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Hi guys
Need a bit of advice on this please.
I purchased a car in September 2011 with Arnold Clarke. We had £1000 in equity on our car at the time, put £1000 cash and financed the remaining balance of £11800 (which including £1000 of additional extras, Vehicle Replacement Insurance, extra warranty, 2 years MOTs and service)
When we took were going through the paperwork for the finance agreement, I noticed that they had put the part exchange value at £950 less than what we had agreed, therefore causing my financing balance to be £12800. I noticed this immediately and was told that it wouldnt make any difference to my monthly payments because they had gave me a great APR of 6%. I told them I was not bothered about whether it affected my monthly payments as I would be settling the agreement well before the end, and therefore when that time came, the monthly payments would be irrelevant to me and what would matter is the amount outstanding on the finance, and If i had financed an extra £950....just because it would 'save them the VAT on the difference' I would be left with that additional money to pay back at the end.
SO the paperwork was re-done. With the correct part exchange value, and the correct balance to finance of £11800. I was told that because I was not willing to finance the extra they would increase the APR to keep my monthly payments the same as what they would have been if I had of agreed to financing the £12800.
I am now in a position to pay off the finance in full, I called the financing company on 22nd december to be given a settlement of £12026, despite the fact I borrowed £11800 and have paid back £1100 in repayments. When asked why it was so high, I was advicesd that there are two fees that have been added to my agreement, one arrangement fee of £199, and a optional option to purchase fee of £299. This is the first I have been made aware of these fees. I have the paperwork for the ordering of the vehicle, and there is no mention of these fees what so ever. In effect, I have financed £500 more than what I ever agreed to.
Also.....after digging a little deeper, I have also found out that Arnold Clark have lied to me about the APR, it was in fact the flat rate interest rate they gave me (which is apparantly against FSA regulations)
I have sent a written complaint to Arnold Clark to which I have received a response this morning saying that I have signed the paperwork so basically Tough S**T. I have also complained to the financing company.
Can anyone give any advice as to where I stand here. I am willing to complain to the FSA if the finance company also brushes it under the carpet.
Advice would be much appreciated. Thanks in advance.
Need a bit of advice on this please.
I purchased a car in September 2011 with Arnold Clarke. We had £1000 in equity on our car at the time, put £1000 cash and financed the remaining balance of £11800 (which including £1000 of additional extras, Vehicle Replacement Insurance, extra warranty, 2 years MOTs and service)
When we took were going through the paperwork for the finance agreement, I noticed that they had put the part exchange value at £950 less than what we had agreed, therefore causing my financing balance to be £12800. I noticed this immediately and was told that it wouldnt make any difference to my monthly payments because they had gave me a great APR of 6%. I told them I was not bothered about whether it affected my monthly payments as I would be settling the agreement well before the end, and therefore when that time came, the monthly payments would be irrelevant to me and what would matter is the amount outstanding on the finance, and If i had financed an extra £950....just because it would 'save them the VAT on the difference' I would be left with that additional money to pay back at the end.
SO the paperwork was re-done. With the correct part exchange value, and the correct balance to finance of £11800. I was told that because I was not willing to finance the extra they would increase the APR to keep my monthly payments the same as what they would have been if I had of agreed to financing the £12800.
I am now in a position to pay off the finance in full, I called the financing company on 22nd december to be given a settlement of £12026, despite the fact I borrowed £11800 and have paid back £1100 in repayments. When asked why it was so high, I was advicesd that there are two fees that have been added to my agreement, one arrangement fee of £199, and a optional option to purchase fee of £299. This is the first I have been made aware of these fees. I have the paperwork for the ordering of the vehicle, and there is no mention of these fees what so ever. In effect, I have financed £500 more than what I ever agreed to.
Also.....after digging a little deeper, I have also found out that Arnold Clark have lied to me about the APR, it was in fact the flat rate interest rate they gave me (which is apparantly against FSA regulations)
I have sent a written complaint to Arnold Clark to which I have received a response this morning saying that I have signed the paperwork so basically Tough S**T. I have also complained to the financing company.
Can anyone give any advice as to where I stand here. I am willing to complain to the FSA if the finance company also brushes it under the carpet.
Advice would be much appreciated. Thanks in advance.
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