Will an indemnity claim affect my credit rating?

LuckyBoyCarl

Good evening all.

This is my first post, I do apologise if I've posted this in the incorrect section.

I'm looking for a little help on whether or not doing an indemnity claim could affect my credit score?

The reason I ask is the following:
I currently have car finance with a well known dealer. I feel I was sucked into buying a new car a few years ago (my mistake and I will learn from that) and I'm not in the process of using my right to terminate my policy and hand the car back.

When applying to do this I've been presented with a letter from the finance company stating I do not owe anything for the car as I have paid at least 50% of the finance however I do owe £250 to cover my gap insurance? I've been informed by the finance company that I do not have the right to terminate this even though there is nothing about this in my contract. I've had my contract checked by a professional and they state the contract gives conflicting information.

The problem I have is to terminate my deal I must sign and send back the letter I received. The letter states I'm terminating my agreement and understand that the gap insurance finance is not covered in my right to cancel. I'm not sure about you but that sounds to me like they are backing me into a corner and forcing me to pay this even though it's not stated in my contract?

Back to my original question, sorry. The letter was dated 29/07 and my car payment was taken out on 01/08. As this was not included in their calculations would I be able to do an indemnity claim for this and would it affect my credit rating?

As I've also paid over the 50% of my credit, as stated in my contract, would I also be able to claim back at least 2 payments prior to my payment that was taken on 01/08? I would still have paid over the 50% of the total finance but I'm worried that this will affect my credit rating if I do this.

Sorry for the long explaination. I'm really starting to worry about my current situation as I have already put a deposit down on another car. Again this was because I was advised by a dealer that I would have 'no problems' to exercise my right to cancel my car finance.

Thank you very much for taking time out to read my question.
Carl

jonesMUFCforever

On what basis are you claiming an indemnity?
Is it a bank error?
Is it a company error?
Was the wrong amount taken? or on the wrong date?

If no you are clutching at straws IMO you can't make an indemnity claim.

LuckyBoyCarl

The payment made on 01/08 was not included in my termination letter. Therefore as I am terminating then that payment is not required.

molerat

To terminate the finance you do not have to sign anything they present you with and the general advice is not to. Until you have terminated and handed the car back all payments must be kept up to date. You are able to terminate without further payment any time after 50% is paid but you are required to pay any amounts that become due after the 50% point is reached until you return the car. Generally all added insurances etc are separate and have their own cancellation criteria.

LuckyBoyCarl

Thanks for your reply molerat.

I'd understand but I didn't get any separate terms and conditions for the insurance finance. It doesn't state it anywhere in the contract that I don't have a right to cancel that too.

As for the cancellation of the car finance, they stated I had to sign something?

Fergie76

How do I voluntarily terminate my PCP or HP?

There are a few problems that people run into when trying to exercise their termination rights.
Firstly, the finance companies and car manufacturers hate voluntary termination and would prefer that the clause be removed from the law, so they will not be interested in helping you one little bit. Usually, they will try and drag the process out as long as possible and try to make you do a lot of running around, as they are still charging you until the termination is exercised. Luckily, there are some good resources around like this one from LegalBeagles, which contains a template letter to send to your finance company. Be very clear in your language and do not get sidetracked by anything not related. You don’t have to sign forms or other documentation; simply send them your letter (e-mail is acceptable but recorded delivery is better) and stick to your guns.


http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

LuckyBoyCarl

I'd read that earlier, Fergie76.

I didn't know for sure that it definitely was the case