Car Dealer flipped finance without consent?

mediacomplaints · 19 July 2018 at 12:10AM

Car Dealer flipped finance without consent?

Hello folks got a weird question, here goes, wife bought used ASX from a main dealer, and she got car finance no probs all agreed with Black Horse in principle but not signed for!

Roll on a few days she picked up her new toy and I said that was strange I dont think you signed for the finance.

Roll on a few days more and the dealer called asking us to contact Black Horse (dealer said dont tell them you already have the car) we said OK and did right awa, wife phoned and gave the info they wanted and they said OK thats the Finance in place we will contact you soon although we have a baccklog to process we never thought nothing of it this was on the 15th June 18.

This afternoon my wife was on her online account and monies was taking out of her account without her consent from the dealers own finance company of which one, she was not told about two, did not ask for it, three got zero paperwork or notice of the payments and she never signed for it, I thought I was a consumer wizz kid but I am stumped with this.

1/ was this fraud?
2/ If she never applied and never signed for it through this company is the finance side of the contract void?
3/ has she any chance of getting monies paid refunded as there was no months notice period given?
4/ is there any recourse open to her going forward?
5/credit checks/files might have been applied without consent, what can happen with that, my wife is megga upset by this am just amazed one can get finance without consent from a third party?

Contacted the Scottish car dealer this evening spoke to an after sales director who stated it sounded really dodgy, we all agree on that but whats the upshot of it all is the contract terminated and has to start again because how can one get car finance without the borrower singing for it?

All very strange and for what purpose any guys got a crystal ball?

Kind regards
mediacomplaints.co.uk

System · 19 July 2018 at 6:38AM

2/ If she never applied and never signed for it through this company is the finance side of the contract void?
3/ has she any chance of getting monies paid refunded as there was no months notice period given?
4/ is there any recourse open to her going forward?

Well given she still has the car then if the finance is void how does she intend to pay for it? Unless she hands the car back why should she get a refund?

mediacomplaints · 19 July 2018 at 9:17AM

Good morning you are correct, she still wants her car but as an implementation officer in a very large council shes not very happy of the thought of someone porting her personal information to another product without her consent or permission.

The point is here my wife is worried that the car salesman has made a pigs ear of her excellent credit file by making mulitple and totally unauthorised finance searches just to get a sale through, why did they go elsewhere when it was already approved and ready to go, we have been alreted that it could have been because she drove away from the dealership without payment in place, thats not my wifes fault and still no paper-work from the new finance company thats not legal surely?

Breaches of the new GDPR has fines of over 1 million pounds and they are looking for companies to make a prime example of?

MEM62 · 19 July 2018 at 9:19AM

Tarambor wrote: »

Well given she still has the car then if the finance is void how does she intend to pay for it?

I would say that is the dealer's problem. The OP's OH agreed a finance package. The dealer has then put a different package in place without any agreement. I would suggest that the money taken from her account be reported as an unauthorised transaction (assuming, of course, that she did not sign a DD or other payment authority) and she then asks the dealer what they propose to do.

[Deleted User] · 19 July 2018 at 9:33AM

mediacomplaints wrote: »

Breaches of the new GDPR has fines of over 1 million pounds and they are looking for companies to make a prime example of?

Not currently, no.

mediacomplaints · 19 July 2018 at 9:42AM

Good morning MEM62 thats what we told the after sales director last night and he certainly agreed to a refund right away but and its a big but if theres a carry on and she needs to get finance in place by another means will all these credit searches put her at a disadvantage in securing a good finance deal through no fault of her own?

She singned no DD or mandates not even to black horse/TSB she did however agree to the terms offered verbally and gave her bank details but we thought that was to black horse and contact was made with them after she drove away so to speak!

My wife was over the moon with black horse she has dealt with them before but she knows nothing at all about the finance company has has just taken payment without permission, although the payment is close to the agreed montly payment we have no clue to the terms or length of the new said agreements and it cant be an agreement without both parties giving consent?

stevenhp1987 · 19 July 2018 at 10:11AM

I'd suggest picking up the phone and speaking to the finance company who took funds from your account demanding answers.

I'd also file a formal complaint with them right away.

I'd also file a formal complaint with the dealer.

If you are 100% sure she didn't sign anything, I'd also do a Direct Debit indemnity claim with the bank.

If she didn't sign anything, or agree to anything, then the dealer has committed fraud and should be prosecuted.

If she agreed verbally on the phone, then it all depends on what was said. Ask for a Subject Access Request with the finance company asking for all information, including any phone calls.

Also check the credit report via Noddle (CallCredit), ClearScore (Equifax), MSE Credit Club (Experian). If there are unauthorised searches or accounts, raise a dispute.

bengalknights · 19 July 2018 at 10:46AM

Also have you checked your credit file on noddle/clearscore/mse for searches?

mediacomplaints · 19 July 2018 at 11:09AM

Fantastic info thank you Steven!

No none of the above was done, there was no contact phone or otherwise she only noticed the the DD amonunt taken out on the 18th yesterday and noticed it was 1/ Not Black Horse and 2/ Shogun Finance,

Only then did she start to panic because we had no idea who shogun finance was (ok there was a clue in the name) We think the sales/dealer did what they did because she drove away with the car without the black horse paperwork being completed and it seems now they used their own finance company to pay the dealerships debt without telling my wife anything all, so it might indeed be fraud! OMG.

My wife is ex Royal Navy there is no way she would not help the dealership if they came to her and said oh we have made a mistake and we might have to re-jig things around a bit but instead decides to by pass all that and basically cover it all up.

Thanks guys! Will keep you posted on all developments.

Nearlyold · 19 July 2018 at 12:41PM

Black Horse and Shogun Finance are both part of the Lloyds Banking Group. Perhaps that has given rise to some confusion twixt your selves and the Dealership. If its any consolation the salesman who released the car to you without any finance in place will be in deep trouble, I have known them sacked for that or at the very least given a written warning.

mediacomplaints · 19 July 2018 at 4:11PM

@Nearlyold thank you for the info we never knew that, either way the the dealership is not speaking to us today and if both Fiaance packages was similar I take it they would still need to have seperate proposal forms?

Would that still be fraud?

We now think (in our own minds) that the wife drove off on the 12th of june with no finance in place although the sales asked all the right questions for Black Horse no forms were ever presented for her to sign 4 days later (amazingly) she got her new logbook from the DVLA and the day before the said salesman asked us call black horse not shogun which she did right away.

My wife has had no paperwork from eith branch, we have not seen the terms and conditions or been given the 14 day cooling off period and now the first DD has been taken without knowing it was going to happen!

The really strange thing thats new is the DD that was taken has a 9 digit number that we have been told is normally the agreement ref but when we try the shogun login its not valid and we cant access it?

Should she go direct to TSB to find out what their agents have done or does anyone know if they can port a finance package internal or not without it being signed for?

Car Dealer flipped finance without consent?

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