Credit rating after handing car back

nmealey

We had a corsa, which we bought from new in 2002. We were gong to get finance over 3 years, but the salesman told us to take it over 5 years interest free, and after 2.5 years we would have paid more than 1/2 the ammount payable, so we could just hand the car back, and not pay anything more, then look for a new car.

We took his advice, as it made sanse at the time. The corsa was take out in my wifes name. 2.5 years later we handed the car back to the finance company, having informed them that we were excersising our rights under the terms of the contract.

1.5 years later, my wife who is on over 50k per year can't get a mobile telephone on O2, as she fails the credit check. She has the mortgage in our joint names, and a credit card with a £0 balance on it. Historically I have usually taken the credit agreements out.

Has she been black listed as a result of handing the car back. Does it affect your credit rating ? and if so, what can be done with regards the salesman who sold us the car.

plane_boy2000

I am not sure you have actualy been blacklisted, but there will be a note on her credit file to state that she has handed back a car. This may put other lenders off as it coul dleave you to believ that she will breach any further contracts.

I suggest that you try to get hold of her credit file to see what is actualy in there - companies can make mistakes when declining credit - my other half was refused a mobile a few months back as her postcode was not recognised in the moblile companies system - the house is now 1 year old.

xycom1

IMHO a decline from O2 is more of a lucky escape than anything else!

A Voluntary Termination of a car finance agreement shouldn't affect you that badly - certainly not as much as a default on a credit agreement would. I agree with the above advice about getting a copy of your credit record though.