We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Advice on CarCraft loan in dispute
Ok, a little bit of advice needed please.
Firstly we made a huge mistake ( no criticism needed, we've covered all that ourselves!) by buying a car from Carcraft / CarShaft. Hubbys car but I was with him.
Hubby is severely dyslexic and has Irlens (diagnosed since the purchase) and I have health problems which mean I have to take huge amounts of pain meds that leave me fuzzy-headed and the pain means I have to walk around.
Hubby and I were given the usual runaround that I have since found is normal for CarShaft. Long waiting times (about 6 hours), no drinks, baffling numbers and lots of promises and assurances. They quickly found I was the gobby one asking questions and waited until I had to go walkabout to pounce on hubby, and shove forms in his face to sign. They quickly rushed everything through at the last minute as they were closing.
I asked several times, if we paid off the loan would there be an early repayment fee and were told each time that it would be one months interest but no more. I also asked if the interest was front loaded or calculated on a daily basis, we were told it was calculated on a monthly basis and not front loaded. The intention was to swap to a cheaper loan as soon as poss, as we knew this was a bad deal but, as it does, life got in the way and we were too slack to get around to it.
Now 18months later we need a different car, as this one is gobbling fuel and we find we have a penalty of about £1700 if we pay off the loan early - although that is waived for car dealers if we get further finance through them! The loan was also front loaded with interest, not calculated on a monthly basis as stated.
We have complained to CarShaft who have just written to say they reject our claim, on the basis that the staff member who did the finance on the day has said he would not tell us about the interest or fees as he would not have those figures. Although he said he was independant from Carcraft and even boasted that he wasn't part of them as he didn't have a CarShaft tie! The case is being also investigated by the FSA, and we are waiting to hear.
This is the situation now. We have a loan, and we have bought a new car, and we have enough to pay off some expensive debt and the CarShaft loan - but is that what we should do?
Do we pay off the loan while it is in dispute? Do we send a cheque saying paid under protest and hope we get the £1360 back, plus a payment for the interest that has been calculated? Or do we just pay the remaining car loan, and not the fee, until the outcome is decided. I asked the FSA and they say its up to us what we do and they can't advise on that.
Sorry this is so long winded, but thank you for taking time to read it all. Any comments would be welcomed. Thank you MSE'ers:)
Firstly we made a huge mistake ( no criticism needed, we've covered all that ourselves!) by buying a car from Carcraft / CarShaft. Hubbys car but I was with him.
Hubby is severely dyslexic and has Irlens (diagnosed since the purchase) and I have health problems which mean I have to take huge amounts of pain meds that leave me fuzzy-headed and the pain means I have to walk around.
Hubby and I were given the usual runaround that I have since found is normal for CarShaft. Long waiting times (about 6 hours), no drinks, baffling numbers and lots of promises and assurances. They quickly found I was the gobby one asking questions and waited until I had to go walkabout to pounce on hubby, and shove forms in his face to sign. They quickly rushed everything through at the last minute as they were closing.
I asked several times, if we paid off the loan would there be an early repayment fee and were told each time that it would be one months interest but no more. I also asked if the interest was front loaded or calculated on a daily basis, we were told it was calculated on a monthly basis and not front loaded. The intention was to swap to a cheaper loan as soon as poss, as we knew this was a bad deal but, as it does, life got in the way and we were too slack to get around to it.
Now 18months later we need a different car, as this one is gobbling fuel and we find we have a penalty of about £1700 if we pay off the loan early - although that is waived for car dealers if we get further finance through them! The loan was also front loaded with interest, not calculated on a monthly basis as stated.
We have complained to CarShaft who have just written to say they reject our claim, on the basis that the staff member who did the finance on the day has said he would not tell us about the interest or fees as he would not have those figures. Although he said he was independant from Carcraft and even boasted that he wasn't part of them as he didn't have a CarShaft tie! The case is being also investigated by the FSA, and we are waiting to hear.
This is the situation now. We have a loan, and we have bought a new car, and we have enough to pay off some expensive debt and the CarShaft loan - but is that what we should do?
Do we pay off the loan while it is in dispute? Do we send a cheque saying paid under protest and hope we get the £1360 back, plus a payment for the interest that has been calculated? Or do we just pay the remaining car loan, and not the fee, until the outcome is decided. I asked the FSA and they say its up to us what we do and they can't advise on that.
Sorry this is so long winded, but thank you for taking time to read it all. Any comments would be welcomed. Thank you MSE'ers:)
0
Comments
-
Have you been gven a settlement figure and does it include the interest for the entire loan period?0
-
Have you been gven a settlement figure and does it include the interest for the entire loan period?
We have been given a settlement figure, this is the amount of the loan left ( the interest was front loaded so its part of the loan) plus a rebate figure which is the fee of £1360 for ending the loan early.0 -
We have been given a settlement figure, this is the amount of the loan left ( the interest was front loaded so its part of the loan) plus a rebate figure which is the fee of £1360 for ending the loan early.
The rebate will actualy be the amount of interest you are saving by paying the loan off early. (so not a 'fee' as you put it)
the settlement letter should tell you:
1) The total outstanding balance of the loan
2) the rebate amount
3) The settlement figure
The settlement figure will be (1) minus (2).
To advise more it would be good to know those amounts from your settlement letter together with the original loan amount (and interest rate), term of loan and what your payments are.We've spent decades teaching people about their rights, but nothing about their responsibilities.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 348.6K Banking & Borrowing
- 252.2K Reduce Debt & Boost Income
- 452.5K Spending & Discounts
- 241.3K Work, Benefits & Business
- 617.7K Mortgages, Homes & Bills
- 175.8K Life & Family
- 254.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards