Can anything be done about loan "mis-selling"?

Afwx

Three years ago I bought a new car part-exchange at a well-known dealership in Harrogate. They really annoyed me by taking 2 weeks to get the car ready and then 3 hours to do the paperwork - I left annoyed but with the new car.


Last month I got the "annual update" from the finance company and noticed I was paying 20% APR on a 6 year loan! Clearly I'm paying off the balance immediately. However...


I'm pretty savvy about interest rates having worked in FX and would not have signed up for anything more than about 10% at worst, and I think I was verbally quoted the rate as 10% (I know but it was part-exchange of an existing agreement) but they must have told me the Flat Rate and not the APR - yet APR should have been on the agreement I signed.
Looking at the paperwork I can see that the agreement I signed was not even a proper finance agreement more a bill of sale, and it had no indication of any interest rate I would pay written on it. To top this the loan company appear to also have no record of my signed agreement either.


So I could complain: however the complaints procedure is this: write to the company - if no joy within 8 weeks then write to the Ombudsman - if still no joy use the courts.


In the end it is highly likely that I was done by the guys at the dealership, but have they even acted illegally? Would writing to the finance company get me anything other than a "ha ha, bad luck" response?


So is there anything can really be done about this kind of thing, or does this just happen to loads of people all the time and we just have to transfer the balance and lump the loss?

poppasmurf_bewdley

Afwx wrote: »

Three years ago I bought a new car part-exchange at a well-known dealership in Harrogate. They really annoyed me by taking 2 weeks to get the car ready and then 3 hours to do the paperwork - I left annoyed but with the new car.


Last month I got the "annual update" from the finance company and noticed I was paying 20% APR on a 6 year loan! Clearly I'm paying off the balance immediately. However...


I'm pretty savvy about interest rates having worked in FX and would not have signed up for anything more than about 10% at worst, and I think I was verbally quoted the rate as 10% (I know but it was part-exchange of an existing agreement) but they must have told me the Flat Rate and not the APR - yet APR should have been on the agreement I signed.
Looking at the paperwork I can see that the agreement I signed was not even a proper finance agreement more a bill of sale, and it had no indication of any interest rate I would pay written on it. To top this the loan company appear to also have no record of my signed agreement either.


So I could complain: however the complaints procedure is this: write to the company - if no joy within 8 weeks then write to the Ombudsman - if still no joy use the courts.


In the end it is highly likely that I was done by the guys at the dealership, but have they even acted illegally? Would writing to the finance company get me anything other than a "ha ha, bad luck" response?


So is there anything can really be done about this kind of thing, or does this just happen to loads of people all the time and we just have to transfer the balance and lump the loss?

Those two statements I've highlighted in bold do not seem to be compatible.

However, it all depends on the documents you signed. Being 'savvy', you would have read through them before signing - wouldn't you?

We have so many people coming onto this forum complaining about being sold an unfair loan, but none have ever come back telling us they have succeeded in getting an unfair loan nullified.

So it all boils down to what you signed. Over to you.

iolanthe07

more a bill of sale

If it really was a Bill of Sale in the legal sense then you might want to take some professional advice as Bills of Sale come under different rules, iirc.

Afwx

I did read the document. It is here - back and front:
https://

drive.google.com/file/d/0BxPBtnXirivEWDhJWGtXQVNjaW8/view?usp=docslist_api

drive.google.com/file/d/0BxPBtnXirivENml2akdUOVRuREk/view?usp=docslist_api

This is the only paperwork I was given. The exact issue is that it appears I signed an order form but not an actual agreement with any "explain" of the interest rates. The question is, are these finance companies selling loans without actually signing a proper credit agreement form?

Remember that the dealership is not obliged to accept a vehicle in part-exchange so you are in a position where you have to accept their terms if you want to buy the new vehicle unless you have a lot of spare cash around. You can't just shop around for the best deal in these situations, and can't generally carry two finance deals at the same time, or sell one car and have no car until you get another either - so they have you over a barrel somewhat.

ReadingTim

If you're "pretty savvy about interest rates having worked in FX and would not have signed up for anything more than about 10% at worst" then why did you take the word of a used car salesman about the rate you'd be paying? Such individuals are hardly noted for their honesty and clarity are they...?!?

Surely, a savvy FX professional such as yourself would have insisted on seeing the numbers written down and only then signed; rather than driving their new car off into the sunset without a further thought....

The Fast Show's Swiss Toni would claim that "selling car finance is like making love to a beautiful woman..." but unfortunately mate, it's you that's been f*cked.

Sorry if this isn't what you wanted to hear.

dresdendave

Afwx wrote: »

Remember that the dealership is not obliged to accept a vehicle in part-exchange so you are in a position where you have to accept their terms if you want to buy the new vehicle unless you have a lot of spare cash around. You can't just shop around for the best deal in these situations, and can't generally carry two finance deals at the same time, or sell one car and have no car until you get another either - so they have you over a barrel somewhat.

I would suggest it is the customer who has the dealer over a barrel, unless they come up with a deal you are happy with, you can walk away and buy elsewhere.

Afwx

Is there a minimum age for this forum?


You guys are missing the finer point: I'm not asking for opinions. I don't care if you think I may have been a bit slack, or whatever.


Financial mis-selling is financial mis-selling. No room for arguments.


And I'm saying that they appear to have set up a loan without getting me to sign a proper agreement with any rate written on it by getting me to sign an order-form rather than a finance agreement. Who do I complain to?

davemorton

Afwx wrote: »

Is there a minimum age for this forum?


You guys are missing the finer point: I'm not asking for opinions. I don't care if you think I may have been a bit slack, or whatever.


Financial mis-selling is financial mis-selling. No room for arguments.


And I'm saying that they appear to have set up a loan without getting me to sign a proper agreement with any rate written on it by getting me to sign an order-form rather than a finance agreement. Who do I complain to?

Sorry, I cant answer your question, but I would have thought with you being pretty savvy about interest rates having worked in FX, you would have known this.

foxy-stoat

Afwx wrote: »

Financial mis-selling is financial mis-selling. No room for arguments.

I think you are confusing mis-selling with mis-buying - you clearly have mis bought this finance package.

In 2013 you bought this car and have been paying the monthly payments for 36 months.....and on month 36 you realised what the interest rate was following receiving the annual statement. Have you not received two previous annual statements with this information on? It may be hard to complain half way through the agreement, but you could be at the half way point so if you wanted out of this Scenic you could just hand it back.

Also, where is the 3rd page on the invoice?

How much is your monthly payments? Its pretty easy to work out that the captial repayments on the loan are £126.33 plus the interest.

PeacefulWaters

Car dealers quoting flat rates and then getting you to sign a credit agreement where the APR is around double the flat rate has been going on for years.

Both rates are accurate. So what's the complaint about?

By all means talk to trading standards. Perhaps lobby the FCA to ban any talk of flat rates in sales patter. Or just put your brain in gear next time you get credit.

Afwx

Now that is finally a better response.

Point: You all seem to agree that this is common practice, but perhaps you all think it is generally 'allowed', except at banks right? This tacit acceptance of fraud as acceptable common practice by you all smells a bit like turning a blind eye. I thought we'd all moved on from all that.

I'm clearly asking the wrong people about my valid contract issue. But then you guys aren't really qualified to give financial advice are you?
I'll ask the ombudsman.

Thanks for the hot air guys.