Loan / Finance Problem

chocoblock · 28 October 2011 at 7:57PM

Just over two years ago my daughter and son in law bought a static caravan on a caravan site. They took out what they thought was a loan organised by the caravan site. My husband was asked to sign as guarantor for the caravan which cost appoximately £20,000. Early this year they decided they wanted to sell the caravan. Before doing so they checked with the bank that they could do this. The bank agreed it was a loan and the caravan was theirs to do with as they wished. After advertising the caravan on several sites they eventually, after 8 months, found a buyer. They phoned the caravan site to check all bills were paid up and everything was in order only to be told that there was finance outstanding on the caravan (£15,500).
After phoning the bank they were told that this was correct. It was not a loan but a finance agreement and the settlement figure had to be paid before the caravan could be sold.
However, the bank has admitted that incorrect information was in fact given to my daughter previously (over the phone) and that this was verified when the bank checked their telephone monitoring records.They said they would send my daughter a complaints form.

Can the bank get away with just an apology or could they be made to stick to the original information they gave? If the bank can make a mistake like this then it is surely understandable that customers can misunderstand or be misled in situations like this.

Why should it matter to the caravan site if the caravan is sold, as the payments will continue to be made in any case?
Obviously, it has left my daughter in an embarrasssing situation with the buyer. Also if the caravan is not sold by the end of the year there will be another year's site fees to pay (£2600) and they will still not be allowed to sell the caravan.

We can't see a way out of it.
Any comments or advice will be very gratefully received.