Mis-sold Loan - Was told it was Hire Purchase

John1993_2

damasta wrote: »

The main reason is the car has devalued quicker than the Greek economy. On HP I can get rid after 3 years on a personal loan I am stuck until I am in positive equity by selling.

This is not right. On a personal loan you can sell the car whenever you want, on P there are conditions as the loan is attached to the car.

If you don't want the car any more, and the finance is not on it, then just sell the car, put in the extra money to clear the loan, and you can walk away.

ILW

Was the word "loan" at the top of the agreement not a bit of a clue that is was a loan?

antrobus

John1993 wrote: »

This is not right. On a personal loan you can sell the car whenever you want, on P there are conditions as the loan is attached to the car.....

I think you misunderstand. The OP's plan was to get the car on HP and then VT it. As in, make half the payments then hand the car back - if the car is worth less than the remaining payments, that leaves the HP company eating up the loss, with an ordinary loan, you do not have that option, and you have to face that loss yourself.

SeanG79

The reason the bank have approved the finance on a fixed sum loan is to protect themselves against the negative equity if the customer decides to VT the agreement.

Fixed sum loans are often approved as opposed to HP when there is a small deposit or if they feel the vehicle is over-priced or if the customer has a history of VT on their searches. The banks are in it to make money, not set out to suffer a loss from the onset.

The vehicle is mentioned on the documents BUT the agreement will and does clearly state "fixed sum loan". You presumably read the agreement before signing. If you had decided not to agree to those terms, HP would probably have been available but more than likely on different terms.

Vectis

So, you admit you read and then signed the paperwork and it said 'Loan' at the top and now you're claiming mis-selling?

poppasmurf_bewdley

damasta wrote: »

I did, but like I say the paperwork was not clear. It references the car a lot, does not say the words personal loan so I assumed it was a HP.

The biggest flaw in your argument about mis-selling has been underlined in your statement above. If you had any doubt whatsoever, you should have sought clarification before you took delivery of the car.

damasta

poppasmurf_bewdley:-
Seek from who? The dealer had told me it was HP so I assumed it was.

Vectis:-
I, naively I admit, assumed that it was the same. Much in the same way that a mortgage is totally different from a loan and yet it is occasionally referred to as one.

poppasmurf_bewdley

damasta wrote: »

poppasmurf_bewdley:-
Seek from who? The dealer had told me it was HP so I assumed it was.

Err ... The Loan Company? CAB?

damasta

I was in the car show room having been told here's my HP agreement, I couldn't really say hold on a minute I just need to phone the citizens advice bureau a minute

poppasmurf_bewdley

damasta wrote: »

I was in the car show room having been told here's my HP agreement, I couldn't really say hold on a minute I just need to phone the citizens advice bureau a minute

No. What you needed to say was: "Hang on, this is not very clear. I need to get some advice before I go any further."

The problem was that you wanted to be off and get your hands on that shiny new car, and you assumed (that word again) everything was what you wanted. You are now suffering from not seeking advice.