Loan provider revokes loan after agreement is signed

pt6w

born_again said:

I can view my credit file with Experian using MSE' Credit Club. There are no public records (e.g., CCJs) linked to the account, no Cifas records, no late payments, and no defaults.

You need to go direct to CIFAS with a SAR to find out what they hold on you. 

born_again said:

I can view my credit file with Experian using MSE' Credit Club. There are no public records (e.g., CCJs) linked to the account, no Cifas records, no late payments, and no defaults.

You need to go direct to CIFAS with a SAR to find out what they hold on you. 

Thanks. I've done that today, but they advise up to 10 days for a response. Hopefully it will be processed quicker. 

Wonka_2

Pth80 said:

Wonka_2 said:

A very quick escalation there from a rejection to threats of legal action aren't necessarily 'normal' reactions so for clarity

1) Are the Garage and the Broker the same ? If not what's their relationship ?
2) Given the 'customisation' you talk is it a new car ? Something specialist or just mainstream and you're agreeing the order specification ?
3) Have you spoken to, rather than writing to, the lender or received any written confirmation from them of what the Broker has told you ? And aligned with that did you complete the application or did the Broker complete it on your behalf ?

1) The garage and the broker are not the same. The garage has been in direct contact with the lender as well as the broker. 

Seems a convoluted way of achieving finance - particularly if you've no credit issues

Presumably the garage are expecting money from the lender before they release the car to you - but is your contract for buying the car dependent on the finance or are you still contracted to the car even if you don't have the money from the finance company ?

Given the timings involved, and despite the feedback of CAB & your learned (ex) solicitor friend I'd be picking up the phone to the lender and asking them outright whether they have rescinded the agreement - at least then you know and can make alternative plans/take appropriate action. Also although you say you've looked at the T&C's is there anything specific for cooling off periods ?

Given the convoluted route to finance how legitimate are the lender/broker ?

Pth80

born_again said:

I can view my credit file with Experian using MSE' Credit Club. There are no public records (e.g., CCJs) linked to the account, no Cifas records, no late payments, and no defaults.

You need to go direct to CIFAS with a SAR to find out what they hold on you. 

Thanks. I've done that today. It's up to 10 days processing though. Hopefully I get an answer back sooner. I can't imagine there's anything on there though. I've only been turned down for credit once in around 5 years (a weird case where I was investigating buying a computer screen on an interest free credit deal). Every other application has been successful and the accounts have been well managed. 

Pth80

Wonka_2 said:

Pth80 said:

Wonka_2 said:

A very quick escalation there from a rejection to threats of legal action aren't necessarily 'normal' reactions so for clarity

1) Are the Garage and the Broker the same ? If not what's their relationship ?
2) Given the 'customisation' you talk is it a new car ? Something specialist or just mainstream and you're agreeing the order specification ?
3) Have you spoken to, rather than writing to, the lender or received any written confirmation from them of what the Broker has told you ? And aligned with that did you complete the application or did the Broker complete it on your behalf ?

1) The garage and the broker are not the same. The garage has been in direct contact with the lender as well as the broker. 

Seems a convoluted way of achieving finance - particularly if you've no credit issues

Presumably the garage are expecting money from the lender before they release the car to you - but is your contract for buying the car dependent on the finance or are you still contracted to the car even if you don't have the money from the finance company ?

Given the timings involved, and despite the feedback of CAB & your learned (ex) solicitor friend I'd be picking up the phone to the lender and asking them outright whether they have rescinded the agreement - at least then you know and can make alternative plans/take appropriate action. Also although you say you've looked at the T&C's is there anything specific for cooling off periods ?

Given the convoluted route to finance how legitimate are the lender/broker ?

Is it? I'm not in a position to say. I've purchased cars in the past, but I took out conventional loans and bought them outright. Those loans were paid off without any hiccups.

The chap at the CAB explained that the lender would normally deal with the garage directly, as did the broker, so it surprises me that you suggest I've embarked on a convoluted process. I thought I was getting a good service whereby all the hassle was taken care of and I would simply collect the car when it was ready. 

The alternative process that I'm aware of is that you go to a garage, choose a car, and the garage arranges finance on your behalf. I've never done it, but I obviously know that it can be done. In this case, I identified the car I wanted and thought, internet age and all, "I'll use a comparison site to find the best deal". The broker I went with came back top of the list. 

Both the broker and the lender are very well known. I've obviously sought to conceal some details because I want to give them the benefit of the doubt until the matter is resolved one way or another, but they have massive name recognition - the equivalent of high street names. Neither are obscure or considered to be dodgy/high-risk loan providers in any way. 

pt6w

Wonka_2 said:

Pth80 said:

Wonka_2 said:

A very quick escalation there from a rejection to threats of legal action aren't necessarily 'normal' reactions so for clarity

1) Are the Garage and the Broker the same ? If not what's their relationship ?
2) Given the 'customisation' you talk is it a new car ? Something specialist or just mainstream and you're agreeing the order specification ?
3) Have you spoken to, rather than writing to, the lender or received any written confirmation from them of what the Broker has told you ? And aligned with that did you complete the application or did the Broker complete it on your behalf ?

1) The garage and the broker are not the same. The garage has been in direct contact with the lender as well as the broker. 

Seems a convoluted way of achieving finance - particularly if you've no credit issues

Presumably the garage are expecting money from the lender before they release the car to you - but is your contract for buying the car dependent on the finance or are you still contracted to the car even if you don't have the money from the finance company ?

Given the timings involved, and despite the feedback of CAB & your learned (ex) solicitor friend I'd be picking up the phone to the lender and asking them outright whether they have rescinded the agreement - at least then you know and can make alternative plans/take appropriate action. Also although you say you've looked at the T&C's is there anything specific for cooling off periods ?

Given the convoluted route to finance how legitimate are the lender/broker ?

Apologies, I didn't answer your other questions.

I've yet to clarify my contractual position with the garage. I haven't explained the situation yet, because I'm hoping to resolve it or line up alternative finance if need be before I have to speak with them again. 

I've called the lender, but the person I've spoken to wasn't able to give me much information at all. They said that the agreement was pending. I asked for clarification, given that I have a signed agreement. They then said that an investigation had been opened by the underwriting team and that they would contact me in due course. In other words, I don't know yet if they have in fact rescinded the agreement, or if they are still proceeding as if it was still in the approval stages. I recognise it would have been prudent to have confirmed that the loan agreement had been terminated even after the broker insisted that it had. Lesson learned, hopefully.

Just to respond to your earlier point, I haven't explicitly threatened anyone with legal action. I've asked for clarification of what clause the lender was invoking to terminate the agreement, and that I would investigate the legality of their actions in the meantime. You might argue this is splitting hairs. I certainly didn't mean to threaten anyone and my email was polite and not aggressive. I'm obviously quite cross, but not because I might be refused a loan. No one is entitled to someone else's money - I understand that. I'm cross because of the way it's been handled, and because I'd been reassured that there were unlikely to be any issues when I consented to the hard search. I'm now facing the prospect of having back-to-back hard searches on my file, and the credit agencies warn of the consequences of this. That's obviously quite frustrating. It would be a different situation altogether if the lender had said from the outset, "we don't wish to lend to you", as they're perfectly entitled to do. However, they've entered into a contract, and I do think contracts should be honoured by all parties concerned unless both parties agree to extinguish them.

Jenni_D

Why are there two accounts both posting as if they are the same person?

lincroft1710

Jenni_D said:

Why are there two accounts both posting as if they are the same person?

I was thinking the same thing

Pth80

Jenni_D said:

Why are there two accounts both posting as if they are the same person?

Apologies for the confusion. I'm the same user. I initially signed up using one email address, but there was a delay in it being approved to post on the forums. I then signed up with my gmail account while on my work device because I was looking for some speedy feedback before the weekend. It was approved immediately. The other was then approved after a lengthy delay. I didn't realise I was signed on one ID on my personal device and another ID on my work device. The admins have brought this to my attention and will delete my other account. Thank you for bringing this to my attention.