Carcraft and Creation Finance problems

NightmareZoo

Hi All,

I'm dealing with a query on behalf of my mother, and trying to see if there is anything that can be done. My mother purchased a car through Carcraft in Jan 2012. Throughout all of the discussions in their office, both her and her husband were assured that the finance was a HP agreement, and the advantages of this is that they could hand the car back after so long, as they have done with a previous car they owned. There were 4 staff members in the office with them at the time the deal was done, were not given any chance t read the paperwork, and really pressured into signing the agreements.

We have now discovered that the HP agreement is actually a fixed sum loan agreement provided by Creation Finance. The car also has a marker that states it has finance linked to the car. Now neither of them are stupid when it comes to money, and never would have agreed to buy the car had they known it was a loan rather than HP, and even more so, never would have agreed a 20% APR when both have really good credit scores and could have found a much better deal looking elsewhere.

When speaking with Creation, their basic reply is tough, should have read t&c etc, and we are unable to complain to Carcraft as they no longer exist. We feel as though this whole loan has been mis-sold by Carcraft, and wondering if there is anything that we can do regarding this?

Can anyone lend any advice on what would be the best way to go regarding complaining, and are we covered under the consumer credit act, consumer rights, or if the FOS would be able to look into a complaint of this nature?

Thanks in Advance

DCFC79

Credit scores mean nothing when it comes to finance, lenders don't see it, they see the history.

What did the paperwork say that they signed ?

If it didn't say HPI why did they not walk away.

NightmareZoo

They were pressured into signing without being given a chance to read the documents they were given. There were 4 salesmen in the room with them, all advising the same thing that this was a HP agreement they were signing.

Also could a HP flag be removed from the car when it is a personal loan that they signed? and should there even be a flag on the car in the first place?

NightmareZoo

Also is it a legal requirement for annual statements to be sent for fixed sum loan agreements?

antrobus

NightmareZoo wrote: »

Also is it a legal requirement for annual statements to be sent for fixed sum loan agreements?

Yes, s6 CCA 2006.

NightmareZoo wrote: »

....When speaking with Creation, their basic reply is tough, should have read t&c etc, and we are unable to complain to Carcraft as they no longer exist. We feel as though this whole loan has been mis-sold by Carcraft, and wondering if there is anything that we can do regarding this?

Well, yes, that would be one problem. Your complaint would be that Carcraft misrepresented the nature of the finance agreement and CC Automotive Group Limited, trading as Carcraft, is in liquidation. It might be possible to seek redress from the FSCS.

Your other problem would be proving a loss. I don't know how you would show that someone had suffered a financial loss as a result of not being able to VT some car finance.

NightmareZoo

Great thanks, i did not think about the FSCS - I have drafted a letter of complaint to go to Creation first, then if that fails there is either the FOS or FSCS to look into.

Gaz83

Your problem is proof, and in particular proving Carcraft misrepresented the nature of the finance, though. Your parents have signed to say they are happy to receive a personal loan. It's going to be difficult to prove that this is not what they were promised.

PeacefulWaters

It's taken three years to spot the type of loan and interest rate?

Why?

neither of them are stupid when it comes to money, and never would have agreed to buy the car had they known it was a loan rather than HP

Why not?

What's changed?

SeanG79

NightmareZoo wrote: »

Also could a HP flag be removed from the car when it is a personal loan that they signed? and should there even be a flag on the car in the first place?

Yes, call them and tell them to remove the marker...If it is a fixed sum loan, it is not secured on the vehicle and you can sell it.

There are several funders who still place a marker on HPI for fixed sum loans, which they say they do to protect the customer but if you ring them up, they will need to remove the marker.

poppasmurf_bewdley

NightmareZoo wrote: »

Hi All,

I'm dealing with a query on behalf of my mother, and trying to see if there is anything that can be done. My mother purchased a car through Carcraft in Jan 2012. Throughout all of the discussions in their office, both her and her husband were assured that the finance was a HP agreement, and the advantages of this is that they could hand the car back after so long, as they have done with a previous car they owned. There were 4 staff members in the office with them at the time the deal was done, were not given any chance t read the paperwork, and really pressured into signing the agreements.

We have now discovered that the HP agreement is actually a fixed sum loan agreement provided by Creation Finance. The car also has a marker that states it has finance linked to the car. Now neither of them are stupid when it comes to money, and never would have agreed to buy the car had they known it was a loan rather than HP, and even more so, never would have agreed a 20% APR when both have really good credit scores and could have found a much better deal looking elsewhere.

When speaking with Creation, their basic reply is tough, should have read t&c etc, and we are unable to complain to Carcraft as they no longer exist. We feel as though this whole loan has been mis-sold by Carcraft, and wondering if there is anything that we can do regarding this?

Can anyone lend any advice on what would be the best way to go regarding complaining, and are we covered under the consumer credit act, consumer rights, or if the FOS would be able to look into a complaint of this nature?

Thanks in Advance

NightmareZoo wrote: »

They were pressured into signing without being given a chance to read the documents they were given. There were 4 salesmen in the room with them, all advising the same thing that this was a HP agreement they were signing.

Also could a HP flag be removed from the car when it is a personal loan that they signed? and should there even be a flag on the car in the first place?

In what way were they 'pressurised' into signing the agreement without being given the chance to read it first?

Gun to the head? Threat of not letting them buy the car? Shouting at them to sign? Locking the showroom door so they couldn't leave?

Speaking from memory, every time I signed an agreement to buy a car, I had the opportunity of walking away if there was something I wasn't happy with.

The fact they didn't put their feet down with a firm hand is their own fault and they can't blame 'pressure' for not reading the terms they were signing up to.

antrobus

PeacefulWaters wrote: »

It's taken three years to spot the type of loan and interest rate?

Why?

Why not?

What's changed?

I'll have a guess.:)

They took out what they thought was a 5 year HP deal on a car, and once they'd got passed the half way stage, tried to VT and were told by Creation they couldn't because it was a personal loan and not HP.