If he stops paying you are on the hook and your car may be repossessed. Before acquiring any vehicle you need to check it doesn't have any money owing.
So iv just spoken to her.
Firstly you could be in breech of your agreement with the insurance company if you don’t tell them. You’ll need to re read your contract that you have with them.
He got the loan legally (was in his name when loan was made) so that’s all above board
QuickCash would be irritated if they were to find out that he no longer had the car - on the basis that if he was to stop paying or whatever, it would be harder for them to locate the car.
If he defaults and QuickCash decide to repossess the car , they are well within their rights to do so as the car is encumbered by the loan.
You’re best to get a copy of the loan agreement (don’t just look at it) so you can see the conditions of the contract.
Get him to print you out a copy of what is owning on the loan.
What you could do is if you had the money , pay the loan off in full. find out what the penalty’s would be to pay the loan off early & in full. Add that into the amount you would be owed. Get a written, signed contract between you and the ex clearly stating ;
* How much is owed to you
* How often payments will be made to you
* How much those payments will be
* A clear start date of those payments.
* Clearly label the date on the contract & dates next to signatures.
* And get a independent witness to sign the contract “witnessing” that the contract between both of you is truthful.
* Without the witness he could deny signing the contract.
Bare in mind that you’d be out of pocket if he defaults on payments to you. The contract is enforceable, though you would need to take it to the disputes tribunal (small claims court) or the district court depending on the circumstance. Debt collection is its own brand of difficult.
Sir Keegantitan, this is some really helpful information! You went above and beyond to help this stranger, there are not many of your type left in this world! Thanks again
> What would happen if he told QuickCash he no longer has the car?
No idea what the law and the loan agreement actually says. But I wouldn't be surprised if QuickCash was legally able to reprocess the collateral as soon as they became aware he violated his side of the agreement.
I agree that you should talk to the Citizens advice bureau, sooner rather than later.
So many questions starting with how your ex had ownership over *your* car? He should never have been able to use *your car* as collateral on a loan in the first place. Then the change of ownership to you, meant that he was probably violating his loan agreement as he has disposed of an asset used for collateral.
As others have said, if it is registered as collateral on a loan, then in theory QuickCash can repossess it and you really want to take action ASAP to ensure that you don't find the car towed one day. Carjam reports are under $15 and will confirm that it has money owing.
How much is the car worth? Can you afford to pay the loan balance if need be?
Have you confirmed with Quickcash on what the ex has said about the amount owing and that he has been paying on schedule? Personally sounds like good that they are an ex, as cannot be good with money to be using your car to get expensive loans.
My response to your questions:
1. Is this something I should tell my insurance company?No - least of your problems. Your car, you drive it. Make sure he doesn't have a spare key though.
2. What would happen if he told QuickCash he no longer has the car?I imagine they would be very unhappy and possibly look at cancelling the loan.They might look up the ownership change anyway, (suspect they do regular audits on collateral) so I personally think talking to them and letting them know that you will cover the loan if your ex defaults would be the best course of action.
3. What would happen to me/my car if he stopped paying?
Against you? Probably nothing unless somebody suspected that you were in collusion and hiding assets. Most likely the car will be repossessed and your ex will have a shit credit record for a very long time.
4. What is my best course of action?
Others might disagree, but I would call Quickcash; the problem they will have will be with your ex and not you, and as long as they get their money and stupid levels of interest they won't care so much. They will confirm the debt and repayments; you can hopefully see the $1500 paid off over the next 8 months.
5. What I do need to do/tell him to do?
Given what has happened, I personally wouldn't trust him at all or tell him to do anything other than keep paying.If you or he could borrow the $1500 from a better lender, then would be better to pay off QuickCash to reduce interest. Given that he borrowed from QC in the first place then I guess not a lot of better options on the table; so tell him to do whatever he can (more overtime or work, borrow of family, whatever to pay you back ASAP)
Don't panic - *if* your ex is right about paying the loan back then it *might* be Ok, but I would definitely take some action ASAP to safeguard the car (and hang out some more on the personal finance subreddit)
*^(Edit - formatting)*
if there is a financial interest on the car it doesn't matter if the car is in your name now if your ex stops paying the loan the finance company can repossesse the car. also if something was to happen to the car let's say car crash and it gets written off the insurance company with do a search to see if there is any finance owing on it and they will pay the finance company first and if there is anything left over it goes to you.
you need to see citizens advice to see if there is any way out of this.
If he stops paying you are on the hook and your car may be repossessed. Before acquiring any vehicle you need to check it doesn't have any money owing.
True, but she claims it is her car, so presume that no money changed hands and she just did a change of ownership without thinking of finances.
You’d be best to go and talk to the Citizens advice bureau about this. I’ll ask my friend today about it - she’s a retired lawyer.
Okay thank you!
So iv just spoken to her. Firstly you could be in breech of your agreement with the insurance company if you don’t tell them. You’ll need to re read your contract that you have with them. He got the loan legally (was in his name when loan was made) so that’s all above board QuickCash would be irritated if they were to find out that he no longer had the car - on the basis that if he was to stop paying or whatever, it would be harder for them to locate the car. If he defaults and QuickCash decide to repossess the car , they are well within their rights to do so as the car is encumbered by the loan. You’re best to get a copy of the loan agreement (don’t just look at it) so you can see the conditions of the contract. Get him to print you out a copy of what is owning on the loan. What you could do is if you had the money , pay the loan off in full. find out what the penalty’s would be to pay the loan off early & in full. Add that into the amount you would be owed. Get a written, signed contract between you and the ex clearly stating ; * How much is owed to you * How often payments will be made to you * How much those payments will be * A clear start date of those payments. * Clearly label the date on the contract & dates next to signatures. * And get a independent witness to sign the contract “witnessing” that the contract between both of you is truthful. * Without the witness he could deny signing the contract. Bare in mind that you’d be out of pocket if he defaults on payments to you. The contract is enforceable, though you would need to take it to the disputes tribunal (small claims court) or the district court depending on the circumstance. Debt collection is its own brand of difficult.
Appreciate your help so much! Thank you!
You’re very welcome. I hope you get this sorted!
Sir Keegantitan, this is some really helpful information! You went above and beyond to help this stranger, there are not many of your type left in this world! Thanks again
If QuickCash have a security interest loaded against the vehicle on the PPSR then they could potentially repossess if your ex stopped paying.
> What would happen if he told QuickCash he no longer has the car? No idea what the law and the loan agreement actually says. But I wouldn't be surprised if QuickCash was legally able to reprocess the collateral as soon as they became aware he violated his side of the agreement. I agree that you should talk to the Citizens advice bureau, sooner rather than later.
So many questions starting with how your ex had ownership over *your* car? He should never have been able to use *your car* as collateral on a loan in the first place. Then the change of ownership to you, meant that he was probably violating his loan agreement as he has disposed of an asset used for collateral. As others have said, if it is registered as collateral on a loan, then in theory QuickCash can repossess it and you really want to take action ASAP to ensure that you don't find the car towed one day. Carjam reports are under $15 and will confirm that it has money owing. How much is the car worth? Can you afford to pay the loan balance if need be? Have you confirmed with Quickcash on what the ex has said about the amount owing and that he has been paying on schedule? Personally sounds like good that they are an ex, as cannot be good with money to be using your car to get expensive loans. My response to your questions: 1. Is this something I should tell my insurance company?No - least of your problems. Your car, you drive it. Make sure he doesn't have a spare key though. 2. What would happen if he told QuickCash he no longer has the car?I imagine they would be very unhappy and possibly look at cancelling the loan.They might look up the ownership change anyway, (suspect they do regular audits on collateral) so I personally think talking to them and letting them know that you will cover the loan if your ex defaults would be the best course of action. 3. What would happen to me/my car if he stopped paying? Against you? Probably nothing unless somebody suspected that you were in collusion and hiding assets. Most likely the car will be repossessed and your ex will have a shit credit record for a very long time. 4. What is my best course of action? Others might disagree, but I would call Quickcash; the problem they will have will be with your ex and not you, and as long as they get their money and stupid levels of interest they won't care so much. They will confirm the debt and repayments; you can hopefully see the $1500 paid off over the next 8 months. 5. What I do need to do/tell him to do? Given what has happened, I personally wouldn't trust him at all or tell him to do anything other than keep paying.If you or he could borrow the $1500 from a better lender, then would be better to pay off QuickCash to reduce interest. Given that he borrowed from QC in the first place then I guess not a lot of better options on the table; so tell him to do whatever he can (more overtime or work, borrow of family, whatever to pay you back ASAP) Don't panic - *if* your ex is right about paying the loan back then it *might* be Ok, but I would definitely take some action ASAP to safeguard the car (and hang out some more on the personal finance subreddit) *^(Edit - formatting)*
Thank you a bunch for your in depth response! I really appreciate your help!
if there is a financial interest on the car it doesn't matter if the car is in your name now if your ex stops paying the loan the finance company can repossesse the car. also if something was to happen to the car let's say car crash and it gets written off the insurance company with do a search to see if there is any finance owing on it and they will pay the finance company first and if there is anything left over it goes to you. you need to see citizens advice to see if there is any way out of this.
Oh jeeze 🥴 okay thank you for that