Mis Sold Car Loan

BenC1985

Hi All!
Okay, I know, I've been really stupid!

Basically, in November 2016 I applied for a loan for a car. My credit rating isn't great so the Apr was about 30%. I drove 150 miles to view the car and when I was there, the salesman offered to view other financial products to see if he could get me a better deal.

There was no cheaper products he could offer me but said if I got a relative to guarantor a loan for me he could reduce the payments and also get GAP insurance and extended warranty. I specifically asked the guy if it would be marked on my credit rating as I was hoping it would look positively on my credit rating when it was paid, he said it would. It was too good to turn down and my mum kindly agreed.

We went back a week later to sign the paper work. He gave my mum LOADS of paper work to sign and he summarised each of the documents. I had my 3 year old son with me who started to feel unwell and foolishly didn't look at the paperwork properly. I did however reconfirm that I wanted it to be reflected on my credit rating and he agreed that is the case.

The only thing I signed was the log book and the direct debit.

It turns out that the loan is only in my mum's name, but we have broken the terms of the loan because the car dealer put the car in my name. The terms and conditions state the car should be in the policy holders name and also insured by them.

I am going to make a complaint, however I don't know what I should expect the outcome to be. Also, as my mum has signed the paperwork, I don't know where I stand in terms of it being mis sold. The loan was essentially sold to me, she just signed for it.

I'm not trying to get anything out of it, I just want the loan to be in my name, but I'm worried they will change the interest or say it has to stay in my mum's name.

Any advise on this would be appreciated.

[Deleted User]

Your mother took out the loan, so she is responsible for it and it will appear in her files. This would have been apparent from the credit agreement she signed.

If you simply want to build credit history, get a credit card.

If you want the loan in your name, you will need to apply off one, then pay off your mother's loan. Be aware that if accepted, your rate will be based on your circumstances rather than hers, so may be at a higher or lower rate.

DCFC79

My first question is why drive 150 miles to get the car ? Where is it you live ?

What would you be basing the complaint on ?

macman

You haven't been mis-sold anything. As pointed out above, the loan is your mum's, not yours, and any claim of mis-selling must come from her.
Should you default on the loan, it will be her credit history that suffers, not yours.

BenC1985

Maybe the title of this has confused things.
I understand that my mum is responsible for the loan now. But I was told that the loan would be in my name, I haven't signed anything and it's me that has a complaint.
I was sold a car under the impression that the loan would be guarantor. I wouldn't have chosen that finance product if I had of been informed.
I am trying to build a credit history.

Should I be complaining about the sale of the car instead of the loan? As that's the only thing in my name.

I'm trying to find the paperwork for asset protection (GAP insurance) as this will be in my mum's name, however the car doesn't belong to her so I'm worried this policy is void too. Does anybody know how this works?

BenC1985

Sorry, I don't mean I wouldn't have chosen that finance product as i understand my mum 'chose' it. I mean I wouldn't have completed the sale of the car knowing what I know now.

Ron2017

You really should have read the documents. That would have told you everything you needed to know

PeacefulWaters

You got the car with a cheaper loan not in your name. Have I understood correctly?

Your complaint is you haven't got more expensive debt yourself?