Kia underwriter approve finance on a car...then take it back!

OldStreetBum

Hi guys long time lurker here so I'll try and make it brief.

Needed to get a car as my old one had finally given up the ghost (steering column, suspension, electrics, all broken) and felt the money would be better invested in a new (or newer) car. Also felt it'd be a nice present for my fiancee.

Went along to Lifestyle Kia in Tunbridge Wells and they fitted us up with a 2014 Kia Picanto on finance with a £1000 deposit at about £132 a month for 48 months. Submitted my details to them and they sent it to the underwriter on Saturday. An hour later they came back with "Approved!"

So we signed on the dotted line and yesterday afternoon picked up the car without a hitch. Fiancee loved the car, over the moon, happy christmas, etc.

Then this morning I got a call from Lifestyle Kia apologetically saying that the underwriters had come back saying that they had gone over my credit report and said that now they were going to revoke their approval. They're effectively un-approving me! Deposit refunded and I've had to return the car this morning! Devastated is an understatement.

I've checked my Experian credit rating and its "fair". Pros are that I've settled all of my previous accounts without any issues but the con is that I had a high level of credit usage. However, that didn't stop me from getting a mortgage in the summer when I had a poor credit rating!!!

So my credit rating has actually improved since July!

I've been told I've got 21 days to appeal in writing. Is it worth it? What - if anything - can I do about this?!

Have a merry christmas everybody.

forgotmyname

Appeal it, You have nothing to lose. You might get to keep the car over xmas and add add another owner to the paperwork which wont be as nice to the next purchaser.

You only checked experian though. What about noddle and equifax?

OldStreetBum

Checked Noddle and that says much the same. Its a bit out of date with addresses which I'm rectifying now.

Anyway, went to start writing my appeal letter and I get a call from lifestyle kia again. Apparently they have got to the bottom to what was wrong.

Basically my fiancee went to check the car out first and tried getting it on her credit which was declined. They then try it on mine and initially its accepted until today when Santander - the underwriter I've just found out - do some digging and see my fiancee was declined first.

Therefore Santander suspect its a case of fronting? I.e. me trying to get the car for my fianc!e?

Anyway they've tried me on my own via Renault's underwriter and they've accepted me right away so they're going to try it with Renault as the car is preregistered.

EDIT: Forgot to mention this but we're both registered at the same address, hence the suspicion of fronting.

patman99

I would guess that Santander are just protecting themselves from any potential money-laundering issues in the future.
After all, it's anti-fruad software probably made the link between the pair of you.

colino

Well done on getting it resolved, but I have never heard of a car with finance approved, paperwork signed and car driven off the forecourt being recalled. If the new finance deal is a penny more expensive seek the difference from the original finance house: Worth complaining anyway to see if they will try and compensate their way out of an embarrassing failure.

OldStreetBum

Thanks guys. I've honestly never heard of such a thing either! Absolutely gobsmacked when I was told over the phone this morning.

Its looking more positive this evening than it was this morning but I'm not going to assume that it's sorted until the car is back on my drive!

The process now is that they'll run the agreement through Renault and wait until the underwriter has paid out before delivering the car to me.

Also more info on why Santander denied us. The finance agreement is under my name but the car is in my fiancee's name. Finally we both share the same address. So at first glance its an open and shut case of fronting but they didn't take into account our circumstances.

I've spoken the salesman's manager and given him a talking to and I'm going to see if I can get a discount or at least a couple of extras.

I'll let you all know what happened in the New Year but what a fiasco!