Car finance chasing me for a debt I'm not responsible for

emilyann1993

I got a settlement figure quote for my previous car on 5/10/22 which was valid until 2/11/22. I sold my car to a dealership on 13/10/22, well before the quote was due to expire, to clear the finance on my settlement.
I later found out they didn't clear the finance until 4/11/22, as this was after the quote expired, BMW Financial services are not sending me threatening letter for another payment to be made. I rang them and said the car was sold to the dealer on 13/10/22 to make the payment and it's not my fault they made it late. They said it is my problem because the agreement is with myself. I am so stressed and upset. I am literally struggling so bad financially at the moment with Christmas and my recent energy bills, I literally don't have this payment and don't know why i should be forced to pay when it's out of my control the dealer paying it late. I contacted the dealer and they are blaming BMW saying they purposely process the payments late so they can get more money out of customers. I don't know what to do, it's seriously messing with my mental health 

MorningcoffeeIV

You're responsible for the debt. 

Make arrangements to pay it, in one go if you can, or as fast as possible if not.

Then send a complaint to the dealer asking them to cover your costs.

Herzlos

I don't think you're going to get the dealer to pay anything unless they gave you something to say when they'd pay it.

You'll save a lot of hassle if you can find a way to pay this remaining payment, because the cost of enforcement will cause it to skyrocket. You can then send the bill to the car dealer and see what happens though.

emilyann1993

So even though this is obviously the fault of either the finance company or the dealer it is my problem 😔 I'll have to put this on a credit card then. All i have is the sales invoice from the dealer dates 13/10/22 purchasing my car and the settlement figure that matched the quotation. I have had several settlement figures cleared in the past by car dealers and never experienced this issue before. I spoke to the salesman/owner of the dealer today and he was just laughing it off saying it always happens and its Bmws fault

Farfetch1

emilyann1993 said:

So even though this is obviously the fault of either the finance company or the dealer it is my problem 😔 I'll have to put this on a credit card then. All i have is the sales invoice from the dealer dates 13/10/22 purchasing my car and the settlement figure that matched the quotation. I have had several settlement figures cleared in the past by car dealers and never experienced this issue before. I spoke to the salesman/owner of the dealer today and he was just laughing it off saying it always happens and its Bmws fault

You are responsible for clearing the debt.

Unless you had some agreement with the dealer to clear the debt by a certain date (in writing) you have no one to lump this on and are just going to have to take it on the chin.

MorningcoffeeIV

emilyann1993 said:

I'll have to put this on a credit card then. 

They may not accept a credit card.

If they do, remember it will be treated as cash, with the associated fees and interest.

SusieT

Do you know what date the payment left the dealers bank account? IF what they are saying is possibly true and payment was nade in time but not processed by the finance company, then you might have a get out, otherwise you will need to make arrangement to pay it somehow.  

penners324

The are liable to pay you back.

Lodge a complaint with them. Threaten to sue if necessary.

Usually the agreement with dealer includes them clearing the finance.

What's left to pay? Should only be a small amount of interest anyway 

emilyann1993

Thanks all.. the dealer isn't interested in responding to my messages. I asked for evidence of the payment being sent before 4th and they just ignored me. The dealer isn't a massive dealership group or anything, just a one man band but has been trading very high end performance cars for the past couple of years with a seemingly excellent reputation so I'm disappointed it's even come to this. I dunno what it is about the motor trade industry treating customers like royalty until they're done with you.

emilyann1993

penners324 said:

The are liable to pay you back.

Lodge a complaint with them. Threaten to sue if necessary.

Usually the agreement with dealer includes them clearing the finance.

What's left to pay? Should only be a small amount of interest anyway 

£125, which would have been avoided if the settlement had been paid 2 days earlier

~Brock~

Is the dealer authorised by the FCA to offer finance as a broker?  Check the FCA register.  In the list of authorised activities you should see 'Credit Broking' and also 'Debt Adjusting'. 

Debt Adjusting in the context of motor dealers is the activity of managing or paying off someone's debt as part of a vehicle sale, and is itself a regulated activity. 

That therefore gives you the recourse to the Financial Ombudsman Service. 

If you see those permissions then do the following:

1. Pay the outstanding debt.  By doing that you are preventing the sum escalating if the following action is unsuccessful
2. Put your complaint in writing to the dealer.  Make it clear that you consider that there has been a failing on their part and set out what you require in response (i.e. a refund of the extra that you have had to pay).  Make it clear that you require a final response either way and that you will escalate to the FOS.
3. Give them 8 weeks to respond.  After 8 weeks (or sooner if they respond quicker) and assuming they have not agreed to settle then contact the FOS via their website and set out your complaint clearly and concisely.  Make it clear that your consider their failing to be within their jurisdiction based on the fact that debt adjusting is a regulated activity, as they may not initially be clear on this.
4. Sit back and wait for an outcome.  If they find in your favour the dealer will be compelled to comply with their requirements.

Please don't consider going down the court route.  It will cost you more than you stand to gain.  The FOS route is free.