Loan misselling?

chelleapps

Hi, i'm hoping i've posted this in the right place and someone can help shed some light on whether or not we have any comeback...i'll try and keep it short.

My husband signed up to become an ADI, training with Red Driving School in November 2008.

He went for an interview and used the opportunity to ask everything he wanted to know.

The training and exams cost just short of £3700 all in, which he could get on an interest-free and repayment-free loan for the first 12 months to give him chance to train and start earning so he'd be well positioned to start to pay it back.

All seems fine and legitimate. Husband decides it's for him and signs a training agreement the following day after discussing it with me. He was then asked for his bank details in order to apply for the loan. Then came a sticky part - he was declined. The sales guy asked if anyone would be willing to act as a guarantor. My mother-in-law agreed but then he asked for her bank details as well. When quizzed he replied 'they have to be supplied in case you default on the loan so they seek to get repayment from the guarantor'. OK, also legitimate - it is after all a guarantor loan.

We've since found out, after my husband recently checked his Experian report, the loan ISN'T a guarantor loan at all, it's a loan in my mother-in-law's name. No financial link to my husband at all. She's NOT happy about this as it's not what she was led to believe she was signing.

I'm hoping we have some sort of comeback - is this illegal or is it a case of we fell for it and that's that?

Any help would be greatly appreciated, i'm really worried about this.

dmg24

What does the loan agreement say?

maninthestreet

Did you Mother in Law sign any documents in relation to this loan? If so what, do those documents say?

scullster

I would expect your husband to sign the document as the person applying for the credit agreement, and probably the mother-in-law to sign in the capacity as guarantor.

I would have thought the paperwork to be clear on this distinction, your mother in law hasn't technically applied for the credit. I'd have been surprised if they'd asked for the guarantor's bank details - it seems a little belt and braces to me, I'd expect them to pursue the mother-in-law for the debt only in the event that your husband was to default (and then perhaps on x consecutive occasions).

Did they record both sets of bank details on the credit agreement, or just the mother in law?