Missold car finance?

neilmcl

Johnsta0419 wrote: »

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.

This makes a difference. As it's not a finance agreement as such rather it's a loan then you have no rights to VT the agreement. I am surprised though that you have not the option to hand back the car. How much is the final payment.

As the car is yours you may be able to sell it to pay off the final instalment.

bazzyb

As above, you have no right to return the vehicle as it is an unsecured loan. This should have been made clear to you by the salesperson, so you could certainly make a complaint although I'm not sure what the outcome would be.

As suggested above your best option may be to sell the car privately and use that to settle the balloon payment, or if you want to keep the car instead you could look to refinance the balloon element. Note that if you are looking to sell privately, whilst the loan is not secures against the vehicle Barclays do tend to register an interest in it on the HPI register, so it would be worth checking this and ask them to remove the marker if applicable.

Johnsta0419

The final payment is about £4800. I've just done an online valuation and it said the car is worth £3300 so we will have to sell it and make up the difference.

It's not ideal but it sound like it may be our only option.

Thanks to everyone who has helped, it is much appreciated.

Johnsta0419

Thanks Bazzyb, I will make a complaint and see what happens..

I will update the thread if I get a favourable response. I'm not holding my breath though.

tonyh66

can you not get a loan for £4800 to settle the finance, the monthly payments you make at the minute should cover it. Phone Barclays and see if you can re finance the final payment.
Selling the car and making up the shortfall means you are paying £1500 out of your pocket and will have no car...

Johnsta0419

Thanks for the advice tonyh66.

We've had a couple of kids since 2014 so need a bigger car now anyway. We will probably have to clear some of the finance by selling the car and pay the rest out of the budget for the new car.

We've spoken to a manager at Chapelhouse, he said that Barclays do not offer PCP but he will send someone an email and get back to us.

bazzyb

Johnsta0419 wrote: »

We've spoken to a manager at Chapelhouse, he said that Barclays do not offer PCP

Rubbish. https://www.barclayspartnerfinance.com/business/financeproducts

neilmcl

Johnsta0419 wrote: »

Thanks for the advice tonyh66.

We've had a couple of kids since 2014 so need a bigger car now anyway. We will probably have to clear some of the finance by selling the car and pay the rest out of the budget for the new car.

We've spoken to a manager at Chapelhouse, he said that Barclays do not offer PCP but he will send someone an email and get back to us.

If you're planning on selling it then do an HPI check on it first. As mentioned earlier, sometimes lenders will put a marker against the car even though they shouldn't really as it's an unsecured loan. If there is then you'll need to contact Barclays finance to remove it otherwise you may have issues selling the car if people think there's a loan or finance against it.

Ectophile

How can they claim it's an unsecured loan, then put a marker against the car? Either the loan is secured on the car or it isn't.

Johnsta0419

Thanks neilmcl. I will check that with Barclays.

The manager called us back and said sorry for potentially mis-selling the finance, however, directed us to their compliance manager.