Car Finance - Wrong APR

kevess

Hi there,

I took out finance on a car in April 2009. I signed a CCA at the car dealer for finance with Santander. The only paperwork i have ever seen is the paperwork copies i took home with me the day i got the car, all Santander (Credit Agreement, Key Details & Direct Debit Form).

So the payments started to come out of my bank by direct debit to a company called Creation Finance. When i called Santander they had no reference to the finance and after a search using the car reg told me the finance was with Creation. I called up Creation Finance and they confirmed it. I asked them to send out my agreement details etc but never seen anything from them.

I didn't really chase this up as I carried on paying the payments and recieved a yearly statement from them.

The problem now is that I am almost half way through the agreement and was looking to return the car as stated in the agreement I signed (all be it a Santander agreement). Creation have said that I can not do this. I also noticed after studying the inital agreement that the APR should have been 9.9%, but I have been getting charged 19% as per the yearly statement from Creation.

What has happened here? How can creation have taken the loan from santander when I never signed an agreement with them agreeing to them terms?

Any advise would be appreciated.

Thanks in advance,

Kev

Apples2

That nice Car Salesman chap has simply flanneled you rubbing his hands with glee.

He was quoting you the FLAT RATE of interest, not the APR which you thought he was saying.
It is entirely common for them to fool you like this. Search out some Flat Rate posts on here to see just how many people have fallen for the same Car Salesman waffle.

It doesn't really matter who you owe the money to, you have the car and owe the money, the debt is a business asset which can be passed around.

Notwithstanding that, the agreement should be exactly as agreed, it sounds like it is, abeit you have been hoodwinked about the APR.

Go punch the Salesman on the nose.

kevess

Thanks for the reply.

I can see how this can happen with the flat rate/interest. The thing is I wasn't quoted anything. It is down on the original agreement i signed as 9.9% APR. As well as the termination rights being that once half the payments have been made the goods can be returned in suitable condition without any additional charges.

They are now saying that this is not possible. Surely they can't change the terms of the agreement when passing around the loan as an asset?

Apples2

What does the Agreement actually say?

For the handing back at half way, it must be a HP Agreement and NOT a Personal loan.

Does the agreement actually state 9.9APR?

kevess

Yes, the signed copy I have at home says 9.9% APR. This was signed with Santander.

Should I request the CCA from Creation to see what they have?

Clive_Woody

My suspicion would be that Santander turned down your application for finance and nice Mr Car Dealer went to creation instead and never felt the need to let you know that the APR had doubled.

I would certinaly contact Creation and find out what they have for you as it appears the dealer obtained credit from them in your name without your knowledge.

kevess

That's what I thought had happened...

What happen's if thats the case?

chanz4

you take it up with the dealer

kevess

Clive_Woody wrote: »

My suspicion would be that Santander turned down your application for finance and nice Mr Car Dealer went to creation instead and never felt the need to let you know that the APR had doubled.

I would certinaly contact Creation and find out what they have for you as it appears the dealer obtained credit from them in your name without your knowledge.

So what would be the best way to contact Creation. Shall i use a CCA request template?

Common_Sense_2

kevess wrote: »

So what would be the best way to contact Creation. Shall i use a CCA request template?

that's probably the best way - don't forget to send a pound.

Clive_Woody

kevess wrote: »

So what would be the best way to contact Creation. Shall i use a CCA request template?

Yep that's what I would go with.

It might be worth sending a letter to the dealership too asking them what they did.

Send both letters recorded delivery so you can track them.