The Trade Centre Finance Through Motonovo

[jafitz120983]

Hi all. I am looking at the possibility of exercising a VT.

I would be really grateful for some advice here. My heart sunk when I looked at my contract because I feel like I may have been missold by the car dealer.

The key features of my credit product are as follows:

car price £5500

Hire Purchase: £3956.10 (18.7% APR)
Additional Personal Loan: £1443.90. (15.1% APR)

total amount payable: £8023.60

At the time of purchase I was advised that a portion of the agreement would be a personal loan. For the life of me I do not recall why they suggested this but my wife said she remembers the lady saying it’s the best way to lower the monthly payment or interest. I’ve listed the APR’s above.

My heart has sunk because I have a feeling that they added this personal loan to the agreement as a loophole so that I could never exercise a VT. (Voluntary Termination).

If there is any legal beagles out there that could advise on the matter I would be in your debt. If indeed I have been missold the finance what are my next steps. The FCA?

many thanks
Jim

[jafitz120983]

Hi is there anybody able to help?

thanks in advance.

[R0b]

Have you checked your paperwork, does it say anywhereh "TERMINATION: YOUR RIGHTS"?

Hard to tell you the position without seeing the documentation.

[jafitz120983]

Hi Rob thanks for your help.

There is is a section about this. Very short and seem vague and non mention at all about VT.

kr
jim.

[R0b]

That section is a fixed mandatory statement by law. It is very clear on your right to terminate and what you need to do to meet that right.

If you are suggesting that it is vague or has been altered then you are going to have to post that section up on here so we can see it in full.

VT is a phrase used to describe your right to terminate the agreement early under the Consumer Credit Act. It isnt going to be referenced in your contract because there is no such definition.

[Amethyst]

For info - it does seem to be a 'standard' arrangement - https://customer.motonovofinance.com/hire-purchase-plus

[jafitz120983]

That section is a fixed mandatory statement by law. It is very clear on your right to terminate and what you need to do to meet that right.

If you are suggesting that it is vague or has been altered then you are going to have to post that section up on here so we can see it in full.

VT is a phrase used to describe your right to terminate the agreement early under the Consumer Credit Act. It isnt going to be referenced in your contract because there is no such definition.

Hi Rob Ive uploaded the portion that i can find on the agreement. Your Right To End This Agreement

many thanks
Jim

[jafitz120983]

For info - it does seem to be a 'standard' arrangement - https://customer.motonovofinance.com/hire-purchase-plus

Thanks for posting this and your time, I did have a google myelf and couldnt find anything I was typing in Hire Purchase Personal Loan Hybrid Finance!

At least now it seems that it is a legitimate standard arrangement. But still The reasons it states there for offering that agreement wouldnt have applied to me.

The Personal Loan is designed to be used for:

1. Settling a previous finance agreement (contra-settlements)
2. Vehicle extras/accessories

Both of these did not apply to me.

Thanks again
Jim

[Amethyst]

I'd have been surprised had it of applied.

On the other side of that sheet is there a bit says " Termination - Your Rights " ?

as per

[jafitz120983]

No this is the only mention of it. It’s like it has been omitted or not provided.

[Amethyst]

Bizarre, Is there anything on the back at all? or is this the back and the front is the numbers bit? It might actually help to see the front of the agreement anyway if you can blank out your details and post it up pls.

[R0b]

Did you have a car that was already on finance that you wanted paying off or trading in or were you simply purchasing a new car?

Any witnesses, paperwork or other written evidence to support this view?

[jafitz120983]

Hi guys this is every page of the agreement that i was given.

[jafitz120983]

Did you have a car that was already on finance that you wanted paying off or trading in or were you simply purchasing a new car?

Any witnesses, paperwork or other written evidence to support this view?

Hi Rob, we traded in a car but they gave us £100 for it. There was no finance on the car. Just simply purchasing a new car. They gave me a suitability document where I had to answer certain questions. I hav a copy of that. Nothing in there to say what time of finance was going to be offered and why.

[R0b]

Doesn't look like a compliant agreement to me. For starters, the agreement omits the statutory statement "Termination: Your Rights" which is what I was getting at earlier. Under the Consumer Credit (Agreements) Regulations 2010, by law Motonovo must include that statement; it is not optional (see below)

Link to CC(A)R 2010

Regulation 3
...
(4) Documents embodying a regulated consumer credit agreement, other than an exempted agreement, shall contain statements of the protection and remedies available to debtors under the Act, in the Form numbered in column 1 of Schedule 2 to these Regulations and set out in column 3, in so far as those statements relate to the type of agreement referred to in column 2.

What Reg. 3(4) says in plain English that certain statements of consumer rights and remedies must be incorporated into the credit agreement. Item 9 in Schedule 2 relates to HP agreements and it must be exactly as it states, it can't be modified in any way whatsoever.




I can't see the above statement in your agreement and therefore Motonovo are not compliant and so you could argue that the agreement has been improperly executed. The effect of an improperly executed agreement means it can't be enforced without a court order. Now, whether you want to go down that route and stop paying is not a decision to be taken lightly.

Your alternative option is that you submit a formal complaint to Motonovo setting out the background to this and explain to them you believe that Trade Centre Wales has mis-sold you the agreement. The agreement as per their website (which you should screenshot or print off for evidential reasons) suggests this type of agreement is geared towards consumers who want to purchase a new car and pay off their existing car finance so that it is combined into one single payment.

Although one payment, I consider the HP and personal loan to be two separate agreements despite there being only one document. Under a HP you have the right to terminate the agreement by paying 50% of the total price and it seems pretty clear cut that the HP Plus agreement is not suitable for you and I am not entirely sure it benefits you because you are paying two separate interest rates, one for the HP and one for the personal loan.

You need to decide what sort of resolution you want from this, whether it's a new agreement drawn up so that it is PCP only, compensation or to terminate altogether without penalty.

If Motonovo refuse your complaint, you can take it to the Ombudsman for a decision. You could also threaten to report them to the FCA as their omission of that statement is a fundamental consumer right and they ought to know better.

Happy to provide any comments if you want to post a draft up prior to sending it to them.