Rejecting a car on finance as unfit for purpose

[j4mes]

Re: Rejecting a car on finance as unfit for purpose

Sent by email and followed up by letter. Should by now have arrived so will see what's said. If I don't get a response within 2 weeks this time is it best to go to a solicitor, county court claim myself or financial ombudsman?

[des8]

Re: Rejecting a car on finance as unfit for purpose

IMO no reason for not making the claim yourself.
If you go via a solicitor it is doubtful you will recover his costs.

[j4mes]

Re: Rejecting a car on finance as unfit for purpose

Well I have an update.

received an email yesterday from a manager at the broker (deadline for action was Monday!) saying:

"Following your complaint. The case has been escalated to myself for review and consideration. I have decided that the best course of action would be to collect the vehicle from you arrange the termination of your agreement and deal with the supplying dealership separately.

I have attempted to call you today to obtain authorisation to pass your details to a recovery firm in order to arrange the collection however, I have been unsuccessful.

Please contact me at your earliest convenience to discuss this.

You can supply this authorisation via email. We will require confirmation of the location of the vehicle (address in full including post code) and a number the driver can reach you on to make the arrangements."

I replied with the details and asked about my payments, rental car costs and an estimated timeframe for them taking the car back. I received a second response of:

"Thank you for your response. I will send the details over to the transport firm it will need to contact you directly to make the necessary arrangements as it is a third party company.

Can the vehicle be collected next week? If so I will attempt to obtain their availability for next week.

With regards to payments made to date for the vehicle. As we are the broker and not your finance provider, I am unable to advise on this portion given the agreement is not with [broker]. We do not hold that information unfortunately.

My understanding is that once the vehicle has been collected, the lender will review and calculate a return. This will be based on fair usage of the vehicle I believe. However, this is something [finance company] "will review once the account has been settled.

With regards to hire cost incurred, I am unable to discuss this as we have no record of this cost being approved in the first instance. In addition to this the dealership/finance company are only obligated to arrange a courtesy/hire vehicle for a repair duration. It is not obligated to do this when arranging a rejection unless you entered the agreement with a part exchange vehicle. However, my understanding is this is also based on the fact that finance payments will be reimbursed but as explained above, this will be calculated and discussed via the finance company once the account has been settled.

Any questions please give me a call.

Kind regards"

Any advice to proceed? I had raised my complaint to the F.O.S. but I doubt they've been in touch with any companies yet about it.

[des8]

Re: Rejecting a car on finance as unfit for purpose

1) at last they arranged collection.

2) "lender will review and calculate a return" err no. You should receive a full refund.
The rejection was a short term rejection,ie within the first 30 days and so you are entitled to full refund.
You allowed them an attempt at repair. This stops the clock until repair satisfactorily completed. Repair never satisfactorily completed so a full refund please

3)The claim that they only have to provide a courtesy vehicle for the duration of the repair, should be treated with a certain amount of contempt.
They have breached your statutory rights and this allows you to claim damages ie extra costs to which you have been put.
This is detailed in CRA 2015 Sec 19 Consumers Rights to enforce terms about Goods Para (11)"other remedies..... open to the consumer.....(a) claiming damages"

I would just gently(?) remind them of the above, and also point out that he refund "must be given without undue delay, and in any event within 14 days beginning with the day on which the trader agrees that the consumer is entitled to a refund" (CRA 2015 Sec 20 (15)


apologies for weird set out!

[j4mes]

Re: Rejecting a car on finance as unfit for purpose

Potential response? Send to broker and finance company directly.

Thanks for your response dated 10/12/2016.


Thanks for the note that my details will be passed to the transporter company. I shall inform you and [finance company] as and when the vehicle is agreed to be collected.


With note to your other points, I believe it is still considered a short term rejection as I noted the fault within the first 30days, and the "clock" would be stopped until such a time that it was agreed the vehicle was satisfactorily repaired rather than returned to me. This agreement was never made, with me actually voicing concerns to [member of staff A] prior to collection the second time from [vendor]. As a result, I expect a full refund to follow of deposit and monthly payments made.


With regard to the rental car costs not being agreed, The Consumer Rights Act 2015, section 19.11 states that I can claim for damages where I consider there to be a breach of the contract. By rejecting the car, I am considering there to be a breach of contract. I also remind you that as the rejection was accepted to me on 09/12/16, any refund should be given without undue delay, and in any event within 14days.


I look forward to a prompt response.

[des8]

Re: Rejecting a car on finance as unfit for purpose

Potential response? Send to broker and finance company directly.

Thanks for your response dated 10/12/2016.


Thanks for the note that my details will be passed to the transporter company. I shall inform you and [finance company] as and when the vehicle is agreed to be collected.


With note to your other points, it is still considered a short term rejection as I reported the fault within the first 30days, and the "clock"is stopped until the vehicle was satisfactorily repaired.
The vehicle has never been satisfactorily repaired. As a result, I expect a full refund to follow of deposit and monthly payments made.


With regard to the rental car costs not being agreed, The Consumer Rights Act 2015, section 19.11 states that other remedies open to the consumer include claiming for damages .
I also remind you that the Act requires any refund should be given without undue delay, and in any event within 14days.


I look forward to a prompt response.

I would send a slightly amended note as above.
I would stick strictly to what the act says, without giving any reasons such as "breach of contract", or commentary as to when this, that or the other was done.
To try and give reasons after all this time only leaves the door open for them to raise red herrings

[j4mes]

Re: Rejecting a car on finance as unfit for purpose

Just to update:

car was collected by the finance company agent on Wednesday. The finance broker has confirmed they've had the monies for the vehicle returned and it's being processed back to the finance company themselves to arrange a refund. No mention of deductions or amounts as of yet. We shall see but I've bought a replacement vehicle a few days ago so hopefully a line can be drawn on this saga shortly.

[des8]

Re: Rejecting a car on finance as unfit for purpose

progress!!!

If necessary yu can remind them they have 14 days* beginning with the day on which the trader agrees that the consumer is entitled to a refund" (CRA 2015 Sec 20 (15).

Happy Christmas

*those 14days aren't only working days,they include all days

[j4mes]

Re: Rejecting a car on finance as unfit for purpose

Chased up finance company yesterday with a reminder that they should be refunding within 14days (which was up to 23rd December) and sent a list of what I expect from them- monthly payments, deposit and rental car costs with invoices supplied. Told them I expect a response within 7days.

[j4mes]

Re: Rejecting a car on finance as unfit for purpose

Another update- 1) a direct debit payment has been taken today by the finance company. Rang the bank and they've blocked the payment and organised it to be returned (can't remember the proper name of it)

2) I'm getting the fair usage reduction and not agreed to rental car line.

Ive rang the finance company and went mental on the phone about it still ongoing and told them I'm adding any bank charges into my claim and I'm speaking to a solicitor tomorrow (I get free legal advice through the RMT for non-work issues). All being correct, I'll be issuing the court claim on Friday against them.

[des8]

Re: Rejecting a car on finance as unfit for purpose

I like their attempt to charge for fair usage when 1)the dealer has returned the monies to them and 2) the vehicle was rejected under the short term right of 30 days.
And of course the CRA 2015 confirms you can claim damages!
They need educating, and that's best done in writing, not on the phone!

[j4mes]

Re: Rejecting a car on finance as unfit for purpose

I've told finance company that I've informed the FOS as the rejection was accepted 9th december, and the 14days takes it to 23rd December for refund. Finance company argued they didn't get their refund until 22nd December and car was only collected 21st December, plus xmas so refund will be processed in due course. I quoted word for word from the Consumer Rights Act about 14 day period and that I can claim damages, and was disregarded. I even said it was from the act I rejected the car under. They also had no answer as to why it took nearly 5 weeks for them to accept the return.
And they say that I've had a few months use out of the car so they're entitled to take a deduction. But when I asked why I should be responsible for the use of the car when I continually notified them it was faulty, the impression given was "tough you used it".

FOS will hopefully respond tomorrow, if not I'll call them.

[des8]

Re: Rejecting a car on finance as unfit for purpose

Good luck with FOS (I personally wouldn't have bothered)

You are well aware of the 14 days in which theyhave to refund your money after the TRADER has accepted rejection.
As you rejected under the short term right (the thirty days clock is stopped whilst awaiting repairs and you actually rejected the car back in July(?) No deductions should be made.

I would now be getting my claim form completed for the court, so if there is any more p*****g about a court claim would be with them by return.

You also paid by credit card so a potential claim to them is available.

[j4mes]

Re: Rejecting a car on finance as unfit for purpose

Another update

I received this letter today from the finance company



It's in the hands of the Ombudsman now but their response is an insult to be fair

[des8]

Re: Rejecting a car on finance as unfit for purpose

You might be dissatisfied with the ombudsman's eventual decision.
They take their time, and decide on the basis of what they feel is fair, not necessarily according to the strict letter of the law!
await their decision with interest.