Santander Consumer Finance - Car Personal Loan

Just under a year ago I purchased a vehicle from a local Ford Dealer and they sourced the finance via Santander Consumer Finance but this was not a standard Hire Purchase styled finance but a Personal Loan. Now this wasn't a concern to me as the rate was very competitive and as it was a personal loan this meant that this finance wasn't attached to the vehicle like standard HP agreements are.

In the last week I contacted a dealer about possibly looking at another car and I was asked the question if my current vehicle had any outstanding finance. As the rate on this loan was good and I was going to use some additional saved funds to pay the difference I thought I would just keep the same loan so I said that it hadn't any outstanding finance because I knew that the finance was a personal loan. To my embarrassment the dealer came back saying that the HPI check listed the car being financed by Santander and that would have to be settled first. I explained that this is very odd because I had confirmed already with Santander that the loan wasn't attached to the vehicle. He did say that it is listed as a Personal Loan but as it was on the HPI register it would have to be settled before they would look at the vehicle.

I contacted Santander back and they said that yes it is registered on HPI but as a personal loan. They said that they are a car finance company so they add the details of the finance to the HP register as a matter of course and it entirely depends on how it was set up. They then said it would be up to a dealer to take a decision/chance on this but if contacted by a dealer they would be happy to say that they have no interest in the vehicle.

So my questions are:

How can a finance company register information on the HPI database against a vehicle that they have no interest in?

Can I force them to remove such an entry?

Is this in anyway against consumer finance law or a breach of the Personal Loan agreement I have with them, (of which I am now reading in depth further)?

Many thanks in advance for any help.
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Comments

  • Dabooka
    Dabooka Posts: 839 Forumite
    Have you checked the loan t&C's to check it's not simply a secured loan against the car? Even if it is, I'm not certain how or if that results in Santander showing a claim against it on the HPI, but it seems to fit the description? I'm sure someone will be along soon to shed some mre light or ask the ight questions!
  • The type of loan described on the forms is a Fixed-Sum Load Agreement and there is nothing about it being secured on the car anywhere. If it was secured, Santander wouldn't I guess be willing to say to a dealer that they have no interest in the vehicle.
  • DOH!! Fixed-Term Loan Agreement and not as I put Fixed Term LOAD agreement.
  • Dabooka
    Dabooka Posts: 839 Forumite
    Yeah, that bit sounds odd. Why would a company occasionally register non-essential information on the HPI database? If their telephone agent was telling the truth, ask them to simply remove it. I guess they'll not, in which case you can ask why.

    I'd also be amazed if they'd tell the dealer the same, but what the hell give it a g and ask your dealer to call them.
  • Thanks Dabooka. I was thinking of giving the dealership a call and asking them to talk to santander about it. When I got the finance, I got a better rate going direct to santander and I told the dealer this. The dealer then went back to santander to complain about this fact and then santander agreed to match the rate so to make it easier for me I just went with the dealer.
  • tbourner
    tbourner Posts: 1,434 Forumite
    I have Santander finance as well on a car I'm looking to sell. I've writtent to them asking to remove the finance link on HPI, so I'll see what they say.

    Does anyone know if you can overpay to Santander? The contract just gives settlement ammounts at different terms of the agreement, but nothing about paying a lump off in the middle.
    Trev. Having an out-of-money experience!
    C'MON! Let's get this debt sorted!!
  • I have contacted the main finance man at the dealer this morning. He was surprised about the HPI reference and is going back to Santander to see what is going on. He believes like me that it shouldn't be referenced. He asked me what outcome I would like and I said I believe it should be removed completely. I am awaiting a call back from him.

    With regards to overpayments, when I was sold this finance I was told by the sales adviser that it was interest added daily. When I got the proposal I noticed that it wasn't and it was based on the rule of 77, (or whatever it's called). I wasn't best pleased because daily added interest means that overpayments help, but I think with the rule of 77 I can't seeing it make much of a difference because the add interest up front and then give you a refund based on a sliding scale. Paying off a lump sum will only affect the balance of the loan and not the interest and the rebate is still the same regardless.

    Well I think it is that way anyways so check if your agreement is a daily added interest or rule of 77 interest up front style loan.
  • tbourner
    tbourner Posts: 1,434 Forumite
    I'm not really fussed about having lower interest TBH, I just want to be able to pay a big chunk into it so I don't spend it!! I wasn't sure if they let you as the paperwork suggests you either pay the monthly amount or the whole lot!
    Trev. Having an out-of-money experience!
    C'MON! Let's get this debt sorted!!
  • Well the dealer got back in touch with me and said that Santander would do this but I can call them and INSIST that they remove the vehicle from the HPI database and they should do it. I just called Santander back and hey presto they asked me why I wanted it removing and I said that it shouldn't matter why as it's a personal loan not tired to the vehicle but I did say that I had considered swapping the car etc etc. She then said that it was no problem and she would remove it from HPI so I will now wait and see.
  • JimMac70 wrote: »
    DOH!! Fixed-Term Loan Agreement and not as I put Fixed Term LOAD agreement.

    You were right the first time, its heavily weighted in their favour:D

    AMD
    Debt Free!!!
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