gives the consumer 10 days to raise the money and bring the arrears up to date, or at least half of the balance, and the following month the other balance. Depending on how the bank is willing to settle an arrangement on the arrears that is reached.
When this agreement remains in default, the agent will return and the consumer will be asked to hand over the vehicle keys and sign a Voluntary Surrender. The agent will take the vehicle to a compound of the banks. The bank will list the vehicle on its auction database for the next auction.
Refusal to hand over the keys.
As consumers, we do have rights. One of them is not to hand over the keys to the vehicle. A good reason for this refusal can be the personal finance of the consumer being assessed by one of our registered debt counselors.
If this article is reflecting on you, please do not hesitate to make contact with us for more advice, and whether we can help you?
Visit our website and leave us your details for a call back from one of our consultants: https://www.debtcenter.co.za/
Negotiating a payment break on the vehicle with the bank.
We know from experience the banks are not willing to assist consumers with a payment break on the vehicle account when the account is already in arrears.
What happens when the bank is no longer willing to extend the payment break? Talk to me directly, to discuss your personal financial difficulty. Here is my business card https://www.debtcenter.co.za/annienne-nel/
Consumer Debt Support has had many successes, where the bank accepts our supporting and motivation documents to assist the client. A debt review application has more benefits to the applicant when the vehicle is a necessity to get to work and ways to protect the asset take priority.
For us to assist you effectively please complete the calculation application. This information is well compiled and supports a good assessment outcome.
Being in arrears of your vehicle finance or TAXI used for personal or business can’t be ignored. The vehicle is the surety of the credit agreement. When the account remains in default the bank will proceed to the High Court on the grounds of the default, once a default judgment and attachment order, for the bank to take possession of the vehicle is granted, the credit agreement between the bank and client is canceled. The Sheriff will then serve the WRITT of EXECUTION and take possession of the bank’s assets as per the court order.
Contact Annienne Nel – NCRDC2452 for a more information https://www.debtcenter.co.za/annienne-nel/