Question about Car Finance HCP with agreement secured against the house

Nearlyold

It will tell you normally at the top of the first page of the agreement, something along the lines of This is a Hire Purchase Agreement regulated under the Consumer Credit etc. If its non regulated it will tell you somewhere in the paperwork. Your loan will be regulated unless you signed a High Net Worth statement.

Thrugelmir

Nearlyold said:

Thrugelmir said:

Has anyone faced anything like this before? I believe it is a case of a product being miss sold and was not informed at the time of this being secured against the house.

Have they actually threatened repossession? Or simply put a charge on the property to secure the debt owed. If so, very much standard practice for significant sums of money. 

OP says they are not behind on payments.

In that case what's the issue? 

Debt recovery is at the behest of the creditor using the established legal options available. 

Nearlyold

Thrugelmir said:

Nearlyold said:

Thrugelmir said:

In that case what's the issue? 

Debt recovery is at the behest of the creditor using the established legal options available. 

Not sure - must be something serious as the OP has already complained to the lender and referred the complaint to FOS.

MovingForwards

nissanxtrail said:

Not behind on Car Finance payments and the car appears fine besides the usual services/MOT that it goes through annually, which they have passed w/o major faults. I am just concerned that I was not told at the beginning of the agreement and the form appears faulty. Wording says:
Missing or Late Payments:
If you fail to make any Repayment on time we will charge you interest on it at the Interest Rate and we may charge you fees. If we (B) end this agreement, you must return the goods to us and pay the amounts remaining. If you do not do so, we may bring legal proceedings and obtain an order to repossess your homr

Stupid b&at&rds, They have missed out a lot, it means:

We may start legal proceedings, if an agreement is not made before a hearing and if a judge finds in our favour at a hearing and you do not settle the court judgment we have enforcement options which include securing a charge on your home.

--------
Just keep up your payments and read T&C's before signing them, if you are not happy, do not sign anything and take legal advice!

molerat

Sounds like cheap scare tactics from a sub prime lender.  May as well have put "we may take your first born daughter and sell into slavery".

nissanxtrail

Thank you for contributing to the post. It has been most helpful. One question I had was a comment made above about informing your mortgage company that this HP is being secured against the property What does that mean? Do the Finance company need to let the mortgage company know about the HP? I was not a homeowner at the time of when the HP was agreed so looking for information on that part.

DrEskimo

I dont think it is secured on your home. It is secured on the car.
All that clause states is that if they recover the car due to non-payment (as it's secured on the car) and then there are outstanding fees, which you don't pay, then they may file legal proceedings to recover those fund from your estate.

This does not mean it is secured on your home.

Nearlyold

nissanxtrail said:

Thank you for contributing to the post. It has been most helpful. One question I had was a comment made above about informing your mortgage company that this HP is being secured against the property What does that mean? Do the Finance company need to let the mortgage company know about the HP? I was not a homeowner at the time of when the HP was agreed so looking for information on that part.

Nobody needs to do anything. If you didn't own a house when you took out the finance then your car finance rather obviously cannot possibly be secured on your house (even if you had owned a house at the time the Car finance would not have been secured on your house).

You are simply misunderstanding the clause you have read - ANY loan that you default on could potentially result in a charge being placed on your house by the lender if you fail to pay - that doesn't mean the loan is secured on your house.

I'm not sure what you expect the Ombudsman to do in respect of your complaint - you have a perfectly standard HP agreement secured on your car, exactly the same as millions of other Car HP agreements. The Ombudsman can't instruct the lender to not secure the loan on your house -  for the simple reason that it isn't secured on your house.

There is no miss selling and nothing really to complain about apart from perhaps some miss communication between you and the lender