Credit Agreements - incapacity to work due to illness?

[hj2k_x]

My father can no longer work due to Alzheimer's. Disease. My mother has had to give up work to take care of him.

We have an instalment sale contract for our car which we are struggling to repay. Is there any way that the Nationa Credit Act or anything else allows us to get out of repayments considering this?

I know some of our creidtors have significantly reduced monthly instalments and some have even written off the debt entirely, but are they under any obligation to do this?

The company with which the credit agreement for the car is, insists on full payment each month, every month, despite knowing our situation.

 

[MadMailMan]

Check if your father has any insurance policies "tied" to the agreement. Most of these policies have a disabilty clause. I had to have one of these policies when I got my mortage and I also have one for my credit card. Good luck!

 

[gregmcc]

Best check out the contract you signed and see if there are any clauses about disability cover.

 

[hj2k_x]

I have requested a copy of the orginal agreement from the finance house. I remember there was the option of some insurance at the time we got the car. Just not sure if we went for it cos it was quite a bit more money

 

[koeks]

why not sell the car? if i may ask? or downsize?

 

[hj2k_x]

why not sell the car? if i may ask? or downsize?

Not much downsizing to do from a Citigolf

And it is the only car we have.

 

[hj2k_x]

Apparently we did not choose any insurance cover when we got the car, so there is not much we can do. :|

 

[marco]

The NCA does not cover this. The bank will repossess and you will be liable for the diffs after auction.
In my case, I had no job or assets when they repossessed my car. Car was sold at R30 000.00 below what I owed. Never heard a word from them since even though I am back on my feet.

 

[kingmonty]

The NCA does not cover this. The bank will repossess and you will be liable for the diffs after auction.
In my case, I had no job or assets when they repossessed my car. Car was sold at R30 000.00 below what I owed. Never heard a word from them since even though I am back on my feet.

Check your credit report - you'll probably find a few judgements against your name.

To the OP - are there any life assurance policies that extend to disability cover?

 

[avdp]

A few things to consider :
In whose name is the car financed?
Are any if you employed with any form om income?
Consider debt counselling?

 

[hj2k_x]

To the OP - are there any life assurance policies that extend to disability cover?

I don't think so, unfortunately. Will double check, though.

 

[marco]

They just came and took the car back. No court case, no judgement. Only negative reports on Transunion ITC which are gone now.
I presume he is older than 50, so what if he gets listed. His chances of getting a salaried job is next to null as we all know. So no more accounts for 5 years then the problem goes away.
Best to go see the bank and explain to them. They are not the bad guys as we sometimes think.