absa vehicle finance: from debt review to boot on a neck

[username and 23 others]

- bought vehicle
- put under debt review
- off debt review ~1 yr
- pd up arrears
- got a letter stating future payments of ~ 8500pm a few months back
- this week got a unilateral letter stating payments will be ~ 17500 for 6 months and then back to 8500
- thereafter another 6 months ~23000 and then back to 8500

Is this legal/allowable?
(this is all the info I have that was shared to me)

thanks

 

[Sideshow Bob]

If it is a well known FSP, then did you try to send them that letter that you received few months ago and ask for explanation ? Make some noise on FB as well..

 

[username and 23 others]

Sent all documentation and asking reasons. Just waiting for a reply.
Thanks for the FB tip.

 

[Sideshow Bob]

Sent all documentation and asking reasons. Just waiting for a reply.
Thanks for the FB tip.

Negative social media posts "generally" get high priority internally, assuming their communication department is clued up.

Tag on X, FB whatever, if you have proper documentation. Don't accuse them of course but say that this is the situation and say you are confused why you have been provided conflicting information etc..

 

[Kosmik]

The creditor should already be on the back foot. As you went into debt review, then short of a retrenchment etc, they can be seen as reckless lender which the NCA frowns against. Its also quite unusual that the debt wasn't called and settled/negotiated as part of the review. The lender can't just alter the contract or agreement post that, there should be a consultation and to force such high repayments is again a credit risk assessment.

I would consider:

- settle and refinance elsewhere
- return and settle the vehicle and move on.

Not to be picky/personal but someone who underwent debt review should really not be loaning a vehicle with such a high payment.

 

[Robocop]

Seems like the Op left debt review voluntary. Under normal circumstances debt review is not lifted until all debts are settled, not just the arrears. In this case the creditors have full right to demand payment as they see fit.