Ford Finance - Have we been treated unfairly?

marmitedog

mc33033 wrote: »

This is wrong, it is written into the agreement if it is indeed HP, it is statute legislation, you are not breaking any part of your agreement.

The legislation allows you to break your agreement. The finance company is also allowed to record the fact that you terminated the agreement early and didn't complete the payments you signed for.

Whether this affects any future credit sanctioning is up for interpretation. Finance companies won't want to be taking a bath twice though.

mc33033

CHR15 wrote: »

It's a question many have asked, but nobody has/could answer.

Probably because the people who decide on the internal credit scoring for credit companies would be the ones who know. A lot of people like to spread FUD about this. Of course finance companies don't like having to offer this, so it is in their interest to be wary about saying it doesn't affect your credit history.

I have dealt with people who handed their car back early time after time/back to back with HP, absolutely no problems at all for them. If the credit company want to lend, they will - a VT is not going to bother them.

If the finance company don't want VTs, they have the commonly exercised option of offering forms of finance other than HP! They will have this figured the costs of VTs into their business model.

Consumers should not worry if their credit history as a whole is fine then a VT is not going to have any real affect on them getting credit. Credit is never a right, but if they can show they kept their payments up to date and the rest of the figures/file details stack up then there is no reason why they wouldn't get mainstream credit.

mc33033

marmitedog wrote: »

The legislation allows you to break your agreement. The finance company is also allowed to record the fact that you terminated the agreement early and didn't complete the payments you signed for.

Whether this affects any future credit sanctioning is up for interpretation. Finance companies won't want to be taking a bath twice though.

OK, you are exercising part of your contract. You are in no way failing to adhere to the contract, you are seeking performance of one of the options within the agreement to conclude it. This option was agreed by both parties. It is not a "second class" option compared to paying the remainder of the term and keeping the car.

The finance company will not report breach of contract or default on the consumers report, it will show that the contract concluded satisfactory.

If the finance company does not want a consumer to have the option to hand the car back and walk away then they do not have to offer HP! That is why fixed sum loans are very common as are conditional sale agreements.

CHR15

mc33033 wrote: »

Probably because the people who decide on the internal credit scoring for credit companies would be the ones who know.

Agreed, that's why I pointed the question at ilovebanksMCMLXXXI who used to deal with them.

ilovebanksMCMLXXXI wrote: »

I used to do these kind of deals (i.e. upgrades and downgrades with outstanding HP) on a regular basis.

mc33033 wrote: »

I have dealt with people who handed their car back early time after time/back to back with HP, absolutely no problems at all for them.

So it made no difference at the place you worked??


I've never had a car on HP and frankly wouldn't go near it, just an interested bystander.