QLD Car Finance - Inherited Car Immobilised Due to Delinquent Loan?

[Suzie Q]

Hi there,

This s a long story. In 2013 I lent my mum over $6000. In 2015, instead of paying me back, she bought me a car on car finance. The loan was taken in her name, and the car is registered in her name. Because she has bad credit, the car came with a code activated immobiliser. The car was purchased on the Gold Coast, and it is now in Townsville, where I live and study. This is my first car, and I am quite new to this.

Early 2016, I completely lost contact with my mum. She has serious mental health problems, and has changed her mobile phone number, moved house, and blocked me on facebook. When I reach out to her she abuses me. I can assure you that her hostility does not come from any fault of my own, simply paranoid mental health problems and possible drug abuse.

A few months ago, I stopped receiving immobiliser codes (a code must be entered to get the car started, which is updated weekly on the contingency that the weekly repayment has been made). This means that she has stopped paying off the car. I have been in touch with the company that provides the codes several times over the course of the last few months. They will not give me details of the debt collector, and have apparently passed my details on to the company.

I do not want this car any more. It runs perfectly well, but is now just sitting in my apartment parking lot, unable to be moved. I understand that I can not legally sell it to the wreckers, and of course it would be unethical to sell it to a private buyer. I also believe that to have the immobiliser removed would be illegal.

I believe that the amount still owing is not more than a few thousand dollars (3-5), certainly more than I can afford, being a completely independent uni student.

What can I do to get rid of it? Is there any way that I can legally make it usable for me, or sellable?

Thanks for any help, much appreciated

 

[Rob Legat - SBPL]

I would suggest doing a PPSR search on it to find out the name of the finance company (if you don't know). Then contacting them and asking them to collect it.

Alternatively, if the car is not registered in your name, you could just have it towed/pushed to the nearest kerbside of the road and let Council start dealing with it as an abandoned vehicle - but I wouldn't suggest you should actually do that.

 

[Suzie Q]

I would suggest doing a PPSR search on it to find out the name of the finance company (if you don't know). Then contacting them and asking them to collect it.
Alternatively, if the car is not registered in your name, you could just have it towed/pushed to the nearest kerbside of the road and let Council start dealing with it as an abandoned vehicle - but I wouldn't suggest you should actually do that.

Hi Rob, thanks for the help.

I've done a bit of googling and I have a concern re. repossession. I understand that the debt collectors cannot repo the car without owner's permission if the amount owing is less than 10k. Therefore, since I am not technically the 'owner' of the car, will they need my mother's permission to collect it? She is MIA.

Also, since I am assuming that the repo company is from the gold coast, and the car is now in Townsville, will they bother collecting?

 

[Rob Legat - SBPL]

To answer your three questions:

1. No, they will probably be able to repossess regardless of the amount outstanding;

2. They don't need your mother's permission to collect the car; and

3. That's a commercial decision for the lender, based on the value of the car/its ability to sell/costs of repossession and holding/the amount owing on the loan. You can't force the lender to take the vehicle, and they can't be forced to remove their interest except by a court.

To explain 1: The amount you've quoted regarding repossession isn't correct. Under the National Credit Code, a lender needs court consent to repossess mortgaged goods if the amount owing is the lesser of:

(a) Under 25% of the amount of credit provided; or
(b) $10,0000.

So, if the total amount of credit provided was $30,000 then the lender doesn't need court consent to repossess unless the amount outstanding is $7,497 or less (24.99% of the credit provided). Be aware that 'credit provided' includes fees that we financed when the loan was taken out.

Given that you've mentioned the sum of $6,000, I'd guess the amount of the loan was $10,000 or less - so the 24.99% applies.

There are two exceptions to the above: continuing credit contracts, or where the lender believes the borrower has disposed of the goods. Given your mother has given you possession of the car, and isn't likely to have told the lender, I'd say it's a good bet they'll rely on that second one if they come to repossess.

To explain 2: Without court authorisation, a lender cannot enter residential premises to repossess an item without the occupier's informed, written consent. This necessitates the provision, and signing, of a Form 13 Consent to Enter Premises which confirms you have the right to refuse consent.

You'll generally find the repossession agent will comply with this, as it's a strict liability offence with a penalty of up to around $500,000 if they don't.

If the car isn't on residential premises, the consent requirements don't apply. Also, any occupier can give the consent.

 

[Suzie Q]

Hi Rob, thanks again for your help.

I will renew efforts to find the debt collector and get rid of this accursed vehicle.

Cheers