Has this car finance been mis sold?

[gaz3570]

Hi all and thank in advance for any replies.
My daughter and her husband recent split, they had a lease car for 4 years on a PCP contract which expired end Aug17, in September 17 they took another lease car over 48 months. The credit agreement was in my daughters name only on both occasions. She has just lost her job also and now faces real hardship and has a baby at 15 months with no means to continue payments. I suspect voluntary hand back would not be entertained as she is no where near 50% paid as the contract is only a few months old.

Looking at the finance agreement where it mentions her eligibility to pay, I noted that it states that after all other outgoings, rent etc, she would have £1000 left in the bank. this is incorrect as she was only earning £900 per month, which if correct checks were done she would probably have been declined the credit. I assume from this the car dealer took into account the husband wages also even though his name is not on the agreement and they may have based it on the previous 4 years on the earlier lease car with no defaults.

Can I challenge the Renault dealer or finance company on this as mis sold? If not is there any other rout we can take as continuing payments is not an option?

Thanks Gaz3570

[Debt Camel]

Re: Has this car finance been mis sold?

You can try arguing that this loan was unaffordable and the lender was irresponsible because they did insufficient checks before giving your daughter the loan.

But if the reason this is unaffordable is because your daughter has split up from her partner she may struggle with this argument.

If she can't continue with the payments, there may be no practical option but handing back the car and then complaining about affordability - this complaint is likely to have to go to the ombudsman and so it may take months to go through.

Is there any chance her ex would like to keep the car and continue with the payments?

[gaz3570]

Re: Has this car finance been mis sold?

You can try arguing that this loan was unaffordable and the lender was irresponsible because they did insufficient checks before giving your daughter the loan.

But if the reason this is unaffordable is because your daughter has split up from her partner she may struggle with this argument.

If she can't continue with the payments, there may be no practical option but handing back the car and then complaining about affordability - this complaint is likely to have to go to the ombudsman and so it may take months to go through.

Is there any chance her ex would like to keep the car and continue with the payments?

Thanks for the reply , the husband has offered to take on the car but the finance company say it cannot be transferred We may try this again as it is in their interest. Otherwise It will be a legal battle to get rid of the debt and she may have to declare bankrupt which we would like to avoid.

[Debt Camel]

Re: Has this car finance been mis sold?

Perhaps the debt could stay in her name but he could make the payments?

If she does end up with a large debt from this, providing all her debts are under 20k, she will probably qualify for a Debt Relief Order (see https://debtcamel.co.uk/debt-options/dro/) which is easier (cheaper and shorter) than bankruptcy.