Car dealership acted as broker

d**

Hi, I am looking to make a claim and I am just trying to understand the claim that I would have for my individual circumstances.. the car dealership acted as the broker because when I applied for a car loan via them I was declined due to having a poor credit rating. The dealership then said it’s ok we will offer you a loan and we won’t charge interest but you will pay a higher price for the vehicle overall. I did not have a job at the time and agreed, I struggled to keep up with the payments and ultimately defaulted and received a CCj. The dealership ignored the “affordability” I am unsure what I am claiming for against them as there was no interest so I cannot claim that back.. I was charged extra charges and had the court costs of the CCJ to pay (this debt is now satisfied) thank you in anticipation of any guidance on how to progress (I have an email from the dealership as I emailed them this week and they have acknowledged that they acted as the lender because I had “poor credit” 

MyRealNameToo

A poor credit rating is not the same as a loan being unaffordable. You can have a lot of money and just be bad at paying and get a poor credit rating. 

So how much was the uplift on this interest free loan? Both in absolute terms and as a proportion of the original agreed price for the vehicle?

When was this? 

born_again

d** said:

Hi, I am looking to make a claim and I am just trying to understand the claim that I would have for my individual circumstances.. the car dealership acted as the broker because when I applied for a car loan via them I was declined due to having a poor credit rating. The dealership then said it’s ok we will offer you a loan and we won’t charge interest but you will pay a higher price for the vehicle overall. I did not have a job at the time and agreed, I struggled to keep up with the payments and ultimately defaulted and received a CCj. The dealership ignored the “affordability” I am unsure what I am claiming for against them as there was no interest so I cannot claim that back.. I was charged extra charges and had the court costs of the CCJ to pay (this debt is now satisfied) thank you in anticipation of any guidance on how to progress (I have an email from the dealership as I emailed them this week and they have acknowledged that they acted as the lender because I had “poor credit” 

So are the dealer registered with FCA for providing loans?

d**

Good question and yes they were but are not any more registered with them.. although they remain in business - the “commission” and the “interest” were included in the total loan - this was not written down - although this week they have acknowledged I failed a credit  check with their broker and they say this was why they offered me the loan themselves 

d**

The loan was unaffordable as I was not employed - and failing a credit check would be a red flag to my ability to pay..  - I cannot remember the uplift.. and have asked for the original loan agreement - it was around 2015 - I am unsure that I do have a claim as I paid no additional costs - until the CCJ which I did then 

Grey_Critic

But who are you going to claim from? Current situation is a claim against the Finance Companies who operated in effect a cartel with the dealers.

You failed a credit check and the dealer made you an offer - How much was the car and what were the repayments ?(that you actually defaulted on) 

sheslookinhot

Did you willingly agree to the offer to get you into a car by the dealer ?  Are you suggesting the dealer is at fault because of your inability to manage your finances ? Does the dealer have a record of your income and outgoings ?

d**

sheslookinhot said:

Did you willingly agree to the offer to get you into a car by the dealer ?  Are you suggesting the dealer is at fault because of your inability to manage your finances ? Does the dealer have a record of your income and outgoings ?

The dealer scares as the financier and knew I could not afford the loan as they were aware of my financial situation but did not run an affordability check 

Ayr_Rage

d** said:

sheslookinhot said:

Did you willingly agree to the offer to get you into a car by the dealer ?  Are you suggesting the dealer is at fault because of your inability to manage your finances ? Does the dealer have a record of your income and outgoings ?

The dealer scares (?) as the financier and knew I could not afford the loan as they were aware of my financial situation but did not run an affordability check 

Which begs the question as to why you took out a loan when you knew it was unaffordable as you had no job.

I still don't quite understand what you are claiming, it certainly has nothing to do with the ongoing DCA fiasco as no third party commission was paid.

eschaton

Why were you out looking to buy a car if you knew you couldn’t afford one?