Car Finance PTSB

Hi,

I took out car finance with PTSB in 2008 for a brand new car. I was only 20 when I applied for the loan and was told by the accountant in the car sales office that I would need a guarantor as I was under 23 years. I specifically asked that the car be in my sole name, was reassured that the guarantor was only there until I was 23. In the past few months I was struggling to pay back loan (never missed a payment though) and made arrangement to reduce the payments on finance with PTSB.

I have now been told by PTSB that in order to reduce payments that the Borrower 2 needs to sign the form, I have argued this saying there is no Borrower 2 I am the sole Borrower and that I only had a guarantor until 23 years of age. PTSB have told this is incorrect information and that the "guarantor” is actually “Borrower 2”. I never wanted Borrower 2 on my car loan and now in order to receive decrease in payment Borrower 2 needs to sign form and is refusing to do so. I then sent an application form to replace Borrower 2 with my partner, but PTSB refused credit application for my partner to go on loan.

I cannot decrease my payments as Borrower 2 refuses to sign form and he has sent in a request for his name to be taken off finance, in order for his name to be taken off finance I need to find a replacement but PTSB refused my replacement for credit reasons so I do not know what to do. I was given wrong information when applying for finance as I would not have put Borrower 2 on finance application if I knew that he was to remain on account.

Can you help me in how to resolve this? I simply want to reduce payments and have Borrower 2 off account as he should never have been place on Finance loan. I am extremely angry at the treatment by PTSB and the incorrect information I was given when applying for finance. I am receiving angry letters from PTSB regarding replacing Borrower 2 but how can I replace him if I was refused???

It's a tough one. Unfortunately unless you have something in the terms / conditions of your loan, or something in writing from the car sales person, then you are going to have a tough time getting out of this one.

What term, balance and interest rate are you paying? The other option is to try to pay off the loan if you can get refinance somewhere else like through a credit union.

Be very very careful if it's a restructure that you are looking for, as this would be a new agreement, first of all. With HP, if you have paid back over half of the money borrowed originally, including any deposit you put down, you can hand the car back to PTSB.

If you restructure having already paid back a lot of money, you would be back to square one, as you would again have to have paid back half of this new agreement to avail of this piece of consumer law. Swyper's option of getting credit elsewhere to settle could also work, in either full and final, or partial and final settlement.

By the sounds of it, 'Borrower 2' is stuck as guarantor on the debt, but I don't understand the refusal to sign off on a lower repayment. Are they aware that their credit rating is at risk if you are unable to pay and eventually default completely or have the car repossessed, and they as guarantor would also be liable? It's highly unusual for a creditor to surrender a guarantee from someone, on whom the original laon was based, to allow someone of possibly higher risk to assume the role of guarantor as well - I'd forget about that one, and concentrate on persuading Borrower 2 to talk to the finance company.

www.frost.ie

I am extremely angry at the treatment by PTSB

Click to expand...

Hi Calla

I don't see why you are angry at PTSB? They have done nothing wrong here as far as I can see. There is no reason for them to release a guarantor/second borrower especially when the first borrower acknowledges that they are in trouble.

I presume that there is nothing in the contract anywhere mentioning the age of 23?

I applied for the loan and was told by the accountant in the car sales office that I would need a guarantor as I was under 23 years.

Click to expand...

Sorry to be blunt, but you need to be angry with yourself for believing something which a car salesman told you without checking it out independently.