Need help regarding contract law for Loan

Phil_Linder

SeanG79 wrote: »

With the FCA having taken over regulating the Consumer Credit Industry, I would consider approaching them. The FCA is all about treating customers fairly.

You said you recently took the finance, was this within the last 14 days? If so, you are within your rights to cancel the finance agreement and seek an alternative means of financing it.

Dealers speak in flat rates, but the pre-contract (SECCI) will highlight all payments, including documentation fees and option to purchase/completion fees. It will also clearly state the APR.

Hi Sean,

No its over 14 days now. I made the complaint within that period but it took them nearly 8 weeks to respond.

I never actually signed an agreement that was presented to me though. I had to sign an electronic pad which transferred my sig on to the agreement. This was then printed and given to me afterwards.

I thought TCF was meant to protect consumers from this kind of underhand tactic. Companies are required to disclose all main parts of the agreement and are not permitted to hide things in small print and Ts&Cs. Or so I thought?

Gaz83

To be honest, presumably you were happy to hear the monthly repayments as, after all, this is the important bit? And it shouldn't really matter if you were quoted the APR or the flat rate?

I would guess that the reason dealers quote flat rates and repayment amounts rather than APRs is that the vast majority of customers would prefer to hear them rather than a convoluted explanation of APR. I know I would, and I'm a mathematician so would have no problem at all understanding the APR in any case.

SeanG79

Only thing I can suggest then at this point would be to complain to the FCA (Financial Conduct Authority) as they are the regulators, if you have no luck there, then the ombudsman.

The pad that you signed is an e-signature which most of the major car finance lenders have started to use. I haven't seen one but I would assume before you sign the pad, a check box will need to be selected stating that you agree to the T&C's, in the same way as online personal loan applications.

bargainbetty

The interest rate isn't usually in the 'small print'. It is usually listed under a specific clause and clearly stated. You would have been notified of the monthly payments, total borrowed and total repayable. All of these things would have been clear on an approved contract.

You were responsible for checking these facts and figures yourself. A contract is a legally binding document and should not be signed unless you have satisfied yourself that the terms are accurate.

You could speak to the loan company about an early settlement sum (which would save you a bundle on interest long-term) if you can obtain your cheaper loan elsewhere and use it to pay off the finance.

Contract law is fairly simple - if you are of age and not under duress, you are legally responsible for checking what you are signing. I'm sorry, but there isn't a kinder way of saying it.

AndyT678

Maybe I'm missing the point here but isn't your issue with Motor Range rather than Black Horse? I don't doubt that the 2nd hand car salesman is a slippery sod but from BH point of view a credit agreement was correctly filled in and signed. No?

As far as I can see they haven't done anything wrong have they? What specifically should they have done differently?

Phil_Linder wrote: »

the response from Black Horse and Motor Range is almost criminal.

Phil_Linder wrote: »

I have complained to Black Horse and they have taken the typical stance of me signing the agreement so its my fault.

Not sure why you think that BH expecting you to honour a contract that you signed (without reading) is a criminal offence.

Phil_Linder wrote: »

They use loop holes to explain rates and quite frankly its done to confuse and mislead people to make products sound more appealing.

At what point did BH do this? Or did the document that you didn't read have all the correct info on it?

National_Debtline wrote: »

In accordance with the Consumer Credit Act you can cancel the finance within 14 days of signing.

So do this.

SeanG79

AndyT678 wrote: »

Maybe I'm missing the point here but isn't your issue with Motor Range rather than Black Horse? I don't doubt that the 2nd hand car salesman is a slippery sod but from BH point of view a credit agreement was correctly filled in and signed. No?

As far as I can see they haven't done anything wrong have they? What specifically should they have done differently?





Not sure why you think that BH expecting you to honour a contract that you signed (without reading) is a criminal offence.




At what point did BH do this? Or did the document that you didn't read have all the correct info on it?



So do this.

The Dealer will have/should have interim permission from the FCA, as will BH, but I agree, redress should be sought from the dealer and not BH

Phil_Linder

BH pay Motor Range a commission for securing finance. So as acting as one of their intermediaries BH are responsible for the finance agreement.
I'm not saying BH have done anything wong. But the resolution must be done by them. As Motor Range took no responsibility and were a little intimidating when trying to deal with them.
I agree I was told the repayment amount. But I had no idea at that point what the interest rate was against at that point so had no reason to challenge it. Its the first time I have ever dealt with a dealer financing and I have definitely learned something.

I'm annoyed in myself at being duped. I thought this kind of practice was a thing of the past.

Gaz83

Phil_Linder wrote: »

BH pay Motor Range a commission for securing finance. So as acting as one of their intermediaries BH are responsible for the finance agreement.
I'm not saying BH have done anything wong. But the resolution must be done by them. As Motor Range took no responsibility and were a little intimidating when trying to deal with them.
I agree I was told the repayment amount. But I had no idea at that point what the interest rate was against at that point so had no reason to challenge it. Its the first time I have ever dealt with a dealer financing and I have definitely learned something.

I'm annoyed in myself at being duped. I thought this kind of practice was a thing of the past.

Presumably you were more than happy with the monthly repayments?

BillJones

Phil_Linder wrote: »

I'm not saying BH have done anything wong. But the resolution must be done by them.

No, it really must not. You have the right to cancel within 14 days, but you do not have the right to demand any other variation of the terms.

One option could be that you simply ask for a settlement figure, and pay off what you owe. If your loan rate is "unfair" then you will not have a problem securing a lower rate elsewhere.

k3lvc

Gaz83 wrote: »

Presumably you were more than happy with the monthly repayments?

And this should be the fundamental of the argument - surely the OP realised that the repayments on a loan quoted at 7% were not lower than those quoted on a loan at x% APR

OP - you're clutching at straws here - you may have been duped during the process but the reality is you signed up to an agreement showing you the monthly payment, the interest rate (in APR terms), the total payable and any other associated costs yet now you're claiming not to have seen three of those bits of information

Next time you want to buy a car can you come to K3LVC's Motors and I''l sort you out with a great deal