does a finance company have to tell you whats in your credit agreement

lucifer666

Hi to All, I defaulted on a credit agreement as I was ill and no longer could work I had ppi on my hp but did not know what is was for or that I could claim the finance company came to my house and spoke to me and said It would be best to surrender the bike so they could sell it and make funds. should they of told me I had ppi and could of made a claim on it as that was stated on my policy which I had no copy of at the time I surrendered the bike and did not know what is was for? hope I can gets a answer . kind regards

[Deleted User]

They're not under any requirement to.

lucifer666

even if they new I was ill and could not make payments as it was stated on their credit agreement surely im covered by the consumer credit act 1974? as the point is I did not know what ppi was for or what it did. kind regards

Cornucopia

Whose choice was it to surrender the bike - yours or theirs?

lucifer666

it was there's as I could not make the payments and they came to my home to discuss the account but never mentioned I should of been covered by ppi as I was very ill

Cornucopia

I think you have grounds for complaint. Do you know how much money was lost by the cancellation of the loan?

Is this a well-known company?

lucifer666

basicly it was £18000 I paid the premiums for a year then fell ill I surrendered the bike to them but they sold it for silly money leaving £10,000 outstanding still, they are black horse finance now im claiming ppi back they are only doing the balance on the 12 months I paid but my argument is that the ppi could of helped me as I was ill if I knew I had it and I could claim and what it was for but they never mentioned it to me. so in theory I could of made a claim against the ppi at the time and would of never had surrendered the bike and that would of kept the payments up until I was better and started paying again if you get what I mean. kind regards again

lucifer666

what was the point in the ppi in the first place If it didn't cover what it said it was ment to even though i did not know what it was for as I was miss sold, I fell ill and they did not even acknowledge I had it or even told me that I could claim against it because I was ill, so it stood for nothing and as I was ill I had to surrender the bike as I was getting no way near enough money to cover monthly instalments, had I known what it was and that I could put a claim in I would of as it would allow me to keep hold of the bike and make payments til I was better. the thing that makes it worse is the selling of the bike did not make much dent in the finace amount and there was still £10,000 left and I was in exactly the same position still owing money its a joke

Cornucopia

I suspect you are going to need to take advice on this.

You'll also need to know what you should have been entitled to, if you had made a claim under the PPI policy.

Your claim is essentially that they acted unfairly and inappropriately in cancelling the loan when they knew that there was a potential PPI claim that could be made.

I would be careful about settling your PPI claim, because the settlement of it may prejudice this claim.

lucifer666

that's the thing the policy was never cancelled it kept running and built up nearly £2000 in interest charges as I had no way to pay, I thought that they would of been bound by the contract terms to tell me all my rights? thanks

Cornucopia

There's no obligation to give you information, however there is an obligation to treat you fairly, to treat you in accordance with the law, and to treat you in accordance with the credit agreement.

I think you'll need professional advice from someone who will actually read the terms of the agreement and work out whether they were even entitled to take the bike back without cancelling the agreement. Unfortunately, I don't know the answer to that, so I won't speculate about it.

In taking the action they did, the further question arises as to why they did not instigate a PPI claim. I assume it would have been down to them to administer a PPI claim?