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Santander Consumer Finance - Car Personal Loan
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# 1
JimMac70
Old 19-09-2010, 5:12 PM
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Default 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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# 2
Dabooka
Old 19-09-2010, 6:15 PM
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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!
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# 3
JimMac70
Old 19-09-2010, 6:35 PM
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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.
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# 4
JimMac70
Old 19-09-2010, 6:38 PM
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DOH!! Fixed-Term Loan Agreement and not as I put Fixed Term LOAD agreement.
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# 5
Dabooka
Old 19-09-2010, 6:43 PM
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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.
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# 6
JimMac70
Old 19-09-2010, 6:53 PM
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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.
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# 7
tbourner
Old 20-09-2010, 10:29 AM
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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.
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# 8
JimMac70
Old 20-09-2010, 11:09 AM
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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.
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# 9
tbourner
Old 20-09-2010, 4:03 PM
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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!
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# 10
JimMac70
Old 21-09-2010, 3:22 PM
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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.
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# 11
AMILLIONDOLLARS
Old 21-09-2010, 3:42 PM
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Quote:
Originally Posted by JimMac70 View Post
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

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# 12
tbourner
Old 21-09-2010, 4:02 PM
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Santander phoned me today after I emailed them, didn't mention the HPI but said I could sell the vehicle and pay off a lump sum, which would reduce the term but keep the monthly payments the same.
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# 13
AMILLIONDOLLARS
Old 21-09-2010, 4:03 PM
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Better get it in writing for future reference

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# 14
warren88
Old 21-09-2010, 5:59 PM
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Quote:
Originally Posted by tbourner View Post
Santander phoned me today after I emailed them, didn't mention the HPI but said I could sell the vehicle and pay off a lump sum, which would reduce the term but keep the monthly payments the same.
I also have a car on finance with Santander and was wondering something similar.

For example if I owe 10K over 3 years with interest and their fees included, and if I were able to pay off a lump sum, say 5K, I see that you have said it reduces the term, but does it reduce the interest as well the term as I wouldn't take as long to pay it off?

Regards,
Warren
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# 15
nelly12
Old 21-09-2010, 6:56 PM
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Guys,

Santander only register the vehicle on the HPI register as an additional protection for their customers. They do not have to do this but choose to pay the cost. By logging the vehicle it would prevent the vehicle from being sold should it be stolen. Am sure their customer services will assist you by removing the flag.

As for the lump sum payments mentioned earlier. All HP/personal loans etc arranged via dealerships (and many banks)has front loaded interest and therefore if a lump sum is paid off the agreement then it will only chop off a number of the monthly payments (ie. lump sum divided by the monthly payment). The total amount payable does not reduce even though the term reduces.

Hope this helps.
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# 16
warren88
Old 21-09-2010, 7:21 PM
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Quote:
Originally Posted by nelly12 View Post
As for the lump sum payments mentioned earlier. All HP/personal loans etc arranged via dealerships (and many banks)has front loaded interest and therefore if a lump sum is paid off the agreement then it will only chop off a number of the monthly payments (ie. lump sum divided by the monthly payment). The total amount payable does not reduce even though the term reduces.

Hope this helps.
Thanks for that Nelly, I was hoping the interest would reduce if the length of the term got shorter but aww well. So if I wanted to reduce the amount of interest could I just save and get to a stage where I could pay the remaining balance, say 1.5 years of paying the monthly payments, then get a settlement fee and pay it off that way, does this then reduce the interest as the term is shorter? (Sorry, I'm not too clued up on these HP agreements )

Also on a side note, would anyone know if there is a cooling off period on these Santander Consumer Finance agreements?

Thanks,
Warren
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# 17
nelly12
Old 21-09-2010, 8:03 PM
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Quote:
Originally Posted by warren88 View Post
Thanks for that Nelly, I was hoping the interest would reduce if the length of the term got shorter but aww well. So if I wanted to reduce the amount of interest could I just save and get to a stage where I could pay the remaining balance, say 1.5 years of paying the monthly payments, then get a settlement fee and pay it off that way, does this then reduce the interest as the term is shorter? (Sorry, I'm not too clued up on these HP agreements )Yes you are correct.

Also on a side note, would anyone know if there is a cooling off period on these Santander Consumer Finance agreements? No.

Thanks,
Warren
Hope this helps.
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# 18
tbourner
Old 21-09-2010, 10:40 PM
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Quote:
Originally Posted by warren88 View Post
For example if I owe 10K over 3 years with interest and their fees included, and if I were able to pay off a lump sum, say 5K, I see that you have said it reduces the term, but does it reduce the interest as well the term as I wouldn't take as long to pay it off?
You get a rebate of a certain amount when you settle, so yes, but not by a lot, and frankly not enough to care about.
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# 19
Cassigirl2012
Old 25-04-2012, 2:42 PM
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Default Santander car credit

I too purchased a car in 2008 on what I thought was hire purchase. I called Santander to ask if I could return the car as I had actually paid more than two thirds they said no I could not and that I could not sell it either. I was bewilldered so I started to investigate and went to the dealer to complain about the agreement and that I wasn't fairly treated or explained that the loan I had was a personal loan not a HP agreement, the salesman said that it was probably because it was a better rate of interest. Anyway my husband and I split up and I became into financial difficulty and couldn't meet payments so I stupidly turned a blind eye hoping that it would go away but it surely didn't. I got letters after letters from them until I got one from Anglia UK asking me for the payment arrears to be paid. Santander told me that they couldn't take the car back originally but they could take it back now I was in arrears and they could sell it but I would have to pay the difference. I know that if they send it to auction that it will not reach anything it is worth and I will end up owing them thousands of pounds but now that Anglia are after me I don't know what to do or where to turn as they are car reposession specialists. They could come and clamp the car and take it away but I need the car. I don't know what to do I am really in despair as I have lots of other debts that I am trying to sort out. Anyone here give me some advice please. Where do I stand if it is a personal loan surely it can't be secured against the car. I cant find my agreement either so I am really stuck on what to do.
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# 20
Peelerfart
Old 25-04-2012, 3:01 PM
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Painful reading indeed.
Space available for rent
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