Desparte for some help with PCP agreement

[twinkle256]

Hello, please could someone help me with some advise -
My 18 year old son went to Audi and has bought a car on a PCP - in Sept 2016, he had only been working self employed at that point for 6 weeks!! Audi would lend him the money without a guarantor, which I refused, however they then arranged him finance with Barclays finance. He has made 3 payments of £315, and has now got no work on, with the next payment being due on 23/01/2017, he has no way of paying this and is not able to afford £315 plus £170 insurance anyway as he is only an apprentice labourer on day rate, which is why I said no in the first place, never expecting them to lend him the money. He needs to hand this car back but I've no idea how to try and do this, I have been to Audi and they want nothing to do with it, and I have call Barclays and they are being very unhelpful, please what can I do, how Do I help him with this before it becomes something we both can't handle, I have no money to give him? No sure if this is in the right place as I've never used a forum before.

[R0b]

Re: Desparte for some help with PCP agreement

Hello, please could someone help me with some advise -
My 18 year old son went to Audi and has bought a car on a PCP - in Sept 2016, he had only been working self employed at that point for 6 weeks!! Audi would lend him the money without a guarantor, which I refused, however they then arranged him finance with Barclays finance. He has made 3 payments of £315, and has now got no work on, with the next payment being due on 23/01/2017, he has no way of paying this and is not able to afford £315 plus £170 insurance anyway as he is only an apprentice labourer on day rate, which is why I said no in the first place, never expecting them to lend him the money. He needs to hand this car back but I've no idea how to try and do this, I have been to Audi and they want nothing to do with it, and I have call Barclays and they are being very unhelpful, please what can I do, how Do I help him with this before it becomes something we both can't handle, I have no money to give him? No sure if this is in the right place as I've never used a forum before.

Hello

Although there is no easy way to say it, your son is partly to blame in taking out the finance knowing at his age he may not be able to afford the regular payments given that he is working on a self employed basis. Overall he should take some of the responsibility for signing the agreement. That being said, Audi and/or Barclays may also be to blame in that they could have instigated irresponsible lending.

When you say Audi and Barclays are not doing much about this, what have you done so far and what has their response been? I would also question your son on the following:

- The total credit amount under the agreement

- whether the Audi salesperson took any financial information and evidence of it. Also what financial information he gave to them as they should have asked for it at the time of applying for the credit.

Depending on the answers to the above, it is your son who's name is under the agreement I would suggest that he (perhaps you writing on his behalf) write a formal complaint to Barclays, setting out the circumstances and that under FCA rules, they are obliged to lend responsibly and ensure that those applying for credit are able to meet the monthly instalments and given that your son is only 18, has previously been offered little to no credit, they should not have agreed to lend the money in these circumstances and should re-take the car back and terminate the agreement without penalty.

It is possible that the Audi salesperson or your son, may have given inaccurate information about his financial income and therefore based on that information Barclays agreed to lend the money, though if it is the former, you will need to prove it.

There is no guarantee that the agreement will be terminated, but you could follow their complaints process which takes up to 8 weeks, then file a complaint to the Financial Ombudsman and they may take a more sympathetic view and order the return of the car and termination of the agreement.