Would you loan £10000 to someone unemployed?

cyclonebri1

Advice needed for a relative please.

It's a miss selling of credit issue possibly.

In brief after having 2 other cars on hp from a main agent, and paying off over about 7 years he was made redundant.
He made it clear he was our of work and had an income of only £370 per month from benefits. The payment for the car was £224 per month.

The main dealer didn't want the risk, they had used their own purchase scheme for the previous cars, so they off loaded it to another credit company, FSA regulated and they took it on.

EDited to add;

My original typo gave exactly the opposite meaning to the bold bit, now edited correctly. My signature is pretty accurate I'm afraid.

It was a 5 year period and it has been paid until now. There is 1 year remaining.

Now I'm sure you can see no one can spend that on credit and live for a month on £150, but without going into any great detail he was supported as a carer but unfortunately due to a bereavement, that support is no longer in place.

Now, NO false info was given, it isn't secured against property etc so how could that be correct.

I know tighter checks are in place today, but this was 4 years ago.
Can anyone give any advice regarding action to take.

I did speak to out family advice legal line but they were unsure and suggested calling the financial ombudsman. I'll do that today.

Please skip the comments about whether or not he should have borrowed like that, it won't help, I don't suppose he expected to be out of work for long but he has been.

He has no way to continue the final years payments.

noh

He purchased the car.
He took out the loan.
He pays back what he owes or makes arrangements to do so.
Has he sold the car yet?

Dovah_diva

Are you asking if this was missold? Was it a personal loan or HP secured on the car? Can he voluntarily return the car? Where in your OP does it say about the loan being secured against a property? How much much was the original debt and how is still outstanding?

pvt

cyclonebri1 wrote: »

Now, false info was given, it isn't secured against property etc so how could that be correct.

Sorry if I'm misunderstanding here, but are you saying he provided false information, and you now think there's a case that the loan was miss-sold because the lender didn't check if the applicant was lying?

As for advice on action to take: Sell the car and use the proceeds to pay off the remaining loan.

dealer_wins

Providing false details on a loan application is fraud. It is not up to the lender to check them, it is up to the applicant to provide honest information.

Not only will the loan still have to be repaid, but if you contact the lender and make them aware of this, expect to be charged with fraud on top.

cyclonebri1

pvt wrote: »

Sorry if I'm misunderstanding here, but are you saying he provided false information, and you now think there's a case that the loan was miss-sold because the lender didn't check if the applicant was lying?

As for advice on action to take: Sell the car and use the proceeds to pay off the remaining loan.

Absolutely not, he would not dream of lying.

I'm saying he wasn't asked the relevant info, even after he had offered the information of his redundancy, and I don't think any checks could have been made on his ability to pay.

cyclonebri1

dealer_wins wrote: »

Providing false details on a loan application is fraud. It is not up to the lender to check them, it is up to the applicant to provide honest information.

Not only will the loan still have to be repaid, but if you contact the lender and make them aware of this, expect to be charged with fraud on top.

Just read what I have posted instead of using your own vivid imagination please

Dogger69

How has he managed to pay to date? Is he still not back in work?

I can't see a case for mis-selling, only poor decisions on the part of the buyer. Does he lack mental capacity? I am struggling to understand why someone would put themselves in this position.

cyclonebri1

Dovah_diva wrote: »

Are you asking if this was missold? Was it a personal loan or HP secured on the car? Can he voluntarily return the car? Where in your OP does it say about the loan being secured against a property? How much much was the original debt and how is still outstanding?

Yes I am asking if it was miss sold.

I have the paperwork at hand now and it states;, fixed sum loan agreement, then gives all reg details etc of the car.

So I am not sure what type of credit that makes it, I'm not familiar with this stuff hence the thread.

It is not secured against property or other asset, that was the point I was trying to make.

Total amount payable was £14500, he has paid off 4/5 of that al;most exactly.

Returning the car? Too late, in effect it is almost paid for, and yes I could pay it off, sell the car and take back my costs.


But it is the issue of whether it was actually sold correctly.

somethingcorporate

You said in the OP that false information was provided.

If the person applying agreed to this false information then that is fraud and perhaps pursuing this could very much backfire.

At the end of the day, the fact that they have kept up with repayments perhaps means there was nothing wrong here?! I am not sure what redress you are hoping to achieve. I certainly don't think it was mis-sold.

somethingcorporate

cyclonebri1 wrote: »

Just read what I have posted instead of using your own vivid imagination please

I think you should read what you posted, you said false information was provided.