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Australian Motor Finance Has Gone Bust

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  • Australian Motor Finance Has Gone Bust

    I have been trying to get hold of my finance company all week with no result so I decided to with hold this weeks payment thinking this would spark a frenzy of phone calls and i would then be able to speak to them about another matter. However they never called about the stopped payment

    Thinking this to be a bit weird I decided to call DOCEP and they promptly informed me that the company had gone BUST and was in liquidation:o

    So now what?
    They told me that they went bust in august meaning I have lost about 1200 dollars so far. DOCEP told me to stop all future payments till I here from some one but they did tell me what happens now and I'm starting to stress about it a little.

    Will we lose our beloved car?
    Will we get to keep the car for free?
    Will some one take over the debt (doubt it cause they where a high risk lender and personally I wouldn't lend me 17000 with my credit history)?

    Anyone able to fill in the blanks and give me some advise?

    Cheers in advance

  • #2
    potential profit =D...

    seriously though i would keep putting the money away as if i was making payments and wait to see what the outcome is.
    sigpic
    Its so small

    http://www.perthstreetbikes.com/foru...e_view&id=9156

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    • #3
      If you paid any money to them AFTER they went into liquidation, you're entitled to it back (That is, if they were trading whilst insolvent, they've broken the law). However, your obligations to pay the loan out within the terms of the contract still exist, so I wouldn't go on a spending spree just yet.

      Your loan will probably be taken over by someone else, under the same conditions as currently.

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      • #4
        Yeah similar thing happened to me with Great southern.

        Whilst the company had gone into liquidation I didnt technically owe them the money I was paying off for the investment - however all this changed when Bendigo bank bought the debt - I then owned them the Money.

        Do as lo1ux has suggested - put the money away into a seperate savings account for when someone buys the debt and tries to make you fulfill the original agreement.

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        • #5
          What happens if no one buys the debt?

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          • #6
            ^^^^^^^^What he said???????????????????????

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            • #7
              I would speak to someone else at Docep, obviously the creditors will want there money and I would say they have security over your vehicle. Also would be interesting which bank/s were funding them, they may try and salvage the loans. I'm not sure I would be breaking the contract without concrete advice, as by breaking the contract they might be able to repossess your car. How have you lost $1200 by the way???

              Let us know how this pans out.

              Would be good if you do get to keep ypur vehicle without paying for it.

              Comment


              • #8
                Somebody will buy it. It might not be at face value, but who wouldn't buy a large chunk of debt at a small % of face value?
                For LAMS information and resources - http://www.perthstreetbikes.com/foru...thread-156358/
                For LAMS discussion and to ask questions - http://www.perthstreetbikes.com/foru...thread-143289/

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                • #9
                  Originally posted by barfridge View Post
                  Somebody will buy it. It might not be at face value, but who wouldn't buy a large chunk of debt at a small % of it's value as a return?
                  For LAMS information and resources - http://www.perthstreetbikes.com/foru...thread-156358/
                  For LAMS discussion and to ask questions - http://www.perthstreetbikes.com/foru...thread-143289/

                  Comment


                  • #10
                    Originally posted by barfridge View Post
                    Somebody will buy it. It might not be at face value, but who wouldn't buy a large chunk of debt at a small % of face value?
                    Wouldn't the liquidators already have tried this before liquidating

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                    • #11
                      Originally posted by HughDMan View Post
                      How have you lost $1200 by the way???
                      DOCEP told us that they have been bust since august which means that total payments would equal about 1200 by now. The problem (and this is why DOCEP told us to stop payment) no one can confirm that the money is going where its is suppose to and in 4 weeks time the account it was going into won't exist!

                      As for which bank/s where funding them - from what I can gather, none of them where. They were under writers and they wrote there own loans. I think they where funded by private investor/s who pulled the pin when the economy went south.

                      Comment


                      • #12
                        Originally posted by HughDMan View Post
                        Wouldn't the liquidators already have tried this before liquidating
                        Liquidating is selling the book or business. Someone will buy it if some bank doesn't pop up as the silent partner.

                        Sorry to burst your bubble but i'd put that cash away, i'm 99% sure someone will be asking you to fulfill that contract.

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                        • #13
                          I reckon so too.

                          But the problem is who.

                          Who is going to buy debts from a high risk lender who obviously took too higher risk because they went bust. At the end of the day who ever buys the debts will have to be satisfied that they are going to get there money back. Kinda hard to prove if the original lender couldn't even get the money back in the first place.

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                          • #14
                            Originally posted by Gremlin1981 View Post
                            I reckon so too.

                            But the problem is who.

                            Who is going to buy debts from a high risk lender who obviously took too higher risk because they went bust. At the end of the day who ever buys the debts will have to be satisfied that they are going to get there money back. Kinda hard to prove if the original lender couldn't even get the money back in the first place.

                            Someone will still buy the debt.

                            As said, they might not pay the full amount it is worth, but someone WILL buy it, your debt won't magically disappear.

                            As said, put the money away, because sooner or later someone will be chasing you for it.

                            Whoever buys the debt doesn't necessarily have to get the MONEY back, if they have assets secured to the loans, they own those assets.

                            It may have been high risk, but the interest rate applied will have taken that into account. Combine that with maybe the buyer getting it at below the book value, and someone will buy it. The price will go down until there is a buyer if need be.
                            “Crashing is shit for you, shit for the bike, shit for the mechanics and shit for the set-up,” Checa told me a while back. “It’s a signal that you are heading in the wrong direction. You want to win but crashing is the opposite. It’s like being in France when you want to go to England and when you crash you go to Spain. That way you’ll never get to England!” -- Carlos Checa

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                            • #15
                              So they could just repo your bike to recoup the losses.

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