Help Needed, Long-Term Finance Agreement Possibly Mis-Sold by Tool Company, Asking for advice

chilliredjcw

Hi all,

I’m looking for some advice and insight into a long-running finance issue I’ve uncovered with a well-known tool company. I’ve worked in the motor trade since I was a teenager and have been using their credit options (Extended Credit, EC, and Rolling Account, RA) since around 2011.

Between 2017 and 2019, my dealer at the time (now confirmed to be leaving the business) arranged a finance agreement where I’ve discovered some serious concerns:

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🔎 Key Issues Identified:

1. Hidden Debt (RA Rolled Into EC Agreement)

In 2017, my RA balance was wiped out with a “TARETURN” code, a term used internally. No tool was returned, but the amount (£915.30) seems to have been rolled into an EC agreement by inflating the prices of two tools, a thermal imager (received) and a tap and die set (never received).

→ VAT was charged on this item, meaning I paid tax on something I didn’t get.

→ We’re unsure if VAT was removed from the hidden RA debt, which would mean I also paid VAT twice.

2. Modified Agreement Abuse

Rather than creating new finance agreements, the company repeatedly issued modified credit agreements, each one “replacing” the last, even when the date it referenced had already been superseded by another.

→ In one case, a 2019 agreement claims to modify a 2018 agreement that had already been replaced in 2018.

→ These contracts appear system generated, so it raises questions about internal controls and contract legality.

3. Misuse of EC for Low Value Purchases

EC is usually intended for large, high value tool purchases. In my case, small items were being added via recontracting, which kept me tied into ongoing debt.

→ Purchases totalling £5,089.75 over a period led to nearly identical weekly payments, suggesting only interest was being repaid.

4. Interest Charges and APR Issues

Despite my improving credit over 8 plus years, my APR (24.9 percent) was never adjusted.

→ Previous contracts before the dealer switch had an APR of 0.93 percent, suggesting either mis-selling or a failure to assess affordability fairly.

5. Pushy Sales and Psychological Impact

The dealer often pressured me into purchases. I now recognise that I may have been using tool buying as a form of dopamine chasing during periods of poor mental health and possible undiagnosed ADHD.

→ When I once asked to reduce a payment, the response was, “No, ask the Mac man.”

6. Payments and Financial Impact

I’ve estimated that I’ve paid around £43,000 over the last 9 years. My EC balance remains at £6,000 today.

→ The system kept me in a perpetual debt cycle, despite regular payments of £400 to £500 per month.

7. Regulatory Concerns

I believe this situation breaches multiple FCA rules under CONC and possibly Section 140A of the Consumer Credit Act (unfair relationship).

I’ve also flagged:

Possible VAT mischarging

Lack of commission disclosure

Questionable enforceability of agreements due to flawed contract chains

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❓What I’m Looking For:

Has anyone experienced anything similar with finance through tool companies?

Does this look like a strong case for complaint and escalation?

Would this be best suited to a financial mis-selling solicitor?

Any recommendations for where I can go for support or potential no win no fee review?

I’ve already sent a query to the company’s compliance department and have all contracts, statements, and SAR data saved. I'd appreciate any insight, even just hearing if someone else has been through the same.

Thanks in advance!

DullGreyGuy

Was the finance covered by the Consumer Credit Act? If they were then there should be reference to it in the documents. 

I assume you are a sole trader and the tools were for business use?

chilliredjcw

DullGreyGuy said:

Was the finance covered by the Consumer Credit Act? If they were then there should be reference to it in the documents. 

I assume you are a sole trader and the tools were for business use?

Yes, the agreements were regulated by the Consumer Credit Act , it's stated on each contract. I'm not a sole trader and have always been an employed technician. The tools were for use in my job but not for running a business. Everything was taken out in my personal name, not under a company or trade status.

Hoenir

You've left it a very long time to raise very detailed accusations and timed it with the departure of the "dealer" from the business. Unless you've substantive documention to evidence some of your accusations. Then you are out of time I'd suggest. The Company has no legal requirement to retain documents over 6 years old.  For the very reason that meeting's get minuted. People's recollections of past events do get hazy , inaccurate and influenced by personal bias to find an outcome in their favour.  

chilliredjcw

Hoenir said:

You've left it a very long time to raise very detailed accusations and timed it with the departure of the "dealer" from the business. Unless you've substantive documention to evidence some of your accusations. Then you are out of time I'd suggest. The Company has no legal requirement to retain documents over 6 years old.  For the very reason that meeting's get minuted. People's recollections of past events do get hazy , inaccurate and influenced by personal bias to find an outcome in their favour.  

Thanks for the reply

I understand your concerns, but this isn’t based solely on memory. I submitted a full Subject Access Request covering the period in question and received contracts, account statements, and transaction logs directly from the finance company. These documents clearly show inconsistencies, including contracts referencing outdated agreements, unusually high APRs, hidden rollovers of previous debt into new agreements, and VAT charged on items that were never received

This isn’t just my word. I’ve spoken with others from around that time, including another tool dealer who operated in the area and is now with a different brand. He has confirmed the dealer's behaviour was widely known, and that many technicians were affected. That same dealer is now actively speaking to other technicians and is uncovering a pattern of mis-selling, pushy sales tactics, and a number of people left in significant tool debt

Also, just to clarify, this is not about a closed or historic agreement. The original contract from 2017 has been modified so many times that it is still running today. I am still trying to pay it off now. This is an active, ongoing agreement, not something from the distant past. That’s why I’ve chosen to address it properly

Nearlyold

Is this a  Mac Tools or Snap on  Franchise  type thing where a guy in a van comes round regularly and you buy from him and the credit facility is a bit like the old club catalogues?

Nearlyold

DullGreyGuy said:

Was the finance covered by the Consumer Credit Act? If they were then there should be reference to it in the documents. 

I assume you are a sole trader and the tools were for business use?

Just to clarify it's quite common in the motor trade for employed mechanics to buy, own and use their own tools.  Obviously this doesn't extend to big stuff like ramps lifts compressors etc

chilliredjcw

Nearlyold said:

Is this a  Mac Tools or Snap on  Franchise  type thing where a guy in a van comes round regularly and you buy from him and the credit facility is a bit like the old club catalogues?

Pretty much yes. So you have the rolling account which is funded by the dealer and usually non interest bearing and unregulated credit. Then you have the extended credit which is provided by snap on finance which is interest bearing, usually you would use the ec for higher value purchases like toolboxes and power tools.