Welcome Finance - Please help

malutki220

Hi!

In 2006 I took HP for a car with Approved Car Finance (they work for WF). On the day the rep I was talking to said clearly (I have witness) that if I want I will be able to return a car after 2year period (original agreement was 4years) and I will not have to pay any money after that. For 2 years I paid very high instalments but I was happy about it at the time. In around february 2008 I've sent termination request to WF as well as PPI repayment request to ACF. If I remember correctly I've received negative answer from ACF. I wasn't worried about it to much at the time as I wanted to end a agreement anyway and I was absolutely sure that I won't have to pay any more. It took several phone conversations and number of letters send out to finally made WF come in and collect a car in SEPTEMBER!. I was a convinced that this is the end. To my surprise WF started to chase me for over £3000 of PPI (which as they said have to be paid for whole 4 years despite what rep said on the day of which agreement was sign). In this sum they included charges of around £1000 for missing car tax, despite me trying to make them to collect the car for over a 6 months. When they informed me about charges I've contacted R James Hutcheon Solicitors and they was dealing wit he case from January 2009. Early on this year they asked Financial Ombudsman to have look but unfortunately I've been just informed that because of my PPI repayment request in 2008 they will not be able to investigate. My solicitors have told me that I can go to court but because low amount they will not be able to help me.

I'm totally terrified. As you probably already know I'm foreign and I don't know what to do next. If I have £3000 I would pay them just to forget about it not to mention spoiled credit rating. Unfortunately I dont have that kind of money. I feel that I was cheated big time by WF ACF and even my solicitors dont seem to great in helping me.

Please can You help me?

cyberbob

OK have I got this right you took out finance on a car for 4 years. The salesman told you you could return the car after 2, but you didn't get it in writing.

You wrote to them in 2008 to cancel. They didn't collect the car until Sep 2009?

Was the cancellation sfter 2 years in the agreement? If not I doubt you would have much of a case. When you wrote to cancel did you get a letter stating the contract had been cancelled? When they picked the car up what paperwork did you get and did you get confirmation of the reasons the car was being taken?

I find it quite strange that and agreement would allow you to cancel after 2 years especially form lenders like Welcoms CF who target those with poor credit.

Without the cancellation in writing I cannot see you would have much of a case. You need proper legal advice. Speak to your Solicitors or the CAB and see what they say

jimbms

cyberbo: From what I can see it is not the returning of the car that is of issue as that seems to be ok, it is the PPI that is the issue here.

cyberbob

jimbms wrote: »

cyberbo: From what I can see it is not the returning of the car that is of issue as that seems to be ok, it is the PPI that is the issue here.

What i'm questioning is the reasons the finance think the car is being returned. If it being returned due to end of a contract there should be some paperwork saying so. So that could be used as part of the defence.

What I'm wondering is that if the finance think it was a repossession due to non payment? (which may explain why it took them so long to collect the car) Which might explain why they think finance is due. The OP needs paperwork of somesort to prove that he had a right to end the finance after 2 years. Whats worrying is if the solicitors already don't think there is a case

malutki220

cyberbob wrote: »

What i'm questioning is the reasons the finance think the car is being returned. If it being returned due to end of a contract there should be some paperwork saying so. So that could be used as part of the defence.

What I'm wondering is that if the finance think it was a repossession due to non payment? (which may explain why it took them so long to collect the car) Which might explain why they think finance is due. The OP needs paperwork of somesort to prove that he had a right to end the finance after 2 years. Whats worrying is if the solicitors already don't think there is a case

Hi

This was Hire Purchase Agreement, and it is possible to return a goods after period of time, in this case 2 years. I do have some paperworks for that. It wasn't repossession.

malutki220

At the time (when I send cancellation request) payments was up to date. I have no idea why they took so long to collect the car but I can only assume they knew time is playing to my disadvantage. At this moment whole amount due is PPI plus some unjustified collection charges. As far as I understand my solicitor won't put the case forward as final value is less than £5000. From yesterday I have contacted number of other solicitors and I have some responses. The only problem is that I don't want to spend another 18 months waiting only to be told they will not help me. Don't know which solicitor to chose. Or perhaps I should take different approach? I'm totally confused.

toffe

To clear this up, what the sales rep told you is roughly correct. You took out the loan for 4 years, so it's reasonable to expect that after 2 years (half of the loan term) you would have repaid half of the total amount payable for the whole 4 year term of the loan, though you always need to check this before doing a voluntary termination, which is what this is.

Under the terms of the consumer credit act which govern these type of hp agreements you are entitled to return the vehicle and be released from any further obligations under your loan agreement (voluntary termination) this is not a repossession and it is your right under the terms of the consumer credit act. It should not show up on your credit file as a default or any other negative mark.

It seems though that this part went off, reasonably, ok.

So it's the £3,000 ppi which is the problem. So why did you not pursue the reclaim of ppi? did they tell you it was not missold?

if they did i think they may be wrong, you see, they sold you 4 years ppi up front (they gave you a loan for the full 4 years of premiums by the sound of it, it's common with companies like these) but that alone can be classed as misselling because you do not need 4 years ppi and the way it has been sold to you did not allow for a change in circumstances.

i believe that if you were sold 4 years ppi upfront like that it is classed as missesling. I'd pop over the bank charge reclaiming board, there is a sub board on ppi and you should get some answers over there, or try the debt free wannabe board there are a few guys on there who are well up on this kind of thing but ppi misselling is not my strongest point.

malutki220

toffe wrote: »

To clear this up, what the sales rep told you is roughly correct. You took out the loan for 4 years, so it's reasonable to expect that after 2 years (half of the loan term) you would have repaid half of the total amount payable for the whole 4 year term of the loan, though you always need to check this before doing a voluntary termination, which is what this is.

Under the terms of the consumer credit act which govern these type of hp agreements you are entitled to return the vehicle and be released from any further obligations under your loan agreement (voluntary termination) this is not a repossession and it is your right under the terms of the consumer credit act. It should not show up on your credit file as a default or any other negative mark.

It seems though that this part went off, reasonably, ok.

So it's the £3,000 ppi which is the problem. So why did you not pursue the reclaim of ppi? did they tell you it was not missold?

if they did i think they may be wrong, you see, they sold you 4 years ppi up front (they gave you a loan for the full 4 years of premiums by the sound of it, it's common with companies like these) but that alone can be classed as misselling because you do not need 4 years ppi and the way it has been sold to you did not allow for a change in circumstances.

i believe that if you were sold 4 years ppi upfront like that it is classed as missesling.

Looks like that's exactly what it is. Unfortunately, as I was told, because of my previous PPI repayment request in 2008, I have only 6 months to refer to Financial Ombudsman. Back in 2008 I didn't pursue getting PPI back as I was absolutely sure that after termination I will not have to pay anything.

toffe

As i say ppi is not something i'm that great on but i don't think not pursuing via the ombudsman in 2008 means you can't pursue now.

what reason did you give for trying to claim the ppi was missold in 2008? if it wasn't that you were sold 4 years in one go that you didn't need then this may well be a seperate, new, complaint which would not be limited by not pursuing the original complaint.

Best to ask this question the ppi forum over on the bank charge reclaiming board i reckon.