Close Motor Finance just raped me.

[carlnicholson...]

I bought my KLE ages back with Close, but ended up handing it back when I lost my job and couldn't keep the repayments. They agreed I would still have to pay £1700 after they had the bike and I had little choice but to agree, I knew a new job was on the horizon. They assurred me the payments would be manageable and would be confirmed once the bike was sold.

Like a gimp, I didn't ask for this in writing. Que a phone call demanding £3500!!

I have now got myself into a HUGE fecking problem. I own my house, but it has only one bedroom. My second child is to be born in April but this wasn't a problem because my neighbour has a three bedroom house and we have just agreed a house swap.

Now I have no chance of raising the funds for the huge deposit I need for the mortgage, and even if I make small payments to Close and save for the mortgage deposit, I doubt the mortgage would be accepted because the payments would be with a debt collection agency.

£1700 I could afford over a bit of time, but £3500? That's more than I owed BEFORE handing the bike back, and they have £900 from selling it! That's going to take over a year to save up. I'm stuffed, and all thanks to Close making up porkies!

If anyone here works for Close then I wish you a bloody miserable Christmas!!!
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"THOSE WHO RISK NOTHING, DO NOTHING, ACHIEVE NOTHING, BECOME NOTHING."

[kawakid]

That's a bitxh.

I suppose that is the problem with having a bike on finance. If you had a loan for the amount for example you could have sold the bike (as there's no finance on it) and that might have been a better route.

Perhaps income protection on a loan. I've had that in the past. Never needed to claim on it though.
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I've a twin and a 4.

[Flip]

You should always take out extra cover to protect yourself from job loss etc.

[carlnicholson...]

The problem with protection is you need to be out of work for three months before you can apply, by which point, the vehicle has already been repossessed for non payment!!

It's entirely my fault for being in the position to not be able to afford the repayments, I'm not trying to pass the buck. But it can't be denied, they have done a good number on me afterwards.

I now need to sell the house and rent somewhere. The house next door was my dream home and now won't be mine. Lets this be a lesson to all those young 'uns taking out finance, don't fuck it up!
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"THOSE WHO RISK NOTHING, DO NOTHING, ACHIEVE NOTHING, BECOME NOTHING."

[Villers]

[Paivi]

Why give up? Send a letter, registered post, to Close asking for a clarification as to why the previously agreed £1,700 (less, presumably, sale proceeds) has now been increased to £3,500, with a copy of the last outstanding balance. Could be that it's just an honest mistake.

In the current climate, you'll be struggling to sell your house, as people cannot get mortgages. It might be difficult for you to get one to buy the next door house, anyway, so you might be stuck where you are.
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My other bike's a Monster...

[Ariel Badger]

Try the Citizens Advice (CAB).
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Bikers make great organ donors, get 115 on your licence today.

[Flip]

[s44678]

This Close company are likely shitting it themselves. Probably haven't been able to re-service their own debts what with the the good ol' credit crunch, so they're calling all theirs in to the maximum amount they think they can get away with.

Challenge it though. Registered Post, all that shit.
And +1 for the Citizens Advice Bureau

[Advisor]

Hi,

Ok so I know this topic is relatively old, but I couldn't help but post a reply. There are so many messages like this through out the internet, however, having worked in finance for many years, and despite intense knowledge of the industry,I have at times found myself in a situation quite like this, so I'm able to see it from both perspectives.

I understand completely that the situation with your account is somewhat distressing for you, and that you have a lot too loose, however, I really do admire the fact your one of the few who admit that the problem is down to yourself and not a 'Banking Error' as heard so many times in the past.

Now if I'm being completely honest, then the agreement that you had with the finance company was son Hire Purchase or Conditional Sale (usually Conditional Sale), meaning that the debt is secured on the vehicle, you didn't actually have the right to the vehicle, but on Conditional Sale, you usually have an option to purchase fee at the end of the term (Usually just a few pound, something petty along the lines of £50) and until that is paid then you don't legally own the vehicle.

Anyway, It's to my understanding that the only way to 'escape' Hire Purchase/Conditional Sale agreements is 1)Voluntary termination <<< Usually when you have paid half of the total amount payable, in which case you are legally entitled to hand the vehicle back, however, any scuffs, dents, or damage what so ever that has been done to the vehicle to stop it selling at the average market value you will be held liable for 2)Voluntary Surrender <<< This can be carried out at anytime during the term of your agreement, this just means that you can hand the vehicle back to the company, they sell the vehicle on at auction and then you are liable for the full outstanding balance which has to be paid with immediate effect.

It's also to my understanding that as the Agreement that you entered in was purely secured on a vehicle, then when the security is gone so is the companies interest and unfortunately the balance needs to be paid in full, as the debt then becomes unsecured, you entered into the agreement for the bike, with the bike gone then so is the companies asset. So they are fully within their rights to request the full amount outstanding.

I can't understand why the amount went up so highly in your case, unless there were fees added onto the agreement, for example did you actually hand the vehicle back or did agents come out to reposess it? This can usually add about £500 to the fees of an agreement, then you also have auction fees on top which again can be quite high, and when the vehicle was taken did you give them the spare set of keys that came with the vehicle? Service History? MOT Certificate and V5? As these fees can usually make the amount outstanding soar quite highly and can legally be placed on your agreement.

From a clients perspective I completely understand the situation (Been there myself!) however, I also see it from a companies perspective too having been in the industry for quite a while, and although it seems harsh, unfortunately there's no way out and the company always win, I can tell you though that the people you usually speak to on the phone occasionally have a heart, It's just a case of getting through to somebody who genuinely wants to help you ...

[carlnicholson...]

Nail on the head. There wasa bit of poor communitation between the finance company and I at the time, I intended to hand it back but wasn't proactive enough to get it sorted and within a couple of weeks of me asking them to take it, they rang me to arrange collection. I didn't interpret a difference between the two at the time.

Suppose I have little choice other than to just pay up. I have made ab agreement to pay £15 a month, probably be paying that for the rest of my life! I just won't realistically get a mortgage while it's going on, looks like I will just have to rent. Not an ideal situation.
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"THOSE WHO RISK NOTHING, DO NOTHING, ACHIEVE NOTHING, BECOME NOTHING."

[Newbiker0507]

Go to www.moneysavingexpert.com and post in their forums. They *should* be of much more help than here. They are experts on financial issues.

[kitty kat]

[carlnicholson...]

Either way, I wasn't off sick, I was simply earning less than my outgoings. The above was my reasoning for not taking protection when I took out the finance.
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"THOSE WHO RISK NOTHING, DO NOTHING, ACHIEVE NOTHING, BECOME NOTHING."

[G]

[carlnicholson...]

Got a call this morning £3500 today or they'll take me to court to apply for bankruptcy. Bunged them a few quid to leave me alone for the weekend to craft up a masterplan.

Looks like I've buggered it. They've reccommended I get legal advice but I don't know many solicitors who work for free!
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"THOSE WHO RISK NOTHING, DO NOTHING, ACHIEVE NOTHING, BECOME NOTHING."

[Tricolor Fan]

Take a look at https://www.consumeractiongroup.co.uk/forum/ It has a large section on debt that's full of useful advice.
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Give me ambiguity or give me something else.

[Charlie]

I always thought this must happen to people but I have never seen or spoke to someone (knowingly) that it has happened to or read a situation the forum where it has happened. It is like a whole different world away compared to me. I have alway assumed that if I ever got into a problem like this my parent/grandparents would help out, feck I'd have thought I'd get the money from a bank for some reason. Just shows how naive I am to this sort of stuff, and it makes me feel very middle class.

I can't begin to imagine how dreadful the thought of losing a house and all the stuff I hold dear (my motorbike, laptop etc) must be. Have some Karma
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Past: Honda x8rs, Honda City fly, Honda Hornet 250, Honda VFR750, Yamaha xt600e.
Current: Honda CBR929RR & Yamaha XT660Z Tenere

[Advisor]

[iooi]

Give these
https://www.cccs.co.uk --- 0800 138 1111 ----
Guys a call they are a charity and won't rip you off, they will give you sound advise on what you and the company can and can't do.
This group are recomended to people by the banks, and will help you to sort your problems out.
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Just because my bike was A DIVVY, does not mean i am......

[Kickstart]

Hi

Think you really need to have a word with one of the debt organisations mentioned above. They should be able to sort something out, and quite possibly show a way that the charges the company are making are unreasonable.

I do not think that they could make you bankrupt on this. At worst I suspect they could try for a CCJ, but that will cost them money and quite possibly result in you being ordered to pay a nominal amount per month.

All the best

Keith
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Traxpics, track day and racing photographs - Bimota Forum - Bike performance / thrust graphs for choosing gearing

[trevoriv]

Close Finance are absolute fuckers, we have to deal with them at work, complete bastards they are.

I know that's of no help at all but i thought i'd share that. Advice as above sounds pretty sound, dont just give up
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Past: '96 Thundercat, '02 ZX636R (A1P), '58 KTM 690 SM LC4 Current: '06 ZX636R (C6F)
Mudskipper wrote: Someone just has to sig that...

[Cigaro]

If they've already taken the bike back, there's nothing to lose - keep offering them what you can afford (and no more) until they accept.

[carlnicholson...]

The debt has now been sold to a private company (don't recall the name) and it's them that are getting a bit shirty, understandably tbh.

I spoke to a manager earlier who seemed to take a bit more of an interest and it seems he'll be a bit more undrestanding than the girl who phoned earlier. I got the impression she was just going through a script, 'Payment now or court'. Probably the same wording for every 'customer' she speaks to.

I'll make a call to the CCCS or CBS on monday morning, when I drag my backside out of bed, (still on the sick after falling off the DR! Woop!) then ring him back with a bit of a clearer view and firmer stand than previously I hope.

I'm not arsed about owing the money, it's not a huge amount, and I can eventually pay it off in a reasonable amount of time, it's the fact that it leaves me and three others stuck in a one bedroomed house! I had planned to have bought the house next door by now, as it has three bedrooms, but this has put paid to a lot of my plans and hopes.

So the lesson is pay your finance come what may, don't EVER consider handing your bike back to the finance company unless you absolutely have to, and don't believe the facts and figures quoted by individuals from the company over the phone, insist on everything in writing before making a commitment to a decision. Might seem obvious but I made these simple mistakes and now I'm well and truly in the shit. don't follow my lead!
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"THOSE WHO RISK NOTHING, DO NOTHING, ACHIEVE NOTHING, BECOME NOTHING."

[Cigaro]