Canceling a credit agreement

pollyjoke

Hi,
Can you help. I recently (Sun 30th Sept) part ex my car with CarCraft for another vehicle. I have issues with their selling techniques of which i will share at a later date. For now i urgently need to cancel the credit agreement which has atronomical interest now that i have taken the time to read the small print.

Do i have the right to cancel this credit agreement before any payments are made? and if so how long have i got? I have applied for a much cheaper £5,000 loan to pay it off. There is no mention at all on the documentatioon regarding cancellation.

Lookin forward to a responce. many thanks

CLAPTON

If you signed the documents in the car dealers office them there is no 'legal' cooling off period.
So unless they let you cancel or its in the T&Cs then your only option is to get a settlement figure which for an ordinary loan should be a maximum of about two month interest.
Hopefully you didn't sign up for PPI.

pollyjoke

Thanks Clapton. I didnt sign up for PPI. I have just read on my agreement 'You have no right to cancel this agreement' Damn it! However it does state current fees on letters sent are DD's not set up/cancelleation/return - £30. I guess its worth a shot.

CLAPTON

What does the agreement say about early settlement?

pollyjoke

It states: The Consumer act also gives you a number of rights- you can settle this agreement at anytime by giving notice in writing and paying off the amount you owe under the agreement. If i exercised my right to 'discharge my indebtedness' early, based on Total amount of credit of £1000 (its actually £5095) it would be £933.61 when a 1/4 of the agreement term has elapsed.

What does tht mean Clayton? is it £933.61 to repay for every thousand borrowed?

CLAPTON

Under the CCA they should provide examples of 1/4 , 1/2 amd 3/4 of the way through the loan. and yes it means that for every £1000 you borrowed you have to repay 933 if you settle the loan after 1/4 of the period.

So unless they agreee to cancel the loan then you need to ask for a settlement figure.... it shouldn't be too much more than your borrowed.