Car Finance how to get out of

mcpitman

xterm wrote: »

Thank you for all of the replies

after speaking to "The Funding corporation" they've stated as it was not a hire agreement they will not accept the return of the car to be let out of the agreement. If I want to I can send them a "voluntary surrender letter" then car to them they will take it and get what they can for it and remove the amount from the total owed minus and costs of recovery which will probably be nothing.

So after 4 years I'll end up paying £3000 for something I don't have

Chalk it up to experience, admitteedly an expensive ecxperience.

Of course, you have kept the car in excellent condition and kept up with all the recommended service intervals though haven't you?

Oh and next time if someone (anyone) offers you a 50% APR loan, on a depreciating asset, run away, fast.

magpiecottage

This thread now seems to relate to two complaints from two people.

Xterm - you can complain to the lender that you consider the fault to have been present at outset and they are jointly liable under section 75 of the Consumer Credit Act 1974. If they do not agree with your requirements you can escalate it to a complaint. If you do not like the outcome, you can refer it to the Financial Ombudsman Service.

For what it's worth, after four or five years, it will be for you to prove that the fault was there when you bought it, not the lender (or dealer) to prove otherwise.

If the loan was not arranged by the dealer you bought the car from, you may also have difficulty proving that the lender is liable.


Malamadzia - it sounds like you have what is known as an adjudication. This means an adjudicator - like a sort of junior ombudsman - has made a recommendation that the business settles.

They have the right to reject that recommendation - as do you. If that happens, it goes to an Ombudsman for a final decision. When that happens, you will normally be given a month to either accept or reject it. If you accept it, it becomes legally binding on both sides. The business gets no say at that point. Obviously, if you want to accept, you need to get the reply back in time.

In the meantime, you should tell FOS that you are still without a car and having to make repayments. Also keep receipts for public transport etc. and send copies to FOS asking that they award payments for that as well.

DCFC79

magpiecottage wrote: »

This thread now seems to relate to two complaints from two people.

Thanks for pointing that out, didn't realise there were 2 new posters in the thread and I think some other posters may have thought the same as me.