left to pay for a car i have never owned.

vitaminv

[hello everyone, i hope somebody can help me.

back in 2007 my mother was declined a hp agreement for a new car (a peugeot garage) due to very poor credit. My mother then pressured me (i was 18 at the time) to go down and simply sign my name. i did. the payments got paid (by her) for a few months. the car was never in my name, i was never insured to drive it. the car was then sold for something stupid like £300 (the loan was for £7000 and then some) when she fell on hard times. the car was never seen again. the loan is now wanting to be paid, its been passed to an agency.

My question is, how can the car dealer get away with this? due to fsa responsible lending laws.. you can't knowingly pass a loan on for somebody with no/ poor credit. and the car was never ever in my name. so how did it go though. can i take the dealer to court? do i just suffer and start to pay it back slowly. is there anything i can do...? I really feel stuck and the fact that my mother put me in this situation just makes the whole thing sting even more.

ultimatefighter

The first problem is that she bought a Peugeot which do not hold much value at all. Why would she have sold it for so low and not even have you drive it etc?

This is called an acomodated deal where someone else who is not the driver signs for a credit agreement for someone else to have the asset. It's not so bad if it is family. It's surprising that the lender didn't see the application from the same address and decline it. The loan is from 2007. That is 7 years ago and usual car loans run for 5 years. There is info missing. Was this loan defaulted a few years back? Was it a 5 year HP agreement?

You said the car was £7000 or more and the. A few months later sold for £300. That's strange in itself but people will do as they will.

Technically the loan hasn't been "passed on" to you as you signed the agreement at the time and agreed to the T&C and signed the ADEQUATE EXPLANATIONS and the the ACTUAL AGREEMENT and the DIRECT DEBIT MANDATE. A dealer is required by the FSA to keep documents for 6 years. It's now run passed that date now so it will be too late to do anything about it even if you were entitled to do anything.

I'm afraid the only solution will be to apply for a discounted amount from the collection agent as they have bought the debt at a lower rate. At least your credit rating will be better from a SATISFIED loan instead of it being DEFAULTED still which will possibly affect your ability to obtain credit in the future.

downhillfast

In short the loan isn't being 'passed on' to you; it was your responsibility - that's in essence what you were signing for.

Although the V5 documents may never have been in your name and you never had it insured in your name this doesn't mean you weren't the owner. The owner is the person who paid for it - ie you as the loan was (by the sounds of it) in your name.

Pretty carpy position to be in that only shows how being a guarantor for anyone ultimately ends in tears:(

Abbafan1972

I can't offer any advice, but some mother!

Gaz83

Your anger should be directed to your mother, not the car dealer - who have done nothing wrong.

macman

You were 18, an adult and willingly signed the credit agreement. I cannot believe that you were therefore unaware that if your mother defaulted on the payments, then the debt would be yours.
You and your mother bear the only responsibility for this, not the dealer or finance co.

InsideInsurance

downhillfast wrote: »

Although the V5 documents may never have been in your name and you never had it insured in your name this doesn't mean you weren't the owner. The owner is the person who paid for it - ie you as the loan was (by the sounds of it) in your name.

The V5 does only show the registered keeper but the owner isnt necessarily the person that paid for it, its the person on the contract of sale.

What lending laws? There are code of practice about responsible lending but no actual laws (at least not what you mean) and from memory the code only came into being in 2011 anyway.

As to what do you need to do? Deal with the debt you agreed to and also learn how to deal with your mother. I know some here will say that this is harsh but it is unfortunately true

vitaminv

okay thanks everyone.

vitaminv

it looks like i have to pay it, i just thought if there was anyway i could get out of it because its a lot to me. lesson of life, don't trust anyone. does anyone know how much they tend to knock off when you pay a settlement?
i'm angry but just because i wish i didn't sign for it. its ruined everything. i know i was 18 but i thought it shouldn't of been allowed because she got declined. and i know from working to fsa guidelines that its irresponsible lending to then do the same loan in anthers name for somebody who can't afford it. but it was too long ago now. the car was sold for so little because she wanted money, any amount. i moved out shortly after the hp was taken out so didn't know a lot about it. its my mistake i know. as much as it pains me i will pay it and move on. it really keeps me awake at night. i know it wasn't passed to me i meant it was passed to an agency.

Tixy

When did you last pay anything towards the debt? or if you never paid anything towards it when did mother last pay anything?

Might you be in a position to make a lump sump payment to clear the debt?

glentoran99

vitaminv wrote: »

it looks like i have to pay it, i just thought if there was anyway i could get out of it because its a lot to me. lesson of life, don't trust anyone. does anyone know how much they tend to knock off when you pay a settlement?
i'm angry but just because i wish i didn't sign for it. its ruined everything. i know i was 18 but i thought it shouldn't of been allowed because she got declined. and i know from working to fsa guidelines that its irresponsible lending to then do the same loan in anthers name for somebody who can't afford it. but it was too long ago now. the car was sold for so little because she wanted money, any amount. i moved out shortly after the hp was taken out so didn't know a lot about it. its my mistake i know. as much as it pains me i will pay it and move on. it really keeps me awake at night. i know it wasn't passed to me i meant it was passed to an agency.

but they didnt, they leant you the money,