Car Finance - Front-loaded interest not stated in T&C's

[d.stenson]

In 2012 I took out a finance agreement with a company called "The Car Finance Company".

At point of sale i asked who credit agencies they report to as it was important to me the reported to all three as i was trying to rebuild my credit. The sales guy said yes and showed me the wording of the T&C'c which say they report to the "Agencies".

I rang them the other day for a settlement figure and it was more then the initial loan amount itself and i asked why that would be considering i was like 15 Months into a 36 month agreement and they then dropped the bombshell that the interest is front loaded. I got out the contract and read the terms and conditions and it states all the normal things i would expect such as the loan amount, total amount repayable, internist rate, APR etc.... but no where does it say or infer that the interest is front loaded.

I also checked with the 3 credit reference agencies to find that they done 3 credit search applications for 1 car (1 application) and they only report to only call credit.

I then rang them today and spoke to a manger who said that the interest being front loaded does not have to be in the terms and conditions which i found absurd and that as i am now committed to the contract they wont do anything about the extra credit searches or the fact that i was also lied to a point of sale as they don't report to all 3 credit reference agencies.

I can post the terms and conditions if needed but I would like some legal finesse.

[d.stenson]

Re: Car Finance - Front-loaded interest not stated in T&C's

Can anyone help with this.

[merjoryramose]

Re: Car Finance - Front-loaded interest not stated in T&C's

I think, The point which you discussed here is not mentioned in your car finance company agreements. So, You have a chance to ask them or else you may approach through legal also. Once consult the professional lawyers and get the best solution.

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[Guest]

Re: Car Finance - Front-loaded interest not stated in T&C's

Many credit PCP agrements are settled by a ballon payment at the end of the lease period. this does result in an inflated setlment figure in the early part of the agrement.

It may be possible to VT the agreement on more favorable terms, dependent on how much you have paid and the other financial particulars of the loan.

If you could post the:

Total amount due under the contract
The total amount you have paid(including any deposit trade in)
Your normal monthly repayment
The state APR

If you have any arrears on the account.

I can work out the total amount due on both early settlement (VS) and voluntary termination(VT) under section 99 of the consumer credit act.
You will then be able to see which is your best option.