Please Help

leeds1919

Over three years ago I purchased a car from Carcraft who mislead me whenthey explained the monthly payments of the car during what they classed asthere Budget Buster Scheme. They stated that I could purchase any car on theirforecourt for £99.00 a month and as long as I returned the car back to thembefore the 12 months I wouldn't be tied in to the Fixed Loan Agreement.

However I later found out that this was a false promise and I was tied intoa Fixed Loan Agreement where I am expected to monthly instalments of£680.00month for the next five years.

Since finding out this I have tried various ways to get advice from speakingto Carcraft, Creation, Citizen’s Advice, Office of Fair Trading and theFinancial Ombudsman. They all have said that because I had signed the contractI am obligated to repay the finance, even though there are numerousdiscrepancies in the contract.

Further to this I got a made redundant and I spoke to Creation explainingthat I was having major financial problems and couldn't afford the monthly(£680.00). I only receive Job Seekers Allowance which totals £270.00 a monthand after paying for the insurance for the vehicle, mobile phone bill, roadtax, rent and travel expenses I am left with £1 - which Creation have acceptedfor a short period.

I have been unemployed for 18months and I can't seem to find employment andthe debt isn't going to go away.

I need further advice on anything else could do to challenge the agreementOR if I could scrape enough money together which won't be anywhere near the£36,000 they are wanting - I may be able to get somewhere around £4,000 -£6,000. Do you think that Creation would accept this as a final settlement asmy only other course of action would be to declare bankruptcy.

Please advise.

Donki

From what you are saying this sounds very strange, they said you were to pay £99 a month for a year, then return it, so you were actually leasing the car? What did the paperwork you signed say you would be paying? You say there are other descprepinces in the contract, what are they? We need the whole story if you are to recieve acurate advice.

Tixy

Its very difficult for anyone to advise without knowing what agreement you signed when you purchased the car.

You say they are accepting £1 a month at the moment? Who currently has the car? you or did you hand it back to them/they reposses it?

If you are only on jobseekers then you cannot afford to run the car - even if you still have it in your possession I would suggest you look into declaring it SORN to save the running costs.

zxspeccy

This seems very strange and comes under the “too good to be true” category. Looking at the payments that you should actually be paying I am guessing it was a new (or nearly new) car. No business would let you drive away a car like this for £99.00 a month and then allow you to just hand it back after 12 months. The money lost on depreciation would far outweigh the £1200 you would have paid them.
As others have said have a look at the contract, although you believe you have been mislead, unless you have proof of this then the only think that would stand up legally is the contract. You mention there are discrepancies in the contract, what are these discrepancies? If this contract is water tight then unfortunately you don’t have a leg to stand on. It is still worth talking to the finance company to see if they would take the car back and settle for a lump sum repayment to clear the borrowing. If you have been unemployed for 18 months and are on JSA then a car is a liability (as it is depreciating all the time) and need to be gotten rid of asap. If you do go down the bankruptcy route then it is unlikely you will be able to keep the car anyway.

somethingcorporate

It all comes down to the paperwork that you put your signature on.

Obviously you read this before signing up to it? right?

Apples2

leeds1919 wrote: »

Over three years ago I purchased a car from Carcraft who mislead me whenthey explained the monthly payments of the car during what they classed asthere Budget Buster Scheme. They stated that I could purchase any car on theirforecourt for £99.00 a month and as long as I returned the car back to thembefore the 12 months I wouldn't be tied in to the Fixed Loan Agreement.

I'm completely baffled by that comment that you can have a car for 12 months at only £99 per month and hand it back.
You are tied to a Loan Agreement to second you sign the contract.

£36,000 for a car shocked me too but then from Carcraft, it was probably a 3 year old Astra 1.6.

Even for Carcraft, I simply cannot believe this wasn't outlined on the agreement.

If you can scrape together £4-6k, surely you have enough to tide you over whilst you find another job. Have you widened your search for employment or targeting a specific skillset?

.

leeds1919

Thanks for everyone’s replies -

Firstly I was never actually permitted anytime to look at the contract andit wasn't actually given to me until it had come through post. It does have mysignature on it and I remember signing a few documents at the showroom.

I will summarise the discrepancies in the contract(s): -

I received two contracts that look similar one from Car Craft and the otherfrom Creation, both had my signature on it. The first discrepancy ishighlighted by the difference of the monthly fees one saying £684.56 and the otherstates £611.81; second discrepancy is in section that is for PPI and 'OtherInsurance or Warranties' there are two boxes one for the PPI and the other isfor 'Other Insurance or Warranties - this box is ticked. But it isn't on theother contract.

I am happy to forward my documentation including witness statement to the Citizen’sAdvice Bureau for a court case they pursued and one - to anyone that could giveme any further advice. Please IM me

Tixy

If they have your signature on then you obviously had them in front of you and signed them.

Its not a case of anyone permitting you time to look at them - the sale goes at your pace - and you should have read through every sheet and made sure you understood it before you signed it. The onus is on you to read what you sign.

Is the creation document the one that says repayments of £684 and that has the other insurance box ticked?

And is £684 what you were paying until you were unable to?

You've already been through every avenue with this - by going to the OFT and FOS. Like you have been told by them - you signed the document to indicate that you had read and accepted the terms.

You have nowhere left to go with this line of enquiry.

What you need to do now is decide on a way forward and discuss with creation how you can manage the debt given that you are on benefits.

When you lost your job did you make a PPI claim (if the PPI box was ticked - which isn't clear from your post)? and did that pay the repayments for a year?
Do you still have the car in your possesion?

StuTheDon

What kind of car is it? What was the sale price?

As Tixy says, you need to read everything before you sign it. Saying you did not have time or were not permitted to look over the contract will only make any claim you have weaker.

Silk

There was a thread about this here ...
https://forums.moneysavingexpert.com/discussion/3432575

It seems the deal was £99 a month for 12 months then take it back and change for another @ £99 per month and so on

It would seem that the deal was through Creation but was then pulled ...theres more details on the Consumer action group
http://www.consumeractiongroup.co.uk/forum/showthread.php?308152-Carcraft-issues-Brian9193-Big-Malc

KingElvis

wow 36k for a banger.....I actually feel sorry for you.