In 2014, I bought a Toyota Avanza at Toyota dealer and finance was arranged by Toyota finance. In 2015, I lost my job in August 2015. I was retrenched. I missed one or two payments. In October 2016, I was called to return the vehicle back to the creditor to avoid legal action. I cooperated. They sent someone to collect the car. I finally agreed to hand over the vehicle back to them.
I was informed the vehicle was sold via auction and I was liable to pay a shortfall of around R75000. The person who bought my car on auction was not charged vat on their invoice.I was contacted by Wesbank to pay the shortfall in 2016. I informed them that I had taken a shortfall cover/ insurance when I bought the vehicle to cover shortfalls when I sold the vehicle. Does the shortfall cover I took not cover shortfall related to a shortfall against auction?Why was I given the chance to sell the vehicle on my own first? I think I would have sold it at a more reasonable price. I also feel that the vehicle was sold for an unreasonable low price way below the market value.
Considering that this was a business car.
I am now being contacted by attorneys firm in Pretoria requesting payment of shortfall to Toyota finance. The attorneys have informed me that they have already taken my case to court, without informing me. They are now saying they will proceed with the legal action against me and I will be blacklisted at least for 4 or 5 years if I don’t make payment arrangements.
Please advise. What action should I take now?
Thank you for getting in touch.
If only you spoke to us sooner. Unfortunately, you are liable for the shortfall. The cover that you took out probably lapsed when you defaulted on the monthly repayments. You can just make sure about that. Speak to someone at Wesbank with regards to that.
As for the attorneys, they are fully within their rights to litigate. I would suggest that you have a look at your budget to see how much you can afford i.t.o repayments. It is important that you repay an amount which you can actually afford. If they do not want to agree to your offer, wait until the court date and present your budget to the magistrate.
Make sure that they have your correct address detail so that you will be 100% sure when the court date is through the summons that they must issue to you. If you do not show up at court they will get the order they ask for on the day.
You can also consider lodging a complaint with the National Credit Regulator and the Credit Ombud if you feel that you have been treated unfairly. Whatever you do, make sure that you have all correspondence in writing.