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Personal Loan not Hire Purchase

suz_87
suz_87 Posts: 41 Forumite
Home Insurance Hacker!
in Loans
I have recently discovered that when I bought my car instead of setting up a hire purchase type finance agreement the garage have actually signed me up to an unsecured personal loan.

My question is are they allowed to do this without my knowledge and if not is there anything I can now do about?

Thanks
SPC #527

Comments

  • thebritishbloke
    thebritishbloke Posts: 1,472 Forumite
    It would have been on the documents that you signed, so no there's not really anything you can do about it.

    Is there a problem for you with it being a personal loan rather than HP?
    Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.

    ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.
  • suz_87
    suz_87 Posts: 41 Forumite
    Home Insurance Hacker!
    No problem as such. Just was unaware. Has been causing a few issues as car has been written off
    SPC #527
  • thebritishbloke
    thebritishbloke Posts: 1,472 Forumite
    suz_87 wrote: »
    No problem as such. Just was unaware. Has been causing a few issues as car has been written off

    Even if the car was written off under a HP agreement, you would still have to follow through with the repayments (although you could voluntarily terminate it at the 50% mark of your payments).

    Are you getting the car replaced under your insurance?
    Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.

    ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    suz_87 wrote: »
    I have recently discovered that when I bought my car instead of setting up a hire purchase type finance agreement the garage have actually signed me up to an unsecured personal loan.

    My question is are they allowed to do this without my knowledge and if not is there anything I can now do about?

    Thanks

    in what way do you think you gained an advantage or suffered a disadvantage?
  • Edi81
    Edi81 Posts: 1,514 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Personal loans are offered by hp companies typically when the loan vs the CAP valuation is too high.

    Did you roll up a previous hp outstanding balance into the new agreement? If you had some negative equity on your last agreement e hp company would give a personal loan rather than hp.

    Really, you should have read the agreement before you signed it. The type of agreement should be at the top of the bit of paper.

    As Clapton said why do you think you have been disadvantaged? We're you planning on vt'ing? Or have you gotten into arrears?
  • poppasmurf_bewdley
    poppasmurf_bewdley Posts: 5,944 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    suz_87 wrote: »
    I have recently discovered that when I bought my car instead of setting up a hire purchase type finance agreement the garage have actually signed me up to an unsecured personal loan.

    My question is are they allowed to do this without my knowledge and if not is there anything I can now do about?

    Thanks

    It wasn't without your knowledge. The documents you signed will have made it very clear what sort of loan you were taking out. If you were too lazy to read those documents you have nobody to blame but yourself.

    And there is nothing you can now do about it other than pay off the loan.
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
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