loan

[snuggles0302]

what can a finance company do if you dont pay your loan and dont have the collectaral that you put on the loan anymore

[dizmouk2009]

They can build up the interest, demand a payment which if you are unable to pay they will probably offer a a settlement which will be less than the full amount. What happens if all else fails is they send in the bailiffs.

[alfiesgirl]

The finance company can take default action in the county court and a default summons will be issued to recover the debt.

[factor-fiction]

I agree with dizmouk2009 except I doubt they'd offer a settlement amount at this stage- if they did that everyone would 'try it on' by refusing to pay and demanding a discount

[alfiesgirl]

So can the bailiffs be sent in without going to a county court first..bearing in mind that the borrower no longer has the collateral that he had when he took out the loan?

[Sandy-Wroe]

I'm not sure what they could do about getting their money back, but they could ensure that the borrower never gets credit again.

[hc4361]

One the finance company has a county court judgement against you they can take possession of your goods (send the bailiffs in); put a charging order on your house so they get their money when the house is sold; get an attachment of earnings so your employer gives them a portion of your income every pay day and get money directly from your bank accounts. But only if the court allows it.