Mis-Sold Hire Purchase?

jonesMUFCforever

They get away with it because people like you sign things without reading them or getting them verified by a third party.

a7man

You will have no chance if you make a complaint, you have no proof of mis selling and you have signed a document which has Hire Purchase written at the top, and no doubt throughout the text,

standupguy

Micha26 wrote: »

I am in need of some advice....

Two and a half years ago I bought a car from a local garage. I had arranged my finance via a bank but the salesman convinced me to take out finance with them so I could have the car quicker.

I've now had to return the car to the finance company who auction the car at a tiny amount compared to if I had been able to sell the car privately...

I'm left feeling cross and taken advantage of - do I have any comeback?

I am looking at this from the angle of the return of the car and the fact that you had the car for 30 months?

You may well have been mislead by the Finance company over the return of the car and you need to check this?

It looks like from what they say - that you will be responsible for any outstanding balance after sale - that the car was repossessed?

This is not the same as a voluntary termination.

The chances are that you had paid over one third the HP price and if this was the case, unless you gave them the car voluntary, then they could not repossess without a court order. Did you receive a court order?

Had you returned the car under a voluntary termination then your liability would be to half the hp price and it is likely thay you may already have paid this looking at the time you have had the car?

If they have acted inappropriately by misleading you then this is a serious matter which you could complain about and ultimately take the complaint to the Financial Ombudsman if they did not resolve this satisfactorily.

But, first things first: -

What were the exact circumstances of the car going back?

Was it repossessed or was it a voluntary termination of the agreement on your part?

Did you sign a letter of volunatary termination?

How many months payments were you in arrears at the time?

Did they send you a default notice and if so on what date, when did it expire and when was the car returned?

Have a look at your agreement - what amount is the third HP figure on the agreement and what is the amount of the half HP figure?

Add up your deposit and all the payments you have made - what amount does this come to?

We need to get a clear understanding if you have been mislead about your rights regarding the return of the car?

Enquirer_2

Not sure if I am posting in the right place.......

I bought my car brand new from the main dealer over 2 yrs ago and because of financial difficulty I went to Voluntry Terminate the car and they told me that I had been sold a Personal loan by the finance company and I thought that it was a Hire Purchase Agreement and due to how much my car has depreciated I am at a big loss if I sell it as it wouldnt even cover half the amount still outstanding.

Is there any advice someone could give me on this position?

Thanks.

dmg24

What does your agreement say?

insideinfo

Come on here and ask "what are the pitfalls, the benefits of this agreement"

The site would be so much quieter...

RachieP

I have had the same problem. Yesterday I bought a car - £6k was paying from credit card and the rest £2454 I was paying via finance.
I was mislead and told that it was a loan - never mentioned Black Horse or Hire Purchase or anything of the sort. He got me to sign on an electronic pad to agree to buy the car - which I didn't realise would go on the bit of paper at the bottom of the agreement. Wham... Just signed up for over 30% interest - he told me 7.9% flat rate. He said all companies charge all these fees. He lied about the fees and only when it came out on this agreement with my pre-printed signature. Since walking away with this agreement in my hand £500 already paid as deposit, then have to pay remaining £5,500 tomorrow AND all this other interest and credit.
I realised almost as soon as I got home that I had been done! He said don't worry that's not actually 30% interest.
I looked at figures and even they seem wrong. It states 14.24% interest rate per annum (this is for 2 years), but if I do 14.24% of £2,454 its £349.45 and NOT £380.40 quoted on Agreement.
What can I do? Do I have a leg to stand on!?
I can't believe this. I always read things before signing. He told me it was a loan and not Hire Purchase Agreement. I didn't even know what a Hire purchase agreement was until I just looked on the internet and will I even own the car? Confused as already paid for most of it, so where do I stand?
So upset that these sales people ALL tricked me into this.

Micha26 wrote: »

Ok - the finance is with Black Horse & it definitely says Hire Purchase agreement at the top!

I thought that as long as the car makes what I still owe on the HP, I won't be liable for an more but am not sure if this correct... I'm sure the financecompany have said that if it doesn't make the amount remaining, I will be liable for the balance but this doesn't make complete sense in relation to some of the information given above...!

I'm guessing that I don't have a leg to stand on with regards complaining about mis-selling...?! :mad:

Jamesf81

I beleive you have 7 days or could be 14 to return the car under the sales of goods act.

It should also be stated on the agreement somewhere. You then have the right to claim all your money back you have paid.

Dont hang about act now and go to a different dealer.

RachieP

Hi, I have looked and nothing on Sales of Goods Act. It states at the top Hire-purchase Agreement regulated by the Consumer Credit Act 1974.
I have checked this out and according to some websites if I signed on their premises I do not have cool off period!? This is a joke. I didn't even sign the agreement. THey gave me a little hand held computer thing, then uploaded a computer image of my sig onto the agreement and gave me the agreement after. I had no idea I was signing an agreement!

Tubbss

Hi Rachie,

Unfortunatly you are correct, if you have signed an agrrement on trade you have no cooling off period whatsoever..