Cherwell finance brokers

M635

hi,

i'm after opinions on what to do, i warn you now, its a bit confusing !!

i took a £7k loan out with cherwell (actual lender was creation finance) in june.

i originally applied for the finance as HP on a car, but the advisor said i could take it as cash so i could purchase a car elsewhere or privately.

cherwell said there were fee's of £448 that they could add to the loan making it a total of £7448, of which i was transferred £7k to my account and told the £448 covered the admin fees of £149 on the first payment and a settlement fee of £299.

when i took the loan the paperwork stated it was hp on a car but the cherwell advisor told me to ignore this as i was taking it as a personal loan now.

anyway, since june i've made two payments to creation, however for the first payment i had to pay an additional £149, even though i was told this was included in the £448 added to the total loan value, i called creation today as since june i've managed to get a new loan on a better APR and asked for a settlement and they told me i had to pay the final settlement fee of £299, again cherwell told me this was included in the £448 they added to the cash loan (remember i was given only £7k of the £7448 signed for on the loan)

i have since spoken to the brokers cherwell and the advisor that sold the loan to me has left, and they do not know why or where this £448 has gone, as it was a cash loan i should of recieved the full amount and not just the £7k, and they do not know why the advisor got me to add the fee costs to the loan as they are payable direct to creation.

cherwell have agreed to transfer the £448 to me, as i have had to pay this directly to creation. (149 with my first direct debit in july and now the 299 to settle)

to add to this, creation have said the loan that cherwell gave me was actually HP and the loan agreement shows as being secured against a car i never purchased (which means there is someone out there driving this car with finance attached to it in my name)

how do i stand on this, before cherwell send me the £448, should i demand that i just send them back the £7k and they cancel the loan at thier cost, or go to the fiancial ombudsman and continue paying the loan until its sorted out ?

sorry if this is confusing, but to recap :

total loan amount £7448

total cash recieved from cherwell to my account £7K

cash kept at cherwell for fees £448

first payment to creation £332 (normal payment 173, so i got charged an extra 149 even though cherwell had kept the 448 from my loan to cover fees)

settlement quoted as 7739 by creation, as they have added 299 for settlement admin fee (again, cherwell were apparently going to pay this with the 448 added to the loan that i didn't get)

cherwell are going to send me the 448 next week and cannot explain why they kept it.

creation have also said that because this was set up as hp and not a personal loan, the fees are much higher so really if cherwell had set it up correctly i wouldn't have to pay the 149/299 fees

should i refuse the 448 they have offered to send me, and say i want to return the 7k and they sort out the mess they made ?

as i'm still having to pay total fees of 448, but if it was a personal loan(not hp), i wouldn't of had to pay.

its a total mess.

any ideas.......