MAladministration by finance company

[sean44]

Hi

If I want to Voluntarily Termination a HP agreement after paying half the amount I am legally allowed to do this.

But the finance company says you cannot do this as their system tells them you cannot do so at that time.

Therefore, for a whole year I am left paying for an expensive car, when my partner has lost their job. It caused me severe financial hardship and the finance company placed adverse comments on my credit file because I was struggling to pay the monthly installments.

I have now asked the finance company if I can again Vouluntarily Terminate my agreement. This time they have said yes I can, but they have also admitted their system made a mistake a year ago and in fact I could have Voluntarily Terminated my agreement a year ago. They have admitted the mistake in writing.

Due to their mistake/maladministration I suffered severe financial hardship and went into debt. This could have been avoided if I had not been given incorrect information by the finance company in respect of the Voluntary termination.

My question is can make a claim against the finance company for maladministration because they caused me severe financial hardship and made me go into debt? I was forced to keep and pay for an expensive car when I could not do so, did not want to do so and did not have to do so.

[leclerc]

Re: MAladministration by finance company

Hi

If I want to Voluntarily Termination a HP agreement after paying half the amount I am legally allowed to do this.

But the finance company says you cannot do this as their system tells them you cannot do so at that time.

Therefore, for a whole year I am left paying for an expensive car, when my partner has lost their job. It caused me severe financial hardship and the finance company placed adverse comments on my credit file because I was struggling to pay the monthly installments.

I have now asked the finance company if I can again Vouluntarily Terminate my agreement. This time they have said yes I can, but they have also admitted their system made a mistake a year ago and in fact I could have Voluntarily Terminated my agreement a year ago. They have admitted the mistake in writing.

Due to their mistake/maladministration I suffered severe financial hardship and went into debt. This could have been avoided if I had not been given incorrect information by the finance company in respect of the Voluntary termination.

My question is can make a claim against the finance company for maladministration because they caused me severe financial hardship and made me go into debt? I was forced to keep and pay for an expensive car when I could not do so, did not want to do so and did not have to do so.

Did you approach your other creditors as well with regards to the financial hardship and what was their responses?
You can certainly ask them for compensation for distress and inconvenience that their misinformation caused. Do you have that error admitted by them in writing?(cos that would be very powerful to have).

[sean44]

Re: MAladministration by finance company

Yes all my other creditors were helpful and allowed me to pay smaller monthly installments. But all of the creditors posted adverse information on my credit file. My credit was very good before this and now I am struggling to even get the basic credit.

But the point is I would not have got into any debt problems if the finance company had not misinformed me. They caused me a lot of hardship and damaged my credit history.

Yes I do have a letter from them saying 'our system made the mistake.'

I ended up paying over £3000 in installments, service charges and repair costs for a car I did not want.


What can I do to claim my money back and under what law would I do this?


Is there a template I can use to send them a claim or can someone please point me in the right direction.



They are now saying I have a liability of nearly £6000 after the Voluntary Termination. The car has apparently been sold and as I have Voluntarily Terminated teh agreement I should not have this Liability.

[Guest]

Re: MAladministration by finance company

You begin by adding up what you have lost, including placing a value on the damage caused to you due to the adverse information placed on your credit file and you send them a letter before action. This sets out what you want them to pay you and what you will do should they not agree.

[Shepherdess]

Re: MAladministration by finance company

Hi Sean,
As far as I'm aware, under the Consumer Credit Act they are only due to the car plus 50% of the total price payable to the finance co.
You need to check the TOTAL price payable on your agreement, then work out exactly how much you've paid. If it's less than 50% of the total they would be due the difference.

HOWEVER, in view of their maladministration and it's effect on your credit record etc, if there's any left to pay you could presumably counterclaim or threaten to do so in order to settle the debt.

There are others on here far more knowledgeable about this than I am, so wait for more input.

How do the figures stack up?

Shepherdess

[sean44]

Re: MAladministration by finance company

Another thing, when I took out the HP they said I also had to have a separate loan as I could not get enough credit on the car.

They are now saying this is separate to the credit agreement and I still need to pay these monthly installments, even though I have Voluntarily Terminated the agreement.

As this loan was also secured on the car, I should not have to continue paying this as it would be part of the Vouluntary Termination.

[pompeyfaith]

Re: MAladministration by finance company

What was this separate loan for exactly?

If they felt you was not earning enough to finance the whole car price in one loan, that is bad practice to give you a second loan as clearly they felt you could not manage with to finance the whole car on one loan.

That is treating you unfairly have you made a complaint to the OFT.

[Shepherdess]

Re: MAladministration by finance company

Exactly.
Sean do you still have the paperwork for this second loan...if so what do the T&Cs say exactly in relation to VT?
Also, what was to total amt payable, and the amt you have paid up to VT, on each loan?

Elsa x