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Money Barn - Providing Car loan without checks

Afternoon everyone,

I wanted some advice,  I purchased a car loan via a dealership a few years ago and I believe they financed me without doing the proper checks.

I had a car loan agreed with a company before I visited the car the car dealership to have a look at the car I wanted.  Upton choosing the car I was taken into the office and explained that I had finance in place as I would need to call them to get the ball moving,  the sales rep advised me that he could try with one of their finance providers as it maybe cheaper and left the room.  He came back a few mins later and advised me he could get the monthly payments down by £10, which I agreed to and when with their finance company.  I have been reading some information via Debt Camel and I believe the correct checks were not made to make sure I could afford the car, they did not ask for any proof of income, what other debts I had and just processed the finance.

I have written to moneybarn explaining this and I have asked them to remove the interest off the loan as I am struggling as they have not followed the correct guidelines.

Am i right? any advice would be welcoming.

Thank you. 
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Comments

  • ThisnotThat
    ThisnotThat Posts: 500 Forumite
    500 Posts Name Dropper
    Did you lie on your application form?  Have you always been struggling or is this because of a change in your circumstances?

    If you were credit checked then that may be all they need to do to verify affordability.
  • Grumpy_chap
    Grumpy_chap Posts: 17,013 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Presumably you are struggling by £10 per month less with the Dealer-arranged finance than if you had stuck to your original plan of using the loan you had agreed before visiting the Dealership?

    What information did they take before providing details of the loan? 
    What did that allow them to verify online to cover their checks?
  • Nothing was done online,  I did not fill anything out in regards to an application, they used to drivers licence as ID.  Also this was about 3 years ago now. Also a credit check does not show your goings 
  • ThisnotThat
    ThisnotThat Posts: 500 Forumite
    500 Posts Name Dropper
    Nothing was done online,  I did not fill anything out in regards to an application, they used to drivers licence as ID.  Also this was about 3 years ago now. Also a credit check does not show your goings 
    No, it doesn't but there are standard formulas to calculate people's outgoings.

    Presumably, you told them what you earned?  And this was truthful?

    You say you're struggling to pay it but is this a recent thing or have you always struggled?
  • No, been paying fine until pandemic, but I believe they didn't do a proper affordability check
  • macman
    macman Posts: 53,128 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    How much did they extend the loan term by to get the monthly payments down by a tenner? Did you not compare the actual APR and total cost, which are the only figures that matter?
    No free lunch, and no free laptop ;)
  • redpete
    redpete Posts: 4,705 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    No, been paying fine until pandemic, but I believe they didn't do a proper affordability check
    Do you expect them to anticipate the potential effects of a pandemic as part of their affordability check?
    loose does not rhyme with choose but lose does and is the word you meant to write.
  • Gycraig
    Gycraig Posts: 318 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    edited 8 June 2021 at 11:22AM
    There is no legal requirements to do an affordability check for a loan. Companies can choose to do it or choose not to do it, I have never done an affordability check personally for any purchase including a car they simply asked how much I earned. 

    I sell furniture and do credit checks every day we only ask for yearly income.

    Unless they have lent you a massive amount on a small wage I can’t see what more you can expect . 
  • Gycraig said:
    There is no legal requirements to do an affordability check for a loan. Companies can choose to do it or choose not to do it, I have never done an affordability check personally for any purchase including a car they simply asked how much I earned. 

    I sell furniture and do credit checks every day we only ask for yearly income.

    Unless they have lent you a massive amount on a small wage I can’t see what more you can expect . 
    The pay day loans complaint process based on the affordability (or rather, giving out unaffordable loans) is well established
    https://www.moneysavingexpert.com/reclaim/free-payday-loans-refunds/ 
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