Interest Free or not??

Aylesbury_Duck

https://forums.moneysavingexpert.com/discussion/comment/82049222#Comment_82049222

Ask them.

You've used the words "should", "meant" and "normally" to describe how the service plan is paid for, interest-free. If it were "must", your complaint would be valid. Is it?

The other thing here is whether you've been deliberately misled. I'm not convinced you were. If I bought a sofa tomorrow and paid for it with finance, and the final deal included a product care package that could be purchased separately but which wasn't offered that way, I don't see that anything unlawful has occurred.

Presumably there's a cooling off period for the finance deal? If you're still within it, can you cancel and take out the purchase finance only, buying the service plan separately?

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82049253#Comment_82049253

That link doesn't say the plan should or must be interest free, it just offers it for sale under those terms. That doesn't exclude other terms also being offered. You say you weren't told, but do EH have to make you aware? I don't think they do....

As noted above, make a complaint and see what they say but it does seem like you knowingly signed up to this and now you are trying to back out as you've realised you could have got a better deal.

born_again

If you go direct to EmAC it is interest free, but you did not you bundled the service plan in with the finance for the car which was @ 12.9%

Buyer beware, EH have not done anything wrong. Due to you wanting to add Service plan to the car finance 🤷‍♀️

flaneurs_lobster

Floor mats

I reckon with a bit of digging you could have found a supplier of mats that would have let you pay for them interest free over a year.

You chose not to do so but instead included the cost of mats from the dealer into the overall car finance deal.

QrizB

Thoughts?????

12.9% finance over 5 years seems a bit of a mickey take when personal loans are available from 5.9%. see the MSE article here.

A_Geordie

I think the OP might have a valid argument to make, and this is not too dissimilar to the discretionary commission arrangements (DCAs) that has resulted in dealers and lenders having to pay out compensation for mis-selling.

The lender could also be in breach of their FCA obligations and potentially liable to the OP for the dealer's actions. Lenders, have an active obligation to comply with the "Consumer Duty" principle which is designed to force lenders to proactively ensure that consumers achieve goods and services that consumers are treated fairly and achieve fair outcomes. In the car dealership/finance sphere, that means ensuring that the value added products and other services represent fair value, and customers are provided information about a range of suitable products so that the customer can make an informed decision.

The link here gives a summary of how the Consumer Duty principle applies the motor trade: https://www.fca.org.uk/publication/correspondence/consumer-duty-portfolio-letter-motor-finance-providers.pdf

By the same token, If sales advisors are fully aware that they have a product offering that can give a consumer better value but they are prioritising their commission over what the customer's valued needs and requirements by not presenting the alternative available option, I reckon there might be a case for unfair commercial practices in breach of the Digital Competition and Consumers Act 2024.

If I were the OP, I would look at a multi pronged approach by making a complaint to Evans Halshaw on the basis of a misleading action, whilst at the same time making a formal complaint to the lender for the same reasons but instead relying on the breach of the Consumer Duty principle. If the complaint is not successful, take the complaint to the Financial Ombudsman Service.

OP should gather all appropriate evidence if they haven't already before Evans Halshaw have a chance to change their website and try to argue that option never existed.

Ectophile

Regardless of whether it's legal or illegal, it's almost certainly against FCA rules for fair dealing with customers. Deliberately concealing an interest free option and signed you up to the same thing but with interest.

Sounds like it's time for a formal complaint to the credit company, that their broker (the car dealer) deliberately mislead you into paying interest when you didn't need to.

If they don't offer some refund, take it to the financial ombudsman.

GDB2222

https://forums.moneysavingexpert.com/discussion/comment/82049564#Comment_82049564

It’s hard to see an argument in favour of the dealer, except the rather weak one that the monthly payments for the service plan over 60 months are lower than over 26 months.

I’m still trying to get my head round an interest rate of about 13%.