Mis-sold unsecured personal loan

megsamzai

My wife and I:mad: took out a car loan 4 years ago for a new car, we spent a couple of hours with the dealer discussing the balloon payment at the end of the loan which was £15,000. It has now become apparent that this was an unsecured personal loan that was sold to us and not a car loan despite the fact that the document was laid out like a car loan, including the registration number etc of the vehicle.

It only became apparent that it was an unsecured personal loan when we tried to trade the car, and were told that the value was £6k under the balloon and that there was in fact no finance on the car.

The salesman explained at some length that at the 4 year point we could pay the balloon and keep the car or return the car with no further payments to be made as the balloon was the guaranteed future value.

We were mis-sold and have explained this to the loan company who is now Bank of Scotland, although it was not them when the loan was taken out.
They say that it is the responsibility of the salesman, is this correct.

We cannot afford to pay the £15k that they are going to be demanding in 2 month's.

Beast

Did you not read the documentation you signed?

Simon11

megsamzai wrote: »

not a car loan despite the fact that the document was laid out like a car loan, including the registration number etc of the vehicle.

If it was a pink flowery document, would this have suddenly told you that this wasn't a car Loan? A document is a document, it doesn’t matter the format, it only matters about the letters!

Always read the Small Print, -you've got no case against who sold it to you. You signed the document and accepted the T+C

immoral_angeluk

What on earth car did you buy which was apparently 'guaranteed' to be worth 15k after 4 years??

magpiecottage

Without knowing the full details, it is difficult to give a definitive answer.

The Consumer Credit Act 2006, which gives a consumer the right to take the holder of a consumer credit licence to the FOS will not apply because that right has only existed since 6 April 2007.

It is possible that you may have a case against the lender since the finance was arranged via the dealer so that the Consumer Credit Act 1974 makes the jointly liable. You would be able to take Bank of Scotland to FOS because it voluntarily submitted to FOS jurisdiction for this.

That does not mean you will necessarily be successful - it would depend on the merits of your case.

CHR15

I don't get this.

If it was a personal unsecured loan, Why is there a balloon payment??
You said there is no finance on the car, so why would you have to give anyone anything??

It seems to me that you agreed to pay a figure each month for the car, and pay £15,000 as a lump sum at the end.

Now you find out there is no finance on the car, it was a simple unsecured loan, so you are making the same monthly payments, but without any balloon payment at the end.

Or have I got all this wrong??

I would also like to know what kind of car it was to be worth that after 4yrs.