personal loan for car finance, using business bank account

matty1980

Hi,

Sometime in 2007 I got a car off WELCOME FINANCE, ( I know now BIG mistake ) when I went down to choose a car they asked me to bring personal bank statements and some other documents for identification, I told them over the phone that I didn't have a personal bank account but have a joint business bank account with my dad, so they said to bring that instead.

So, I took the bank statements and some other documents along ( driving licence, passport, recent utility bill ), I chose the car I wanted and they filled out the paperwork and applied for the finance, ( I already had bad credit and a CCJ beforehand so was ready to be knocked back ), I was shocked when they said I had been approved, around a month after I got the car work started to slow down so I couldn't make the 1st payment, or the 2nd,3rd or 4th. it was around 6 months after initially getting the car that they got in touch about the debt owed on the car. I went to see my local office and told them I wasn't working so they lowered the payments but spread it over a longer term. The business stopped trading in August 2008, they told me the car was on HP but I have only recently found out from the debt recovery company they have sold the debt to, that infact they gave me a personal loan for the car.

I would like to know how they could give me a personal loan using a business bank account statement, and if I have been mis-sold a loan, and were I stand with this situation?

ch3101

First thing to do is get your credit agreement and see what that says.

I work for a loan company (a very respectable one) and we cannot accept business bank accounts. As far as I'm aware, the payment must be put into and come out of a personal bank account in your name.

As a side note, why do you not have a bank account- it seems silly in this day and age.

If it was a HP agreement, I'm sure they would have repossessed the car by now wouldn't they?

Now, if your credit agreement does say that it is a personal loan then you can't really do too much because you have signed it and therefore aphave agreed that you have read and fully understood the agreement.

somethingcorporate

What does the agreement you signed say?

Personal Loan, or Hire Purchase.

It'll likely be the very first or second thing on the document.

I'm not sure you'd have any rights here given you'd have signed something agreeing to the terms and have consequently broken the most fundamental one (repayment on time).

iolanthe07

I couldn't make the 1st payment, or the 2nd,3rd or 4th.

Wow! This, of course, is how lenders like Welcome are able to justify their huge interest rates. OP, you have had the use of a car for which you have massively defaulted. I honestly don't think you're going to get away with claiming it was 'miss sold' - miss bought, maybe. Even if they shouldn't have accepted a business bank account for a personal loan, surely you will have to come to some arrangement with whoever holds the debt.

chanz4

So op when taking the loan you would of known you couldnt repay, maybe looking on fraudulent.... also as long as you have permission a dd can be taken from any account

Apples2

matty1980 wrote: »

I would like to know how they could give me a personal loan using a business bank account statement, and if I have been mis-sold a loan,

This post is remarkable.
Unbelievable as it sounds, you were the one who bumbled into their office clutching those details. It's astonishing you didn't make ANY of the first four payments....

matty1980 wrote: »

and were I stand with this situation?

chanz4

Apples2 wrote: »

This post is remarkable.
Unbelievable as it sounds, you were the one who bumbled into their office clutching those details. It's astonishing you didn't make ANY of the first four payments....

the op actually skipped in and out, apples please dont lower his glory

matty1980

when I went to get the car, we were working for a big firm for sometime so work was steady, I even put the car I already had in part ex, ( welcome said I would get 1K part ex value, on the form though they only put £1 part ex value ) I got the car in oct 2007.....work started slowing towards the xmas. on the agreement they had me sign 3 areas,

" this is a credit agreement regulated by consumer credit act 1974. sign it only if you want to be legally bound by its terms. "

" This Is a hire-purchase agreement regulated by the consumer credit act 1974. sign it if you want to be legally bound by its terms. "

and a part wishing to take out ppi, breakdown, recovery, shortfall insurance.

on this document the sales person hasn't signed anywhere.

iolanthe07

on this document the sales person hasn't signed anywhere.

Well, maybe - but I don't see as how this justifies you getting the free use of a car for years and years, and I don't think a County Court judge would either.

somethingcorporate

matty1980 wrote: »

when I went to get the car, we were working for a big firm for sometime so work was steady, I even put the car I already had in part ex, ( welcome said I would get 1K part ex value, on the form though they only put £1 part ex value ) I got the car in oct 2007.....work started slowing towards the xmas. on the agreement they had me sign 3 areas,

" this is a credit agreement regulated by consumer credit act 1974. sign it only if you want to be legally bound by its terms. "

" This Is a hire-purchase agreement regulated by the consumer credit act 1974. sign it if you want to be legally bound by its terms. "

and a part wishing to take out ppi, breakdown, recovery, shortfall insurance.

on this document the sales person hasn't signed anywhere.

If it says HP then it isn't a personal loan, it will be secured against the asset.