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  • FIRST POST
    • Johnsta0419
    • By Johnsta0419 12th Jan 18, 6:01 PM
    • 8Posts
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    Johnsta0419
    Missold car finance?
    • #1
    • 12th Jan 18, 6:01 PM
    Missold car finance? 12th Jan 18 at 6:01 PM
    Hello all,

    I have a predicament and would appreciate any advice.

    My other half purchased a car from Chapelhouse in February 2014 and was advised that she could give the car back after four years or pay a final balance and keep it.

    The four years are up in February this year so we contacted Chapelhouse to find out when we return the car and if we needed to do anything else.

    Chapelhouse has now stated that we do not have the option to return the car and we must make the final payment.

    I have reviewed the paperwork my wife received at the time and it does not mention that the final payment is optional. Therefore, it is reasonable to believe that we have to pay the final amount and keep the car.

    As we always planned on returning the car, we are unable to make the final payment.

    My question is whether complaining about the advice provided at the point of sale would be worth it. Ideally, we would like to return the car and not have to make the final payment as we were advised we could.

    I know my wife should have read the contract before signing but she trusted that the information provided by the salesperson was correct.

    In addition, the contract just states the final payment amount so it is unlikely she would have questioned if this was optional after already being told it was.

    Thanks in advance.
Page 1
    • lincroft1710
    • By lincroft1710 12th Jan 18, 6:10 PM
    • 10,180 Posts
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    lincroft1710
    • #2
    • 12th Jan 18, 6:10 PM
    • #2
    • 12th Jan 18, 6:10 PM
    What proof is there that she was told she could return the car? You being present when the conversation took place would not be considered proof.
    • BoGoF
    • By BoGoF 12th Jan 18, 6:13 PM
    • 2,838 Posts
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    BoGoF
    • #3
    • 12th Jan 18, 6:13 PM
    • #3
    • 12th Jan 18, 6:13 PM
    What type of finance agreement is it?
    • Johnsta0419
    • By Johnsta0419 12th Jan 18, 7:03 PM
    • 8 Posts
    • 1 Thanks
    Johnsta0419
    • #4
    • 12th Jan 18, 7:03 PM
    • #4
    • 12th Jan 18, 7:03 PM
    We have a document that states "Finance Type: Dealer Finance".

    No evidence that they advised she could return the car other than her testament which is likely to be ignored.

    I was not present during the sale but my wife told me what the salesperson advised on the day she agreed to the sale, I have no reason to disbelieve her.

    It's frustrating but I am guessing that we don't have much choice without evidence of the face to face conversation that took place in February 2014.

    I suppose the moral of the story is not to trust anything that comes out of a salespersons mouth.
    • BoGoF
    • By BoGoF 12th Jan 18, 7:07 PM
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    BoGoF
    • #5
    • 12th Jan 18, 7:07 PM
    • #5
    • 12th Jan 18, 7:07 PM
    Does it say anything about early settlement?
    • bazzyb
    • By bazzyb 12th Jan 18, 7:36 PM
    • 1,081 Posts
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    bazzyb
    • #6
    • 12th Jan 18, 7:36 PM
    • #6
    • 12th Jan 18, 7:36 PM
    We have a document that states "Finance Type: Dealer Finance".
    Originally posted by Johnsta0419
    She should have a copy of the agreement and a copy of the pre contract information. Both of which should show the name of the lender, and the type of agreement ('dealer finance' doesn't give any indication as to what the agreement is).

    Does she know who the lender is? Who does she make her direct debit payments to?
    • lincroft1710
    • By lincroft1710 12th Jan 18, 7:38 PM
    • 10,180 Posts
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    lincroft1710
    • #7
    • 12th Jan 18, 7:38 PM
    • #7
    • 12th Jan 18, 7:38 PM

    I suppose the moral of the story is not to trust anything that comes out of a salespersons mouth.
    Originally posted by Johnsta0419
    The moral of the story is to check the paperwork before you sign, especially any clause which you are depending upon. Sadly many of us do not, so your wife shouldn't blame herself unduly.
    • Johnsta0419
    • By Johnsta0419 12th Jan 18, 7:53 PM
    • 8 Posts
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    Johnsta0419
    • #8
    • 12th Jan 18, 7:53 PM
    • #8
    • 12th Jan 18, 7:53 PM
    It says we can repay the loan in full at anytime and they will charge us interest up to 30 days after the settlement date.

    The payments are made to Barclays Finance. The documents do not state what type of finance product it is other than dealer finance.

    To be honest, I don't think we would have queried the paperwork if we had checked it. The paperwork states that a final payment is due at the end of the agreement, it is likely that we would have believed this was optional as the salesperson advised. The paperwork does not state whether it is optional or compulsory.
    • bazzyb
    • By bazzyb 12th Jan 18, 7:57 PM
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    bazzyb
    • #9
    • 12th Jan 18, 7:57 PM
    • #9
    • 12th Jan 18, 7:57 PM
    Can you see the words 'conditional sale' or 'personal contract purchase' on the paperwork? These are two types of agreements Barclays Partner Finance commonly use for dealer finance. I'm not sure if you are actually looking at the agreement or just a summary the dealer gave you.
    • neilmcl
    • By neilmcl 12th Jan 18, 8:45 PM
    • 10,424 Posts
    • 7,357 Thanks
    neilmcl
    Regardless of what type of finance agreement you should be covered by the Consumer Credit Act so you will have the option on voluntary terminating the agreement. You need to speak to the finance co. not the dealer.
    • Johnsta0419
    • By Johnsta0419 12th Jan 18, 8:46 PM
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    Johnsta0419
    I can't see any of those words on the documents we have. We have a document explaining the terms of the loan from Barclays and an order form from Chapelhouse for the car.

    The order form for the car states Dealer Finance. I've just noticed that the Barclays document states Fixed-sum loan agreement.
    • neilmcl
    • By neilmcl 12th Jan 18, 8:54 PM
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    neilmcl
    I can't see any of those words on the documents we have. We have a document explaining the terms of the loan from Barclays and an order form from Chapelhouse for the car.

    The order form for the car states Dealer Finance. I've just noticed that the Barclays document states Fixed-sum loan agreement.
    Originally posted by Johnsta0419
    This makes a difference. As it's not a finance agreement as such rather it's a loan then you have no rights to VT the agreement. I am surprised though that you have not the option to hand back the car. How much is the final payment.

    As the car is yours you may be able to sell it to pay off the final instalment.
    • bazzyb
    • By bazzyb 12th Jan 18, 9:16 PM
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    bazzyb
    As above, you have no right to return the vehicle as it is an unsecured loan. This should have been made clear to you by the salesperson, so you could certainly make a complaint although I'm not sure what the outcome would be.

    As suggested above your best option may be to sell the car privately and use that to settle the balloon payment, or if you want to keep the car instead you could look to refinance the balloon element. Note that if you are looking to sell privately, whilst the loan is not secures against the vehicle Barclays do tend to register an interest in it on the HPI register, so it would be worth checking this and ask them to remove the marker if applicable.
    • Johnsta0419
    • By Johnsta0419 12th Jan 18, 9:17 PM
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    • 1 Thanks
    Johnsta0419
    The final payment is about £4800. I've just done an online valuation and it said the car is worth £3300 so we will have to sell it and make up the difference.

    It's not ideal but it sound like it may be our only option.

    Thanks to everyone who has helped, it is much appreciated.
    • Johnsta0419
    • By Johnsta0419 12th Jan 18, 9:23 PM
    • 8 Posts
    • 1 Thanks
    Johnsta0419
    Thanks Bazzyb, I will make a complaint and see what happens..

    I will update the thread if I get a favourable response. I'm not holding my breath though.
    • tonyh66
    • By tonyh66 13th Jan 18, 7:50 AM
    • 1,047 Posts
    • 748 Thanks
    tonyh66
    can you not get a loan for £4800 to settle the finance, the monthly payments you make at the minute should cover it. Phone Barclays and see if you can re finance the final payment.
    Selling the car and making up the shortfall means you are paying £1500 out of your pocket and will have no car...
    • Johnsta0419
    • By Johnsta0419 13th Jan 18, 1:48 PM
    • 8 Posts
    • 1 Thanks
    Johnsta0419
    Thanks for the advice tonyh66.

    We've had a couple of kids since 2014 so need a bigger car now anyway. We will probably have to clear some of the finance by selling the car and pay the rest out of the budget for the new car.

    We've spoken to a manager at Chapelhouse, he said that Barclays do not offer PCP but he will send someone an email and get back to us.
    • bazzyb
    • By bazzyb 13th Jan 18, 2:36 PM
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    bazzyb
    We've spoken to a manager at Chapelhouse, he said that Barclays do not offer PCP
    Originally posted by Johnsta0419
    Rubbish. https://www.barclayspartnerfinance.com/business/financeproducts
    • neilmcl
    • By neilmcl 13th Jan 18, 2:51 PM
    • 10,424 Posts
    • 7,357 Thanks
    neilmcl
    Thanks for the advice tonyh66.

    We've had a couple of kids since 2014 so need a bigger car now anyway. We will probably have to clear some of the finance by selling the car and pay the rest out of the budget for the new car.

    We've spoken to a manager at Chapelhouse, he said that Barclays do not offer PCP but he will send someone an email and get back to us.
    Originally posted by Johnsta0419
    If you're planning on selling it then do an HPI check on it first. As mentioned earlier, sometimes lenders will put a marker against the car even though they shouldn't really as it's an unsecured loan. If there is then you'll need to contact Barclays finance to remove it otherwise you may have issues selling the car if people think there's a loan or finance against it.
    • Ectophile
    • By Ectophile 13th Jan 18, 6:40 PM
    • 2,886 Posts
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    Ectophile
    How can they claim it's an unsecured loan, then put a marker against the car? Either the loan is secured on the car or it isn't.
    If it sticks, force it.
    If it breaks, well it wasn't working right anyway.
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