Car Finance Fiasco

[JoshB94]

Hi everyone was just wondering if anyone would be able to help me with a finance agreement that my partner wants out of, now i've tired to do a lot of research on the subject but can not wrap my head around it all.

Basically the short story of the situation we find ourselves in is that my partner in the September of 2014 signed a agreement that lasts for 60 months with 59 payments of £158.40 and a final one of £546.95, however since then circumstances have changed and we would really like to end the agreement. Now the Agreement its self is vague and long winded as most are but is covered under the Credit Act of 1974, and under this act if I am not mistaken once 50% of the agreement is paid depending on what type of agreement this is we can simply hand the car back?

However the question I ask is in regards to what type of fiance this deal really is as nowhere in the contact does it state that its either a PCP, PCH or HP agreement all it says is fixed sum loan agreement regulated by the consumer credit act of the 1978 at the top. Then proceeds to list of all the amounts payable and such. I have attached a file of the front cover so anyone willing to help can maybe tell what type of agreement this is, and then if they can maybe help as to what is the best way to settle this agreement as the monthly payments are quite frankly obscene.

Many thanks

Josh

[R0b]

Re: Car Finance Fiasco

Hi everyone was just wondering if anyone would be able to help me with a finance agreement that my partner wants out of, now i've tired to do a lot of research on the subject but can not wrap my head around it all.

Basically the short story of the situation we find ourselves in is that my partner in the September of 2014 signed a agreement that lasts for 60 months with 59 payments of £158.40 and a final one of £546.95, however since then circumstances have changed and we would really like to end the agreement. Now the Agreement its self is vague and long winded as most are but is covered under the Credit Act of 1974, and under this act if I am not mistaken once 50% of the agreement is paid depending on what type of agreement this is we can simply hand the car back?

However the question I ask is in regards to what type of fiance this deal really is as nowhere in the contact does it state that its either a PCP, PCH or HP agreement all it says is fixed sum loan agreement regulated by the consumer credit act of the 1978 at the top. Then proceeds to list of all the amounts payable and such. I have attached a file of the front cover so anyone willing to help can maybe tell what type of agreement this is, and then if they can maybe help as to what is the best way to settle this agreement as the monthly payments are quite frankly obscene.

Many thanks

Josh

Hello Josh,

As you have pointed out it is a fixed sum loan agreement. That is the same type of agreement as if you took out a loan directly from the bank but these types of loans are specific reference to cars. You cannot exercise your right to VT as those rights are only applicable where you do not own the car.

The only thing in your favour is that your partner should own the car outright under this type of agreement and so could sell if wanted to. I would double check the terms and conditions and if there is anything within it that states ownership of the car does not pass until you have made all of the payments under the agreement then there is the potential to argue that although the agreement is headed 'Fixed Sum Loan' it may in fact be a HP or conditional sale agreement. You have to look at the substance of the contract and not just what it says at the top.

That being said, sometimes people may be misled into thinking it is one type of agreement and turns out to be another - it is fairly common when people don't know the difference between the types of agreements and simply refer to them all as 'HP', which is where it can get confusing and have potential impact at a later date.

If you were handed documents by the dealer or whoever was acting on behalf of Fiat Financial Services, that made reference to HP or conditional sale or an agreement other than a Fixed Sum Loan, and nothing changed and you were not made aware of the fact that the agreement had changed which affected your rights, then you may have an argument for misrepresentation.

Other than that, it would seem that you are out of luck I'm afraid, and stuck with the payments.

[JoshB94]

Re: Car Finance Fiasco

Hello Josh,

As you have pointed out it is a fixed sum loan agreement. That is the same type of agreement as if you took out a loan directly from the bank but these types of loans are specific reference to cars. You cannot exercise your right to VT as those rights are only applicable where you do not own the car.

The only thing in your favour is that your partner should own the car outright under this type of agreement and so could sell if wanted to. I would double check the terms and conditions and if there is anything within it that states ownership of the car does not pass until you have made all of the payments under the agreement then there is the potential to argue that although the agreement is headed 'Fixed Sum Loan' it may in fact be a HP or conditional sale agreement. You have to look at the substance of the contract and not just what it says at the top.

That being said, sometimes people may be misled into thinking it is one type of agreement and turns out to be another - it is fairly common when people don't know the difference between the types of agreements and simply refer to them all as 'HP', which is where it can get confusing and have potential impact at a later date.

If you were handed documents by the dealer or whoever was acting on behalf of Fiat Financial Services, that made reference to HP or conditional sale or an agreement other than a Fixed Sum Loan, and nothing changed and you were not made aware of the fact that the agreement had changed which affected your rights, then you may have an argument for misrepresentation.

Other than that, it would seem that you are out of luck I'm afraid, and stuck with the payments.

Hi Rob thanks for the reply.


In regards to the misrepresentation the staff who sold her this deal have all been been sacked by the dealership they were part of due to issues with the selling practices they had, and as far as im aware nothing was said as in regards to what type of deal it was. The word finance was the most detail they gave about the type of deal it was, and both of us being younger and less wise didn't think to ask.


When it comes to selling the car will we have to repay the loan amount plus interest or will the early settlement mean we no longer have to? And with selling the car should we simply ring them and inform them of our intentions to sell the car and see what they say as that is 100% something we would be interested in as we simply want the dam thing out of our lives?


Your help has been greatly appreciated by the way.


Thanks Josh

[R0b]

Re: Car Finance Fiasco

Do you have anything in writing about the sales staff being sacked for the dubious selling practices?

If there was no specific discussion on the type of contract you would be entering into then it simply comes down to the agreement being signed without fully reading the terms and there is no defence to that I am afraid. But again, the first thing to do is to read the terms as I've pointed out just because it says one thing doesn't mean to say it is that type of agreement. Look for any ownership clause and see what it says

As for the selling of the car, you do not have to inform Fiat if the contract says you own it - It's yours to keep and you do whatever you want with it. You could then seek to get an early settlement figure, where you'd get a rebate on the interest that would've have been paid for the remaining years of the contract. when you request an early settlement, they have an obligation to put it in writing and inform you what is owed and how its been calculated, though usually the quote will only last for a period of time before it expires.