We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Mis sold personal loan agreement

Hello everyone

I need a little help with an ongoing dispute. In 2011 I purchased what I thought was a finance agreement (HP) for a road legal quad bike with blackhorse. The dealership I used was based in essex and I live in birmingham so rather than go all the way and find out i would'nt be approved I gave my details to the dealer over the phone to make sure I would be approved which I was. I went and got the bike and signed the paperwork. Now my circumstances have changed and I found out that I can VT (voulntary termination) the bike under the consumer credit act so I called blackhorse to do just that. What i have found out is that instead of a HP agreement they gave me a personal loan which if i had known I would not have done as I would have gotten a better deal elsewhere. I have been mis sold.

My question is what should I do? And can I get out of this agreement?
«1

Comments

  • Clive_Woody
    Clive_Woody Posts: 5,887 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Hello everyone

    I need a little help with an ongoing dispute. In 2011 I purchased what I thought was a finance agreement (HP) for a road legal quad bike with blackhorse. The dealership I used was based in essex and I live in birmingham so rather than go all the way and find out i would'nt be approved I gave my details to the dealer over the phone to make sure I would be approved which I was. I went and got the bike and signed the paperwork. Now my circumstances have changed and I found out that I can VT (voulntary termination) the bike under the consumer credit act so I called blackhorse to do just that. What i have found out is that instead of a HP agreement they gave me a personal loan which if i had known I would not have done as I would have gotten a better deal elsewhere. I have been mis sold.

    My question is what should I do? And can I get out of this agreement?

    I suspect it's a bit late 2 years after signing the agreement to now notice that it isn't HP and try and query this.

    Not sure how you have been 'mis sold', you were given a finance agreement, you got to read through it and then signed it and took away your goods?

    You could try selling the quad bike and use the funds towards repayment of the remainder of the loan but I suspect that there will be a shortfall that you need to make up.

    Sorry to sound harsh but you really need to check these things before signing. Only possible straw to grasp at is if you have evidence in writing that you said you wanted an HP agreement.
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
  • What evidence do you have that you explicitly asked for a HP agreement? What does the agreement you actually signed say it is?

    In what way would you have been better off going elsewhere? Presumably if you were told its $X a month for Y months and after that its yours. You compared this to other offers and decided this was as good as you could get?
  • I have no written evidence all I have is what I was told and led to believe. The garage have confirmed that they said it was a finance agreement (which is what this is) but didn't say it was a personal loan. The agreement says it is a personal loan.

    I didn't actually check elsewhere but as I had an excellent credit rating and I was being given loads of offers by my bank I presume I would have got a better offer from them.
  • Foxy-Stoat_3
    Foxy-Stoat_3 Posts: 2,980 Forumite
    What does the agreement that YOU signed say?

    A finance agreement is a loan....or HP.

    You can get out of the agreement by selling the quad and paying back the loan in full.
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
  • I suggest you find your paperwork and have a look.
    "You know when it's cold outside when you go outside and it's cold"
  • rather than go all the way and find out i would'nt be approved
    I didn't actually check elsewhere but as I had an excellent credit rating and I was being given loads of offers by my bank I presume I would have got a better offer from them.

    How do these two statements balance out? In the first post you didnt want to risk travel incase you were declined and now you say you had excellent credit prospects and would have gotten better from your bank.

    If you thought your bank would be cheaper why did you take finance from the dealer irrespective of if it was a loan or HP?
    I have no written evidence all I have is what I was told and led to believe. The garage have confirmed that they said it was a finance agreement (which is what this is) but didn't say it was a personal loan. The agreement says it is a personal loan.

    A personal loan is a finance agreement, as would HP be. So far you havent said anything to hint at them miss selling esp as you say the docs you read and signed before taking delivery state its a personal loan
  • I have had a look at the paperwork and its says a personal loan but this is not how it was explained to me. And I dont have the money to pay of the loan and most people wouldn't risk but a bike thats still on finance.
  • Foxy-Stoat_3
    Foxy-Stoat_3 Posts: 2,980 Forumite
    The onus is on you to read and understand the credit agreement.

    Whats it worth and what is the settlement figure and how much percentage deposit did you put down?

    Find out the settlement figure and what its worth, you can sell it and repay the finance.....do you have any other debts?

    As its a personal loan then there is nothing to tell the new purchaser about the finance.
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
  • I have had a look at the paperwork and its says a personal loan but this is not how it was explained to me. And I dont have the money to pay of the loan and most people wouldn't risk but a bike thats still on finance.

    "Reading the small print" before signing anything is generally a good idea.

    If you signed it, you're now tied into it. Lesson now learnt for the next time. Sell the bike and pay back what is owed.

    Good luck for the future.

    AMD
    Debt Free!!!
  • At that time I was going through a mortgage deal so I thought I wouldnt get approved for the bike. I didnt pay too much attention to the documents because 2 years earlier a friend of mine had bought a bike from the same dealership on a finance agreement so i trusted them
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 347.1K Banking & Borrowing
  • 251.6K Reduce Debt & Boost Income
  • 451.7K Spending & Discounts
  • 239.3K Work, Benefits & Business
  • 615.1K Mortgages, Homes & Bills
  • 175K Life & Family
  • 252.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.