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Thread: Default On Payments on Hire Purchase Vehicle.

  1. #1
    Senior Member soupdragon's Avatar
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    Default On Payments on Hire Purchase Vehicle.

    OK a friend has rather stupidly allowed themselves to be used as a guarantor for a friend of theirs to buy a Toyota Vigo on HP.

    Now they have been informed that the buyer has missed several payments and cannot be found.

    It appears that the buyer has sold the vehicle to a family member in the North of Thailand and done a runner.

    Does anyone have any experience of this sort of thing and what are the options open to my friend to avoid be blacklisted.

    I have advised them to go to the finance company and explain the situation in full, I am sure this is not the first time this sort of thing has happened in this country.

  2. #2
    Senior Member 2girls1cup's Avatar
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    If its on finance how can he change ownership?
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    Senior Member billpay's Avatar
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    As far as I know, they are still fully responsible for the debt.
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    The sooner you fall behind, the more time you'll have to catch up.

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    Senior Member billpay's Avatar
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    Quote Originally Posted by 2girls1cup View Post
    If its on finance how can he change ownership?
    This Is Thailand.
    The sooner you fall behind, the more time you'll have to catch up.

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    Senior Member soupdragon's Avatar
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    Quote Originally Posted by 2girls1cup View Post
    If its on finance how can he change ownership?
    It appears that it has been sold to a family member and moved to another part of the country without the blue book actually changing hands which as you say cannot be done.

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    Senior Member soupdragon's Avatar
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    Quote Originally Posted by billpay View Post
    As far as I know, they are still fully responsible for the debt.
    That is my take on it. The buyer has clearly broken the law by selling the vehicle but unless he can be traced and prosecuted my friend is on the hook for the debt.

  7. #7
    Senior Member 2girls1cup's Avatar
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    Quote Originally Posted by soupdragon View Post
    That is my take on it. The buyer has clearly broken the law by selling the vehicle but unless he can be traced and prosecuted my friend is on the hook for the debt.
    Surely the finance company's name is the registered owner?
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    Senior Member soupdragon's Avatar
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    Quote Originally Posted by 2girls1cup View Post
    Surely the finance company's name is the registered owner?
    That's right. I bought my truck on finance and I didn't get the blue book until after I completed the payments.

    In this case the Vigo has been sold illegally and the new 'owner' will never get a legal blue book for it. However TIT and documents can be obtained for a price.

  9. #9
    Senior Member geir's Avatar
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    So they have no chance to track the car? If not I guess your friend is responsible.
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    Senior Member soupdragon's Avatar
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    Quote Originally Posted by geir View Post
    So they have no chance to track the car? If not I guess your friend is responsible.
    I think that is there only hope but how many Vigos are there in Thailand. If the plates have been switched I think that is a needle in a haystack.

  11. #11
    Senior Member Geespot's Avatar
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    Been answered guarantor will inherit the debt. If the car is repossessed then sold by finance company or a value settlement then possible negotiation of anything outstanding
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    Senior Member soupdragon's Avatar
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    Quote Originally Posted by Geespot View Post
    Been answered guarantor will inherit the debt. If the car is repossessed then sold by finance company or a value settlement then possible negotiation of anything outstanding
    I think that is true Gee.

    What I guess I am asking is would the police be helpful here, are there any public or private nationwide agencies set up for the purpose of retrieving vehicles, what about private detectives.

    I am sure my friend would be willing to pay for any help in deducing the debt.

  13. #13
    Super Moderator LivinLOS's Avatar
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    As stated Guarantor is exactly what it sounds like, guarantee'ing the debt payments (usually of someone without any assets) at best they screw up their credit rating, lose access to loans and mortgages, get a few years without ability to gain credit.. But eventually they can build it back.

    At worst, any assets they do have will be stripped from them, if they own a house, land, car, or anything themselves they can be forced to liquidate that on threat of jail time for non payment. Only when someone really has nothing can they claim they have no ability to pay in which case jail would be unusual. Its fairly easy to do checks on vehicle and property ownership, I did it on the family of the girl who caused my bike wreck, so they should take steps to protect any non moveable property straight away.

    If the friend also has nothing, its a bummer but its not life changing.. If the friend has any assets, its a much bigger deal.

  14. #14
    Senior Member soupdragon's Avatar
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    Quote Originally Posted by LivinLOS View Post
    As stated Guarantor is exactly what it sounds like, guarantee'ing the debt payments (usually of someone without any assets) at best they screw up their credit rating, lose access to loans and mortgages, get a few years without ability to gain credit.. But eventually they can build it back.

    At worst, any assets they do have will be stripped from them, if they own a house, land, car, or anything themselves they can be forced to liquidate that on threat of jail time for non payment. Only when someone really has nothing can they claim they have no ability to pay in which case jail would be unusual. Its fairly easy to do checks on vehicle and property ownership, I did it on the family of the girl who caused my bike wreck, so they should take steps to protect any non moveable property straight away.

    If the friend also has nothing, its a bummer but its not life changing.. If the friend has any assets, its a much bigger deal.
    Cheers again that is what I thought. They have a house, small business and a car and jewellery with a tidy value.

    I have already suggested they start to dispose of assets to the family but am not sure the situation they are facing has truly sunk in.

  15. #15
    Super Moderator LivinLOS's Avatar
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    Yeah thats worst case.. And courts dont look kindly at someone liquidating everything and then claiming they are pennyless...

    While jail for bad debts on poor people is not a common thing, courts can impose jail sentences and if they see that pattern may use that leverage, eg a verbal warning to find a solution and then adjurn for a month or so to let the parties work it out or not.

  16. #16
    Senior Member Petter's Avatar
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    allowed themselves to be used as a guarantor
    the hole point with a guarantor I suppose, is to have a guaranty that money are paid acc to agreement, if the buyer cant the guarantor has to

    That's what the guarantor legal have signed on
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    Senior Member Robaht's Avatar
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    Quote Originally Posted by geir View Post
    So they have no chance to track the car? If not I guess your friend is responsible.
    Thinking about this, if you are ever in this situation just stash a farang-sim card on the chassis, better than Lo-Jack in Thailand! Probably locate it within minutes...
    geir, soupdragon, LivinLOS and 2 others like this.

  18. #18
    Member Minder's Avatar
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    Quote Originally Posted by LivinLOS View Post
    Yeah thats worst case.. And courts dont look kindly at someone liquidating everything and then claiming they are pennyless...

    .....
    I would have thought so to but having been in a similar situation a year or so ago and seeking advice from a Thai based law firm Legal business advisor - Business Brokers, business for sale, Buy & Sell Businesses in Thailand I was advised that asset shedding was not as big a deal (aka a crime) in Thailand as it is in the West - almost like it was the expected thing you'd try to do when the hyenas come for your carcass... 555

    However, much like SD's mate it would probably have been more trouble than it was worth, and in the end, they will take whatever you have left or overlooked and charge you a premium to do so anyway, so usually it is really a case of suck it up and pay the existing debt now.

    No good news in these stories. The finance company are going to get their money - one way or another.

    Frankly, if I were that friend, I'd be preparing myself to write off the vehicle altogether if I have to - it could be long gone by now, sold to yet another new "owner" or chopped up for parts for 10 other cars.

    Recovering the vehicle from the relative or whoever has it now is only part of the problem - it is unlikely to sell for enough to cover the debt anyway - the finance company's "recovery costs", late payment fees, interest accrual and any other shortfall will ultimately be worn by the "Guarantor".

    My suggestion would be to get legal advice from someone like a Sunbelt lawyer and have them approach the credit company on your behalf and work from there. The friend needs to get out of the contract they have with the HP company
    ( even if the new owner relation is a solid citizen and ready to keep making the payments - the friend could be back in the same situation in a year or two if the same finance contract remains)
    Last edited by Minder; 10th August 2016 at 15:52. Reason: additional details

  19. #19
    Senior Member Geespot's Avatar
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    There is a further possibility and very common where the new buyer takes over the finance payment directly or it may well be via the original financee

    If it allegedly a family member of the financee it would be worth tracing them. They may be none the wiser and sitting with the vehicle

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    Time for a Private Investigator to track the vehicle and jack it.

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