mis-sold car loan

spsdjone

Earlier today i went to purchase a car on finance with a company that uses black horse finance. on enquiring i was told that they could do a rate of 5.5% so i decided to go ahead with this. when the application went through it had to go to the underwriters who came back saying they could only do it at 9.4%. i still decided to go ahead with this and the saleperson went through the application and did the whole application on the computer with me digitally signing the agreement. when leaving i had to ask if i could have a copy of the agreement as i was a little sceptical at the amount per month that was being charged. On the agreement this stated 16.65% and when i questioned this the dealer said that it was to do with the arrangment costs and then showed me the computer screen that said 9.4%. As they were closing at 5 i decided to get home and check this through and it is indeed completely wrong and the apr is 19.9% so i have been completely mis-sold the loan. As they are closed and black horse also closed until tomorrow, can anyone clarify as to where i stand on this. my girlfriend was also with me as we will be paying this jointly and the dealer specifically said 9.4% as he was on the phone to the underwriters when we were there. needless to say i am very very annoyed by this and im sure black horse will be very interested to now that someone accredit is behaving so unscrupulously. Any advice is appreciated.

standupguy

What a carry on!

There will be probably BE an arrangement fee of some kind and also other fees of spurious names added on.

Its like the mortgages - they pull you in with a promise of low rates then hit you with large admin fees which then pushes up the real APR.

If your loan is smaller and/or the loan period is shorter then the fees have a greater effect on the apr.

I would contact the Finance Company first thing in the morning and tell them you have been misled and wish to cancel the loan - they should do this with no issues.

Then you need to speak top the dealer - if you still want the car you need to sort out your own loan with a direct lender or alternatively tell them you are cancelling the whole deal because you have been misled.

It should all work out ok

spsdjone

the loan rate was supposed to be 9.4% which would have given an apr of around 10%.
the admin fees are broken down and added to the loan then divided between the payments which amounts to a few quid per month.
The guy simply lied and that is what i am looking into. As black horse have approved them to act as brokers for them, they surely have to adhere to normal practices in the financial industry which is absolute transparency. Anything else and they have to be breaking the law which is what i need advice for. Will be some angry calls being made tomorrow!!

blue_haddock

To me it sounds like he has quoted you 9.4% flat rate which is standard car trade terms. The real world APR is much higher