Blackhorse Motor Finance Interest Refund ?

[shaggybfc]

Hi, I purchased a car from Motorpoint in 2010 and subsequently traded that in for another car, taking out a further agreement. I have repaid the second agreement early. Today, out of the blue, I have received a letter from them telling me that for the first car agreement, that as a review of the annual statements of account that they sent me regarding my agreement, they have identified that they did not remind me of my right to voluntarily terminate my contract before completion. As a result they have calculated that I'm entitled to £1194.86 for the interest paid as a refund.... they also go on to say that they will send a cheque and this 'must' be presented at my earliest convenience to benefit from the refund.

My question is; why are they actively encouraging me to bank and claim this ASAP - is there something more to this?

Thanks Shaggy

[Amethyst]

Re: Blackhorse Motor Finance

Ooo you are cynical....but probably right. I'll try have a dig about see if Motorpoint/BHF have been ticked off for anything or if anyone else has had similar.

The amount of £1194.86 what does that relate to - is it all the interest that was charged from the time you traded in for another car to what would have been the end of the original agreement ?

Can probably help you work it out if you give us the amount borrowed, interest rate, term of contract ,date of inception and the date of trade (or upload a redacted copy of the agreement)

[shaggybfc]

Re: Blackhorse Motor Finance

Hi thanks,
Oh yes completely cynical when it comes to banks and any finance company.... far too many 'scams' they have been involved in recently

the letter states
"The consequence of this is that we are not entitled to retain the interest paid by you after the first incorrect statement was due to be sent to you"

"as we are not entitled to retain this interest, we are refunding back to you all the interest relating to and paid by you during the period that we did not provide the correct notice with the annual statement(s). Our calculations show you are entitled to be refunded interest of £1194.86 in respect of this period"

Since this agreement is 2 years old, I'd have to go up in the loft to dig out the original paperwork for further detail.

It sounds like they have been warned about 'improper' trading and trying to make amends,,, hoping I take an early settlement...

[Wombats]

Re: Blackhorse Motor Finance

I can't find anything Googling around, but I'd be cautious. I can see no reason whatsoever why they would volunteer the information rather than keep your money as profit.

If it were me, I'd pay the money into a little used account and leave it for a fair while before risking spending it, just to play safe.

[Kati]

Re: Blackhorse Motor Finance

Could it be PPI related? Maybe they're getting an offer in to stave off you claiming

[shaggybfc]

Re: Blackhorse Motor Finance

Thanks Kati,
it doesn't mention PPI or insurance anywhere in the letter.

[Kati]

Re: Blackhorse Motor Finance

I just wondered if they might be offering you £X because they've checked back through their paperwork and realised you might be due £XX in PPI if you claimed it back :tinysmile_twink_t2:
although ... Blackhorse are a subsidiary of Lloyds aren't they? Maybe they are being extra careful in case they gt taken to court again :lol:

[shaggybfc]

Re: Blackhorse Motor Finance

[MENTION=49370]Kati[/MENTION],
exactly why I asked - they just seem far too keen for me to present to cheque. If I take it, bank it, they I waiver my rights to anything else?

[Kati]

Re: Blackhorse Motor Finance

I'm not saying that's what they are doing ... I'm just throwing the idea out on the off chance :tinysmile_grin_t:
It does sound very suspicious to me tho'
K x

[Amethyst]

Re: Blackhorse Motor Finance

They may have been warned, I can't find anything though, or they may just have an extra on the ball compliance officer and decided to play things by the book so they don't get investigated, or they are in the midst of an investigation.

They are correct btw in that they aren't entitled to interest after they had failed to provide the correct notice with regards the voluntary termination with your annual statement. I'll dig out the relevant parts of the CCA for you ( 77 A I believe)

[Amethyst]

Re: Blackhorse Motor Finance

Yes - http://www.legislation.gov.uk/ukpga/1974/39/section/77A

[Amethyst]

Re: Blackhorse Motor Finance

I can't though find the rules of voluntary termination information to be included within an annual statement - will have a look but if someone happens to know it.

Might be worth other blackhorse custs checking their annual statements included the relevant term.


Btw HSBC did the same in August - http://www.bbc.co.uk/news/business-28639103 on standard loans

HSBC is expecting to pay back $367m (£218m) of interest payments to some UK customers owing to mistakes in paperwork for personal loans.

The bank has admitted to failing to include information in annual statements relating to the option for customers to make overpayments.

This is required in the UK under the Consumer Credit Act.

[Amethyst]

Re: Blackhorse Motor Finance

http://www.legislation.gov.uk/uksi/2...ents/made#sch1 ??


PART 3FORMS OF WORDING TO BE INCLUDED IN FIXED-SUM CREDIT STATEMENTS RELATING TO HIRE-PURCHASE OR CONDITIONAL SALE AGREEMENTS

5. The following forms of wording shall be included, as appropriate, in a statement under this Part:
“Termination: Your rights

You also have the right to end this agreement early in accordance with section 99 of the Consumer Credit Act 1974. You will not have to pay all the sums due under the agreement but you will not be entitled to retain the goods if you do this. Details were set out in your credit agreement. If you wish to terminate the agreement you should contact us for further information including any amount payable on termination.”.

“If you wish we can provide you with separate settlement figures for your [hire purchase] [conditional sale] [NOTE 1] agreement and for your insurance finance agreement. Please contact us in writing to obtain this.”.

[Amethyst]

Re: Blackhorse Motor Finance

So yes, check their calculations, basically all interest that was charged since the faulty annual statement should be being refunded.

Otherwise - YEY !! That's a nice early Christmas pressie for you.

[Amethyst]

Re: Blackhorse Motor Finance

If you can scan/photograph and upload (or email me admin@legalbeagles.info ) the letter it would be very useful.