Mis-Sold Loan? Please help

Andystriker

s1lverman wrote: »

To make a sad tale even worse - ths son crashed the car shortly after he bought it and sold it for £700. He kept the money when he left home saying "It was my car".

How can you sell a £11,000 car for £700 shortly after he bought it.

If he crashed it then the Insurance would have/should have paid more than £700 on a £11,000 value car.

Sorry, but your story does not make sense.

McKneff

Maybe he crashed the car but had no insurance, seems the more likely story.

She could sue the son for the money, even though she was guarantor it doesnt waiver his responsibility.

oscar52

Andystriker wrote: »

How can you sell a £11,000 car for £700 shortly after he bought it.

Scrap / parts value

If he crashed it then the Insurance would have/should have paid more than £700 on a £11,000 value car.

Sorry, but your story does not make sense.

If its Third Party, then there is no payout - just tough luck.

s1lverman

Thanks all and sorry to have confused some of you.

But it was a tangled tale

The loan was £11000 but a chunk of it was to pay his insurances and he also lost a lot on his first car when he traded in.
The car was badly damaged and his excess was huge so he couldn't afford to get it fixed.
He accepted £700 from a dealer before "leaving town".

chesky369

Has she worked out yet exactly what she will end up paying back?

s1lverman

Thanks Chesky369
She'll pay back about £14,000 over the 5 years - about £3,000 interest

ILW

What was she led to belive she was signing?

s1lverman

Hi ILW

Naive as it sounds, she thought she was merely adding "something" to help her son as she's been with RBS for many years.

I know, I know - banks don't usually ask for your signature unless they want something.

She's paid a high price for being so naive though.

Tixy

Does she have a default on her credit files for this loan (from when son first stopped paying and before she started)?

What is her financial position in general? If there is no default and her credit rating is good possibly she could look around to see if she could find a cheaper APR? 10% isn't that high though in the current market.

If she does already have a default on file for it and is struggling them it may well be worth trying to arrange a repayment plan and asking them to consider freezing interest as it wouldn't make her file look any worse.

s1lverman

Thanks Tixy

No, she hasn't had a default as she's paid back the missed payments.

We're shopping around for a better loan deal now - anyone seen a good deal ?