Missold car finance?

Johnsta0419

Hello all,

I have a predicament and would appreciate any advice.

My other half purchased a car from Chapelhouse in February 2014 and was advised that she could give the car back after four years or pay a final balance and keep it.

The four years are up in February this year so we contacted Chapelhouse to find out when we return the car and if we needed to do anything else.

Chapelhouse has now stated that we do not have the option to return the car and we must make the final payment.

I have reviewed the paperwork my wife received at the time and it does not mention that the final payment is optional. Therefore, it is reasonable to believe that we have to pay the final amount and keep the car.

As we always planned on returning the car, we are unable to make the final payment.

My question is whether complaining about the advice provided at the point of sale would be worth it. Ideally, we would like to return the car and not have to make the final payment as we were advised we could.

I know my wife should have read the contract before signing but she trusted that the information provided by the salesperson was correct.

In addition, the contract just states the final payment amount so it is unlikely she would have questioned if this was optional after already being told it was.

Thanks in advance.

lincroft1710

What proof is there that she was told she could return the car? You being present when the conversation took place would not be considered proof.

BoGoF

What type of finance agreement is it?

Johnsta0419

We have a document that states "Finance Type: Dealer Finance".

No evidence that they advised she could return the car other than her testament which is likely to be ignored.

I was not present during the sale but my wife told me what the salesperson advised on the day she agreed to the sale, I have no reason to disbelieve her.

It's frustrating but I am guessing that we don't have much choice without evidence of the face to face conversation that took place in February 2014.

I suppose the moral of the story is not to trust anything that comes out of a salespersons mouth.

BoGoF

Does it say anything about early settlement?

bazzyb

Johnsta0419 wrote: »

We have a document that states "Finance Type: Dealer Finance".

She should have a copy of the agreement and a copy of the pre contract information. Both of which should show the name of the lender, and the type of agreement ('dealer finance' doesn't give any indication as to what the agreement is).

Does she know who the lender is? Who does she make her direct debit payments to?

lincroft1710

Johnsta0419 wrote: »

I suppose the moral of the story is not to trust anything that comes out of a salespersons mouth.

The moral of the story is to check the paperwork before you sign, especially any clause which you are depending upon. Sadly many of us do not, so your wife shouldn't blame herself unduly.

Johnsta0419

It says we can repay the loan in full at anytime and they will charge us interest up to 30 days after the settlement date.

The payments are made to Barclays Finance. The documents do not state what type of finance product it is other than dealer finance.

To be honest, I don't think we would have queried the paperwork if we had checked it. The paperwork states that a final payment is due at the end of the agreement, it is likely that we would have believed this was optional as the salesperson advised. The paperwork does not state whether it is optional or compulsory.

bazzyb

Can you see the words 'conditional sale' or 'personal contract purchase' on the paperwork? These are two types of agreements Barclays Partner Finance commonly use for dealer finance. I'm not sure if you are actually looking at the agreement or just a summary the dealer gave you.

neilmcl

Regardless of what type of finance agreement you should be covered by the Consumer Credit Act so you will have the option on voluntary terminating the agreement. You need to speak to the finance co. not the dealer.

Johnsta0419

I can't see any of those words on the documents we have. We have a document explaining the terms of the loan from Barclays and an order form from Chapelhouse for the car.

The order form for the car states Dealer Finance. I've just noticed that the Barclays document states Fixed-sum loan agreement.