Car Finance Problems

[mrwasp]

Hi All,

New here :-) and looking for a little help.

I took out car finance (HP) in 2009. Here are the facts:

• I used an online broker who faxed me the finance agreement to sign once I had passed the preliminary credit checking.
• When they faxed the agreement, 3 of the pages got stuck on their side and I only received part of the terms and conditions.
• I didn't realise this at the time and signed and faxed back an incomplete agreement.
• Once they received the agreement they released the funds to my garage and the car was delivered to me.

Moving on a few years I am now having trouble with the finance company (I wish to return and end the agreement). It was only at this point when checking the agreement to see where I stood legally that I realised that I was never sent the full contract terms.

The broker has admitted in writing that they made an error in 2009 and admit that I was not provided with the full terms of the agreement.

My questions is as follows:

There are 10 terms in total. I only have sections 7, 8, 9 and 10. Is my agreement unenforceable? Or even better is it void?

Bear in mind, the missing terms are contractual terms (how I must look after the vehicle etc etc) not prescribed terms (the prescribed terms are present on the first page of the fax).

I'm thinking this is more related to contract law rather than CCA Regulations???

Many thanks,

MrWasp

[ATW]

Re: Car Finance Problems

It's 2009 so covered by the amended CCA and less vulnereable to fatal attack. How long is left on it? Presumably not much and most of it is paid already. Are you in arrears and have you been served with any notices or threatened with legal action? Who is the finance with. Yes car credit had some badly drafted agreements around then although i think it was slightly earlier. Its best if you can let Niddy see the agreement or we will be guessing. If you authorise him to send it to me too i will have a quick look too.

[mrwasp]

Re: Car Finance Problems

Hi, thanks for your reply.

The trouble I'm having now is that 2 thirds of the agreement has been paid and I wish to send the car back as per HP terms. The finance company claim they terminated the agreement in 2011 due to 2 missed payments but I have nothing to say as such - no letters and my end of year statement for 2011 sets out my options if I wish to terminate. In addition, there's a termination fee of £75 which has never been applied to my account. So in my view, the agreement was never actually terminated, they just dont want the car back (car is worth £1000 but the balance is £3500) The finance company are trying to force me to surrender the car which will leave me with debt after auction.

So, when this came out in the open this year when attempting to return the car, that's when I noticed that the original terms were never supplied. Hence I'm relying on un-enforceability as my first line of defence in order to get out of being forced to surrender.

Make sense??

Cheers,

MrWasp

[Never-In-Doubt]

Re: Car Finance Problems

Please mail me your agreement - webmaster@all-about-debt.co.uk

Then we'll take a look. Both myself and Andrew (solicitor) are DPA registered so please don't blank bit's out - we'll then clarify what your options are

[mrwasp]

Re: Car Finance Problems

Many thanks, just emailed it to you

[Never-In-Doubt]

Re: Car Finance Problems

Ok just leaving work so give me a couple of hours...... Cheers

[SXGuy]

Re: Car Finance Problems

Some agreements have a point where you can surrender the car after you have repaid x amount of finance, and pay a fee. Esstenally, handing back the keys and paying a 1 off settlement.

Is this missing from the terms you do have, or do you have this? did this ever form part of the full terms, and have you asked them to supply you a full set?

There is a big difference between handing back the keys and paying an exit fee as such, compared to surrendering the vehicle and having the balance left to pay.

if it was me i would be asking to get the full set of terms from them. It will not alter your issues as to what has happend, but you may find areas to help you that you didnt know about previously due to lack of terms.

[mrwasp]

Re: Car Finance Problems

Thanks SXGuy, there is an option to hand back the keys but the finance company are contending that they terminated last year so I have lost the right. There's no evidence to say that they terminated and it seems that they are saying so in order to avoid having to take the car back and write off the balance. This is another issue which I am dealing with but if I can prove un-enforceability on the basis that the agreement is void due to the broker error it will save me the fight.

[Never-In-Doubt]

Re: Car Finance Problems

Were you ever served a default notice in line with s.87/88 CCA(1974).....

If not then the termination is bad

[mrwasp]

Re: Car Finance Problems

I never received a default notice. However, as a result of issuing a complaint they hit my credit file with a default notice last month even though they claim I defaulted last year.

[SXGuy]

Re: Car Finance Problems

Even though the default was put on your credit file last month, does the date of default reflect when they say you defaulted?

[mrwasp]

Re: Car Finance Problems

Good question. In their paperwork they claim I defaulted in July last year although my credit filed showed just 2 payments late throughout the year and no default marker on experian. However, when I started my complaint, they placed a default marker on my account for September this year (in my complaint to the FOS I stated that my credit file shows that I have not defaulted). When I raised this issue with the FOS they have now backdated the default marker to July last year. Fortunately, I have screen prints of this showing no default, then the default appearing this year and then being backdated to last year.

[Never-In-Doubt]

Re: Car Finance Problems

That all helps...... You say the FOS - ok, so what have the FOS said then? I still think they have issues by terminating without first defaulting you, they have in essence cancelled the agreement and want all monies due but technically they were not entitled to ask for the full balance as they did not default you properly.

Maybe chase Andrew - he has the paperwork you sent me

FOS is the last resort, when you've tried everything else really.....

[mrwasp]

Re: Car Finance Problems

This has been going on since 2009 as the purchase price on the agreement is wrong and I've been arguing with the lender and broker ever since. Hence this year I took it to the FOS but it's still in progress and I'm not confident that I will get anywhere but who knows.

I'm assuming that if I dont succeed with the FOS then the lender will sue so hopefully at that point I can reason with a judge on the basis of wrong purchase price, missing terms, no proper default etc.

The FOS is a handy route though as there are issues over the broker not responding to the complaint, members of staff lying in emails (which I can prove) etc - overall there's been a lot of frustration caused when trying to sort the issues which the FOS generally consider yet a Judge wouldn't.

[SA Gold]

Re: Car Finance Problems

just picked up on this thread MrWasp. sounds like they have given you the run around

Wishing you the best of luck with it.