Car finance issues

[kim481]

Good evening,

I just wanted to ask a few questions. I finally got my car agreement (previous post).

Today my car broke down. I reported it to my lessor and asked for a contact number for the breakdown company as he stated it was included in the agreement when I received the car. No response, so very kindly the guys at the petrol station gave me a push and it started. The car has had previous starting issues which I reported to the finance company within the warranty period and I was ignored.

Upon coming home I checked my car online. It has no tax!!! Under the agreement the company is responsible for tax. I called them and they can give me no explanation as to why I don’t have tax. Was told they will check when they get home, even though this can be checked online on a mobile. Still haven’t had a response 2 hours later.

I have now now written a formal letter of complaint about the issues I have had with them since getting my car in May 2018.

This also included that they financed me a car without an mot and service so how do I know the car was road worthy when I got it, it’s a 2015 Cora and I keep getting problems with it. I wouldn’t expect it for 3 years old!

Also upon checking the director of the company online it is different to the one I know and signed the documents with. There is some type of fraud going on here as I know who the director is and he has stupidly used his home address on company house. Where do I stand with my agreement as the company director stated isn’t the real company director? I am thinking of returning the car and taking them to the small claims court for a full refund of my money.

Thanks in advance x

[kim481]

Also is there a way to check who the registered keeper of the car is as I suspect some kind of fraud going on and I don’t want to keep making payments and I’m not sure if they legally own the car.

thanks x

[Amethyst]

I think you need to post a copy of the agreement up. It doesn't sound great all round - just read your previous post too.

https://vehicleenquiry.service.gov.uk/ViewVehicle

is for checking tax / mot status etc - it won't give you records on the registered keeper - but surely that should be you - do you have the v5 ?

[kim481]

Good morning Amethyst,

many thanks for for your reply.

i have been calling the company this morning and no one is answering the phone dispite me calling them last night to notify them that I have no car tax!

A copy of the agreement has been posted below.

I have checked online and thats where I found my car untaxed. I don’t have my V5 as the car is financed through the company so they said they will keep it until I have made my final payment. I have requested that they send me a copy of the V5 within the next 5 days so I can see why the car is registered to.

[Amethyst]

Can you tell me the company ? ( pm if you prefer ) the agreement hasn't uploaded you might need to use pain or something to reduce the size ( or do a screenshot of it and upload that as it makes the file size smaller but is still readable )

so so far as I am aware you should have the log book and be the registered keeper ( else the lender would be deluged with parking tickets / speeding fines etc )

[kim481]

Car agreement attached

[Amethyst]

Cool - having a nose and tagging R0b to have a look too xxx

[Amethyst]

They're not FCA authorised for consumer credit and the company was only incorporated 22 May this year. Alarm bells for me I'm afraid.

check you've removed your name from signature page of document

What was the cash price of the car ? £6000 ?

have you checked if it was hp clear and not a previous write off etc for insurance ?

[kim481]

Yes it is £6000 in total. So far I have made payments totalling £1500.

What does it mean if they aren’t registered at the FCA? Sorry I’m a bit clueless about that

[kim481]

I have spoken with the lessor who says I don’t need to see copy of V5. This raises my suspicions more as he is refusing to show me proof the car belongs to him. Also requested tax confirmation and he is delaying providing this.

[kim481]

Also asked who the director of the company was as it’s not in his name, he said that’s none of my business either. But I make payments to a certain individual who was company director at the time of me signing the contract and isn’t now

[R0b]

Definitely a number of alarm bells should be ringing here, have you carried out a HPI check on the vehicle to see if it is finance free and/or belongs to the right owner?

If the car was for private (and not business) purposes, then your agreement will be subject to the Consumer Credit Act 1974 as it will be deemed a consumer credit agreement. In order to offer credit to consumers, you must be authorised by the Financial Services Authority, and if a person or business offers credit to a consumer without having first been authorised will (from memory), amount to a criminal offence.

The first thing you should consider is reporting this business to the FCA to investigate. Unfortunately, as the business is not FCA authorised, you cannot seek redress through the Financial Ombudsman Service.

Having a quick scan of those terms, it doesn't look as though they are compliant with the Consumer Credit Act. I am also unsure as to what this interim contract is whether this is the one you have uploaded or this is your 'new contract' - can you clarify that?

Did you ever receive any pre-contract information from the company prior to signing it?

Assuming the contract has been improperly executed, it cannot be enforced without a court order and I doubt a court is going to enforce something which amounts to a criminal offence.

I would say you have sufficient grounds for making no further payments, but the risk is up to you. Out of curiosity, have you checked if this agreement is sitting on your credit file?

Also the fact that the car was without an MOT and tax could amount to a material breach of contract which would allow you to terminate.

[kim481]

Hi

many thanks for your detailed information.

I will do an HPI check on the car ASAP. I was going to request the registration details from DVLA using form V888.

The interim contracts I spoke of were temporary month to month leases as my contract hadn’t been prepared apparently. I received the contract I uploaded 6 weeks after I had financed the car. No pre contract information was provided, just the temporary lease agreement.

My agreement is not showing on my credit file at all.

I find it it very stressful dealing with the individual in question. When I send emails or try to raise my concerns, I get ignored or shut down and told it’s none of my business so I feel I have no other option than to take this case to court.

[kim481]

I just wondered if someone could give me some advise regarding the issues I’m having.

i have sent repeated messages to the finance company and been ignored. I requested that the V5c is put into my name as registered keeper so I can tax my own car and pay my own penalty charges (without paying their excessive fees). This has all been ignored.

What would my next step be? The small claims court? And what would I be claiming for? I am happy to hand back the vehicle but would want the £1500 I have already spent on it to be returned

Thanks in in advance for your help.

[R0b]

If you are clearly being ignored then your next step might be to take the matter to the small claims court.

First of all have you checked to see if the company is still active and not dissolved? You can do this by going to https://beta.companieshouse.gov.uk/

Secondly, you will need to send a letter before action before you institute legal proceedings, otherwise you will not have complied with the protocols and you could be sanctioned by the court usually with costs but could be some other sanction that the court thinks appropriate.

Rather than sending text messages you need to put everything in a letter or by email and that will be your evidence if the matter goes to court and ends up in front of a judge.

You also need to consider whether the business has any assets or financial backing to pay for the amount being claimed if you are successful. There's no point issuing a claim if they have bad credit and/or are in serious debt with other creditors. Experian do commercial credit checks at a cost of £24.99 and if that report suggests they are in good financial standing, you could also lok to recover the £24.99 cost from them. Click here for more info on Experian commercial credit checks.

If you want any feedback before sending anything to the company, feel free to post up here