Car finance company messing up

matttye

Hi

I bought a car on finance and have made several overpayments.

On the 6th September I made a £1,000 overpayment. By the 14th it still hasn't been applied to my account and didn't show up on my statement, so I emailed in to ask what was going on. They replied saying there were problems with the website and it would be applied as soon as the issues were fixed.

I then rang customer services a week later to ask for an update. They said that the payment had been applied to my account and my monthly repayments had been updated to reflect the overpayment. I asked which overpayment they thought I was talking about because my monthly payment hasn't changed. They were referring to a £400 oferpayment back in August.

At this point they asked for details of my £1,000 overpayment because it had effectively been lost. They found this and offered me £25 compensation as an apology, and again said they'll apply it to my account as soon as the system issues are fixed.

I made a formal complaint saying that even if there are website issues they should be able to apply the payment to my account and let me know what my new monthly payments will be. I had a generic response saying complaint will be passed onto their complaints team.

Today, I've had a £1,000 refund go into my bank with no explanation.

I've sent an email saying I want them to review their compensation offer once their system error is fixed because I expect to be put in the same position as I would have been had they applied my payment in the first place - ie. Not charged any interest in the £1,000 from the 6th September.

I just wanted to check that everyone agreed I should not be liable for the interest that accrues on the refunded £1,000 from now until they fix their system.

Gaz83

What's the interest rate you're paying?

Is £25 likely to be more or less than the extra interest you would have incurred on the £1,000 (for this to be the case, the interest rate you would have to be on would be about 30%).

matttye

Gaz83 wrote: »

What's the interest rate you're paying?

Is £25 likely to be more or less than the extra interest you would have incurred on the £1,000 (for this to be the case, the interest rate you would have to be on would be about 30%).

Interest rate is 7% but they haven't fixed the problem yet.

Gaz83

If the interest rate is 7% then you're going to be paying about £5.80 in interest per month on £1,000.

I think given that they've already offered you £25, and that this is more than four months' worth of interest, they'll be reluctant to offer you any more goodwill.

Bonfire_Bride

I would ask them whether they would cover the interest accrued since the failed £1000 payment...

They may be very helpful (depends who it is) and recalculate the outstanding balance by taking into account when the payment should have credited your agreement account.

Ask them...it's the only way you'll find out.

matttye

Gaz83 wrote: »

If the interest rate is 7% then you're going to be paying about £5.80 in interest per month on £1,000.

I think given that they've already offered you £25, and that this is more than four months' worth of interest, they'll be reluctant to offer you any more goodwill.

I don't want any more if what they have given me covers the interest I have been charged by the time they fix their problems. I hadn't done the calculations but if they've given me four months worth of interest at least then it seems likely they'll have it fixed by then.

I simply want to be in no worse of a position than I would've been had their system worked!

Thanks!