Dodgy Car deal

mrseyes

I am very disappointed in a way how the sale of the car was handled. And in particularly with finance deal that was done with my son.

Firstly when looking at the paperwork, there were numerous figures used which at best it was hard to understand by an experienced person what makes them think that my son understood it.

Secondly, although my son is 22 and adult, the salesman blurred him with the entire interest rate issue. He quoted my son 10% interest but not told him whether this was APR or flat rate. In fact in his paper work APR is 20% and flat rate is 10%. I am sure as to what extent he went to explain the difference between these rates.

Additionally none of the following were explained.

The entire admin fee
Penalty if loan has paid early
Extra £2978.00 credit charge
An option to purchase payment protection insurance as this was added without knowledge
Select total warranty Small for 12 moths of £300 meant
Vehicle which is £5,260 could cost him approximately £9746.40 in total?

I think it was important that whilst intension to sell car was good, he actually plunged my son into life time debts.

blue_haddock

Whilst the salesman may have talked him into taking all these options no one actually forced your son into signing the various agreements. If he is not able to make his own mind up on things then he should of taken someone with him.

rdwarr

blue_haddock wrote:

Whilst the salesman may have talked him into taking all these options no one actually forced your son into signing the various agreements. If he is not able to make his own mind up on things then he should of taken someone with him.

Perhaps he believed the salesman when he said it was a good deal. Just because somebody is financially naive it doesn't mean it's OK to rip them off.

mrseyes

OK: My son is 22yr, no one has forced him in signing forms, but no one has right to rip him off. My son earns less £12000 yr, how on earth any finanace company even consider giving him finanace deal worth not only £1000, £2000 but £9746.40 in total?

The deal was so dodgy that they did not have a cooling off period, and the finance company (on:line finanace) which i have never heard off.

MrSmartprice

All such credit agreements are regulated. Get down to Trading Standards or a Money Advice Centre pronto and let them look at the forms to see that they comply. If not, they may be unenforceable and you could have a way out.

mrseyes

Trading Standards said there is nothing they can do as the agreement form is signed.

MrSmartprice

mrseyes wrote:

Trading Standards said there is nothing they can do as the agreement form is signed.

That's fair enough if they have checked the agreement. If it complies with the Consumer Credit Act it will be legally binding.

rdwarr

Even the on:line finance website looks as though some of the products are a bit dodgy!

Although On:line are known to be a rate for risk Company, Dealers were reporting that the gap that existed between Premier & Prime or Prime & Classic was too great for some Customers. Having the availability of an improved risk model, through Equifax, has allowed On:line to underwrite the "rate for the risk" presented in a far more accurate way. This means that On:line can accept more Dealer proposals on terms which make it easier for the Dealer to sell more cars: more sales for the Dealer is On:line's unique selling point.

:eek:

david29dpo

sue for miss selling!

mrseyes

sue for miss selling? how do i go about it. My son cannot afford legal fees.

Wig

I have no idea how to help, you could try phoning in on a BBC show, or write a letter to "working lunch" BBC2.

Also you could phone up the financial ombudsman they must have a helpline and they might be able to tell you what the rules of engagement are. Then you can ask if this sort of credit deal is covered by them, and ask them to adjudicate on the case.