Car Loan with GMAC

jhodgso4

Hi
I have recently contacted GMAC to pay off my loan and they have sent me a final settlement figure. The settlement figure has nearly £600 worth of fees added to the account from letters sent out and from some missed payments. The loan is due to end next may in its 5th year and the loan was for around 10000. Can they charge this amount of fees and if not how do I go about getting them reduced or taken off my account so I can just pay it off.
Thanks for any help
Joe

jhodgso4

Does anyone know if this is possible?
Thanks
Joe

Tinka21

I have had a lot of fees because of late payments with Gmac as well probably about £200 worth!

petermb_2

The point is that Gmac will feel they can justify these fees and will claim they are in their terms of conditions within the legal document you signed in the form of an agreement. They will claim that you did not obide by the agreement by missing contractual payments and therefore their fees are justified.

On the other hand, I would imagine that the loan will have been arranged by the forcourt that you bought the car from. I would imagine that in doing so the lender will have broken the law in a couple of areas which could call the loan into question.
In such an instance I would imagine that should you be in a position to challenge this particular loan, the compensation would far outweight the fees that they have charged you.

There are some on here who would say that you have no right to challenge as you borrowed the money so you should pay it back.

My argument would be contrary to this. If the lender is claiming that they have the legal right to charge excessive fees because you have not complied, you have the right to challenge them as they have not complied either.

~Brock~

petermb wrote: »

On the other hand, I would imagine that the loan will have been arranged by the forcourt that you bought the car from. I would imagine that in doing so the lender will have broken the law in a couple of areas which could call the loan into question.

Assuming of course that the dealer holds a valid consumer credit license, would you care to expand on that assumption Peter?

petermb_2

The dealer would have to hold a valid Consumer Consumer Credit licence to even introduce a client to a lender. A Consumer Credit Licence permits an individual or a company to act as a credit broker.
As a credit broker the dealer and lender will have a number of legal responsibilities to adhere to, which the vast majority do not. These breaches of law will allow the borrower to challenge the loan.

petermb_2

sorry i am repeating myself. must be something I ate

~Brock~

petermb wrote: »

The dealer would have to hold a valid Consumer Consumer Credit licence to even introduce a client to a lender. A Consumer Credit Licence permits an individual or a company to act as a credit broker.
As a credit broker the dealer and lender will have a number of legal responsibilities to adhere to, which the vast majority do not. These breaches of law will allow the borrower to challenge the loan.

Are you hinting at commissions?

petermb_2

Would I do that?

~Brock~

petermb wrote: »

Would I do that?

Of course not !

I would be at a loss to understand how the dealer is acting as the agent for the customer when they are selling them a car and are clearly the agent of the lender (and no fee is paid by the customer which would create an agency relationship), but hey ho.

petermb_2

An interesting debate at the best of times but not one that will be resolved by you or me. Let the legals decide.