Finance Problem

jeffkenny

I'd appreciate helpful answers rather than judgmental ones please. My daughter is 25, (doesn't live at home) and has been diagnosed as being bipolar since she was 19. Last January, whilst suspended from work pending an investigation into an incident of gross misconduct, she was offered finance for a second hand car from a dealer. She explained to the person on the phone about her situation, that she was suspended from work and likely to be sacked as a result and that she had mental health issues. Despite this, she was told these things were not a problem and subsequently, following a meeting at the car dealer's to look at cars and make the application, she was given £7.5k car loan at 29.25%!


Anyway, she subsequently lost her job in July, as expected, and due to her sacking, she has had difficulty in finding regular work and has been doing sporadic cleaning and bar work etc. to make ends meet and has obviously been struggling to pay the £260 repayments each month. She is currently three months behind. The car itself has been nothing but trouble, firstly the alternator fell apart but mainly the issues have been with the steering and brakes. The car is now off the road as the front brake discs seem to have started to crumble away, for want of a better description.


Now, I hadn't taken much notice of the car until recently when she told me about the latest brake issues and the fact that she's being threatened with repossession. I spotted that the gap between the driver's door and the front wing wasn't right and upon lifting the bonnet, it became obvious, (paint overspray, pattern part replacement wing) that the car had been involved in an accident at some point before my daughter bought it. She hasn't yet raised this with the finance company.


So now, due to the outstanding payments, she has been offered two options by the finance company; either it will be repossessed and she will owe part of the outstanding debt, approximately £4,500 or she can voluntarily hand back the car and owe approximately £3,750. I appreciate she has gotten herself into this mess but I believe that firstly she should never have been offered finance due to her employment situation and mental health and thus the finance package was mis-sold and secondly, she has been sold a vehicle by a dealer that has been involved in an accident (which I believe contributed to the list of faults) without being informed, so does she have a claim against the finance company for this? In short, is there any way that she can hand back the car and not have an outstanding debt?

IAmWales

I find it difficult to believe she informed the salesman of her suspension and her bipolar diagnosis. What evidence does she have of this conversation? Why was she looking for a new car when she knew she was losing her job, what did you say when she showed you her new car?

What has the dealer said about the faults, when did she first report them?

marliepanda

Unlikely. Are you able to prove that your daughter was clear about her financial and emotional health at the time? How did the dealer even get her number/why was she talking to a car dealer whilst potentially unemployed?

jeffkenny

Ok, maybe nobody read the first line where I said that, "I'd appreciate helpful answers rather than judgmental ones".


My daughter isn't looking for a way out of paying what she owes, despite all I have taught her over the years, she has made a financial mistake, (haven't most people at some point?) and she's prepared to pay for it. She's a grown adult and not a child.


However, I believe that she has been sold a car with a dubious "history" that she was unaware of and I simply want to know if she has a claim against the finance company, similar to a Section 75 claim with credit card issuers.


Again, please, I'd appreciate helpful answers and NOT judgmental ones.

jeffkenny

IAmWales wrote: »

I find it difficult to believe she informed the salesman of her suspension and her bipolar diagnosis. What evidence does she have of this conversation? Why was she looking for a new car when she knew she was losing her job, what did you say when she showed you her new car?

What has the dealer said about the faults, when did she first report them?

You find it hard to believe that a salesman might bend the rules to earn commission? Really???


She was looking for a new car despite knowing she would probably lose her job, because her old one died on her and she was stupid. How does you knowing that help me in any way?


Thanks for your post but as I said, I'd appreciate helpful answers rather than judgmental ones.

wealdroam

jeffkenny wrote: »

However, I believe that she has been sold a car with a dubious "history" that she was unaware of and I simply want to know if she has a claim against the finance company, similar to a Section 75 claim with credit card issuers.

If that's the only question you want answering then what is all that extra information in your original post there for?

Anyway, back to the question you are now asking...

Quite simply, if the finance was taken out specifically for the purpose of buying this car, and it wasn't a Hire Purchase Agreement, then Section 75 of The Consumer Credit Act applies.

This is explained in MSE's Section 75 article, where it says:

Section 75 applies to most, but not all, credit card agreements. Credit cards are the main area covered, but the law also applies to store cards, store instalment credit and some car finance agreements (though not hire purchase).

jeffkenny

marliepanda wrote: »

Unlikely. Are you able to prove that your daughter was clear about her financial and emotional health at the time? How did the dealer even get her number/why was she talking to a car dealer whilst potentially unemployed?

Difficult to prove, as it was a face to face meeting at a second hand car dealership. She had made a few calls to car dealers as her old car had just given up the ghost and was being hopeful (and a bit stupid) more than anything. She tells me she was upfront about her situation and everyone she spoke to told her they couldn't help her, but this guy said he probably could, despite her situation.


That is all rather irrelevant to be fair, as it is pretty much her word against theirs but because of the undisclosed history of the car, I'm simply trying to find out if she might have a case against the finance company for faulty goods, similar to a Section 75 claim against a credit card company. And if so, how would she go about it?

mije1983

If you post on an internet forum, you can't filter out what people put if it isn't to your liking.

If all you were after was advice on a faulty car then information about your daughters mental health and employment status wasn't required and muddied the waters.


Anyway back on topic, has she spoken to the dealer about the car? What have they said?

jeffkenny

wealdroam wrote: »

If that's the only question you want answering then what is all that extra information in your original post there for?

Anyway, back to the question you are now asking...

Quite simply, if the finance was taken out specifically for the purpose of buying this car, and it wasn't a Hire Purchase Agreement, then Section 75 of The Consumer Credit Act applies.

This is explained in MSE's Section 75 article, where it says:

Thanks for the info, but it is a Hire Purchase Agreement. The "extra info" is there as a full explanation of her situation. Although she made the calls to try and source a new car of her own free will, I happen to believe that she was taken advantage of in order for the dealer to make a sale and earn commission. Proving it might be another thing, but people with bi-polar tend to make risky financial decisions when they are "up" that you or I would not make.

jeffkenny

mije1983 wrote: »

If you post on an internet forum, you can't filter out what people put if it isn't to your liking.

If all you were after was advice on a faulty car then information about your daughters mental health and employment status wasn't required and muddied the waters.


Anyway back on topic, has she spoken to the dealer about the car? What have they said?

I appreciate I can't control comments left by trolls but how does judging other people's poor financial decisions help? I've been a member of MSE for ten years and always regarded the forum, and the site in general, as one that is used by helpful people and the majority of posts I've ever read are usually just that. Quite why people on here want to have a personal dig before they offer any advice is beyond me, especially as I asked contributors not to be judgemental. My daughter has made a silly financial mistake and I'm trying to find some help for her. Why is there a need for personal comments on a site like this, which is supposed to be about helping people, not slating them!


Anyway, rant over.... the dealer isn't interested and claims not to have any idea about and accidents prior to my daughter owning the vehicle. I find this hard to believe, as I am no expert and I spotted the replacement wing. I would guess she would have a claim against the finance company who sold her the Hire Purchase?

jeffkenny

Moneyineptitude wrote: »

So what you are saying is don't post to your thread unless we agree with you? :eek:

If you didn't want comments about your daughter's (irrelevant) health condition, then why make mention of it?

It's not about agreeing with me, it's about responding to my query rather than making judgemental comments. How are they helpful? How do they answer my questions? And her health condition isn't irrelevant if the finance company had full knowledge of the facts and chose to "overlook" them. That makes it mis-sold I would say but I'm no expert, hence the post asking for help!