Personal loan in someones name.

AThompson

Can a dealership take out a personal loan in somoenes name through vehicle finance to cover negative equity in a vehicle trade in deal without advising there is a personal loan.

DE_612183

any loans that get taken out in your name have to signed by you and the terms and conditions you have to agree to.

Have they forged your signature on something, or not explained it properly?

DE_612183

can you supply more details?

Value of trade in
Value of new car
Value of car finance
Value of personal loan
Additional deposit supplied by you

AThompson

Vehicle was traded in and we were given the final monthly payments, after a couple of days we checked with the old finance had their balance been paid in full, they said yes but not the personal loan! We were not aware we had a personal loan nothing had been explained and nothing pointed out just sign here here and here. On a hand held tablet.  This is a massive dealership chain. 

DE_612183

Ah, so this was for the old car that was traded in?

It could be that as part of the deal you were offered things like "scratch insurance" or "gap insurance" - I think in these cases this is treated as a personal loan NOT car finance - do the finance company tell you what the value of the loan was and what it covered?

AThompson

It’s not gap insurance or scratch insurance it’s a “ personal loan” apparently to cover the negative equity, the finance guy at the dealership didn’t point out a single thing about a personal loan to cover negative equity, not a thing, just put it all through without saying a word. 

DE_612183

Right ok, now thats a bit clearer - so you took your old car in and they offered you say £10k, but there was £12k outstanding on finance - so you have to have a new credit agreement for the £2k - it's can't be car finance as thats secured against the car ( which you no longer have ).

Did you buy a new car as well?