AshMan2
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Registered: 13th Feb 03
Location: Doncaster
User status: Offline
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I bought my corsa c on finance brand new in sep 2001.
Since then I lost my job and had difficulties repaying. Black Horse my finance company let me defer my arrears to the end thus extending the repayment period.
Since then I have also tried to cancel my payment protection which is costing me 51 quid a month (total of 3000!) I have got nowhere with this so I sought legal advice.
Basically they have told me I was mis sold the protection as it only applies if you have been in permanent work for a certain ammount of time, which I hadnt. I was 18 at the time of buying my car, the car its self was £8400, with £4250 worth of apr plus £3000 for payment protection.
Citizens advice are amazed that I was allowed to have a loan for such an ammount earning £6000 per year without even a guarantor.
The apr I am paying is almost 20% and am just interested in other peoples opinions on here and if I have any legal rights as I am struggling big time.
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viera
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Registered: 26th Oct 02
Location: 2nd Star to the right & straight on till morn
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as you were 18 when the finance was taken out they are totally within their rights to give you finance of any amount, if you are struggling, then i am afraid you will carry on struggling untill you have either paid it or sold your car and pay off as much as possible.
As for the CPI, you singned for this and have a copy (if not get one and if they cant provide it then you have a right to your money back) then it should have come with the terms & conditions, you would have been expected to read these at the time of signing thus releasing the finance company of any liability to give money back if the borrower is not allowed to claim.
Sorry to be so negative but i can't see a way out.
[Edited on 24-02-2003 by viera]
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cobra148
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Registered: 27th Oct 01
Location: Here in front of my monitor.....
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Out of interest, if you have payment protection, doesn't this cover you in the event of unemployment?
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AshMan2
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Registered: 13th Feb 03
Location: Doncaster
User status: Offline
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I have been told by the finance comapny I cannot sell the car as I technically I am not the legal owner. Citizens Advice told me for a loan of that amount and my income, a parental signature would have been required. I was also told that I wouldnt be accepted for finance without Payment Protection. I am now in a position where I cannot afford repayments for the payment protection. The strange thing is my friend went in a week later bought the same car with the same finance company ive seen his agreement with APR of only 6%
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AshMan2
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Registered: 13th Feb 03
Location: Doncaster
User status: Offline
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The payment protection apparently is only effective if you have been in continuous employment for at least 6 months which I hadnt been and they knew that before selling it me. I have a meeting with a solicitor tomorrow so I am hoping something will be sorted as I have contacted the garage who sold me the car and are very concerned about the matter.
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cobra148
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Registered: 27th Oct 01
Location: Here in front of my monitor.....
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So technically, you were wrongfully sold payment protection. If you were honest when taking out finance then I guess that should go in your favour.
I don't have a clue how these things operate but good luck and keep us posted how you get on.
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viera
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Registered: 26th Oct 02
Location: 2nd Star to the right & straight on till morn
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To be honest mate i will be surprised if you get anywhere, i work for a motor finance company and once you turn 18 you are legally accountable for any finacial agreement you get in to, you do not need a parent once you have turned 18, and even before you would not have even been able to take an agreement out as it would have had to be soley in your parents name, but no, once you are 18 some may ask for a garentor but it isn't law to do so.
You are however completely within your rights to cancel your CPI at any time thus saving you £50 a month, if the finance company won't cancel it after you have wrote to them, (as this will be required for legal reasons) then you can ask a solicitor to contact them to get it sorted as they will have to back date it to the first letter they received.
You 'can' sell the car, but the finance agreement has to be settled imediatly as the finance is secured on the motor but most companiesd understand that most peolple need the money from the sale of the vehicle to pay the agreement off and anyway it would only be a couple of days.
the only problem is that most people won't go near the car as the HPI check will show finance outstanding on it, there are ways round this to keep both sides happy, let me know and i will explain them.
My fingures are smoking, U2U me if you need any further info or advice.
V
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vauxtillidie
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Registered: 27th Dec 02
Location: Manchester Drives: Cav turbo/Corsa C20XE
User status: Offline
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i applied for finance on a car when i was 18 for the amount of £4000, i could only get it with my mum being guarantor on it, also i have the payment protection on mine but i wasnt in my job for longer than 6 months at the time so i hope mine wud be ok if i ever loose my job. cant the finance company take ur car to auction and sell it to make there money bak, i work at british car auctions and we have loads of cars from black horse, problem bein tho u'll still have the difference to pay. let us know how u get on
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AshMan2
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Registered: 13th Feb 03
Location: Doncaster
User status: Offline
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I have been trying since last July to cancel my payment protection and only yesterday have I recieved any reply about it. I still have to pay back 800 and odd quid to them as they loaned me the money to pay for the protection, but they say I am entitled to no refund as they have no evidence I have being trying to cancel it since July.
Trading Standards told me as a responsilble lender, as Black Horse claim they are, there should be no way they should have given me finance for 16k with my financial status at the time. I have a meeting with a solicitor tomorrow.
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Pete
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Registered: 20th Sep 99
Location: Northampton
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Surely it's not the lenders fault you got finance on that? You were 18, and signed the forms, surely you're the irresponsible one, certainly from a legal point of view.
There's nothing wrong with a finance company offering a shit deal, it's up to the customer to take it or not.
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AshMan2
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Registered: 13th Feb 03
Location: Doncaster
User status: Offline
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Well, all the advice ive been given by citizens advice and trading standards points directly towards me being ripped off, eg, being sold payment protection when it is no good to me, saying i'm entitled to no refund when I cancel it. Plus who charge me 19% apr when they charged my mate 6% on the same car less than a week later. Doesnt make sense.
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Pete
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Registered: 20th Sep 99
Location: Northampton
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That's crap, you signed a deal for 19% APR. It could've been 30% - you still accepted their offer and signed the paperwork.
I'm not saying it's fair or not, just that from my understanding of contract law, you've not got a leg to stand on.
Only take so much notice of what trading standards tell you, half of it misleads people and gives false hope.
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Makarus
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Registered: 25th Jun 02
Location: Nottingham/Derbyshire Boarder.
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AshMan2 people are right, you did read the terms and conditions and knew what was going off at the time. If you didnt understand something then that isn't an excuse, you should have asked and not signed until you were sure.
On the other hand you are onyl supposed to be offered finance based on age, credit rating, yearly earnings and such like. It appears that they have allowed you to have finance above what you should realistically be having, and seen as you cannot afford it then it has proved the matter. Why you got finance on a 16K car when you were only on 6k a year shocks me, didnt you think.
Remember alos the more you borrow the more interest you have to pay.
You were defiantly at fault for agreeing, but they were also at fault for supply you with an unreasonable contract.
For example if you went to buy a house and needed a mortgage then they would give you a mortgage that is 3 times more than your yearly pay to be paid back over 25 years, it cannot be increased, thats the rule, it makes it a safe bet that the money is paid back and nobody has any hassle to deal with.
Same works with finance, there is a special formula they use to figure out how much you should be allowed at what rate of interest and such like.
But as I said, definatly your fault for signing something without knowing and actually taking that much debt out at 18, but they were also to blame because they didnt seem to be reasonable about the finance terms and conditions.
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Pete
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Registered: 20th Sep 99
Location: Northampton
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Morally you have a point, legally you haven't.
Many finance companies don't even ask for details about income etc. - it's up to the customer to be responsible as to what they borrow.
The 3x salary rule for mortgages isn't set in stone - some offer more than this now. As for saying that finance companies use a formula, this is true for some, not for others.
At the end of the day - you knew what the deal was - and you agreed you understood it by signing it.
People get screwed on finance every day - go into any store and take out finance or get a store card - you're paying 29% APR here often - it's daylight robbery but people are happy to agree to it.
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Makarus
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Registered: 25th Jun 02
Location: Nottingham/Derbyshire Boarder.
User status: Offline
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Well I was going on the basic rules Pete. I know there are variations for certain companies but that is a basic rule to follow if you need a clue on how much you can borrow and such like.
Yes, you were foolish to sign if you weren't happy but you may well have been mis-sold finance, which is a crime.
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Pete
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Registered: 20th Sep 99
Location: Northampton
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Not a crime, as it's not a criminal matter, it's a civil matter.
I can't see the part that mentions mis-selling though - other than the PPI - but again smallprint on the document would mention the conditions - which legally you are deemed to have read.
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Makarus
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Registered: 25th Jun 02
Location: Nottingham/Derbyshire Boarder.
User status: Offline
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It is a crime, if you are miss sold finance then you are classed as being fraudulently sold a finance policy. So it becomes a criminal matter yet is normally kept out of court because severity is normally low and companies are willing to sort it out.
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AshMan2
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Registered: 13th Feb 03
Location: Doncaster
User status: Offline
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I agree I signed and messed up on that part. Yet I believe they took advantage of my young age and myself being naive. For example, there are 3 types of Payment protection available I have since found out, I was only told of the most expensive one. Yes I should have known the fact the payment protection was useless to me before I signed the agreement but they knew it was aswell, but were more than happy to sell it to me.
I had a lengthy conversation with the sales manager at perrys vauxhall today who promised me he would give the matter his full attention has he agrees I have been treated unfairly.
At the time, I was young, didnt know what I was doing and I am paying now for that but im sure somewhere along the line, I have been ripped off and they will have to do something about it.
I will definitely learn from my mistake as I am now effecively blacklisted anyway as I have fallen behind with payments etc which basically rules out me getting finance for anything for the foreseeable future!
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Makarus
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Registered: 25th Jun 02
Location: Nottingham/Derbyshire Boarder.
User status: Offline
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You were foolish. You should have been more carefull. Ignorance is not and excuse.
Yet like I have said, they should have made sure you were in full possesion of all the facts regarding the finance agreement.
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viera
Member
Registered: 26th Oct 02
Location: 2nd Star to the right & straight on till morn
User status: Offline
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God we sound like our parents, we all live and learn by our mistakes. Good luck with it AshMan2.
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d0gz_bollox
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Registered: 8th Apr 02
Location: Walsall
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shouldnt of brought a crappy car
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AshMan2
Member
Registered: 13th Feb 03
Location: Doncaster
User status: Offline
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Had a meeting with a solicitor today about everything. He reckons I have a good case with the payment protection.
The dealership knew it wouldnt be any good to me as I had only been in work for less than 3 months (6 months it says u have to be in the agreement) They declined to tell me this even though I should have known myself, they shouldnt have sold me it. He seems to think I should get this cancelled altogether and have everything I have paid backdated.
He is also very surprised that at my age, being only just 18 I was able to get a loan for almost £16k earning 6k a year with NO credit history behind me.
He contacted the finance company black horse who said they would not lend someone that amount in that situation, which leads me to think that Perrys where I got the car from have submitted false information to the finance company.
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d0gz_bollox
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Registered: 8th Apr 02
Location: Walsall
User status: Offline
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lol when I was 18 I couldnt even get a store card in river island 
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OFcorsa
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Registered: 6th Jan 03
Location: Cheltenham, Gloucestershire
User status: Offline
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If it does go to court get your lawyer to use the chewbakker defense....It got OJ Simpson off (1st time round). Good luck
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Plymouth_Corsa
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Registered: 23rd Sep 02
Location: Plymouth Drives: Carzone Corsa
User status: Offline
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When i was 18, i got 2 credit cards and a brand new saxo vtr on finance, that came to about 15k, if you have no credit rating, some companies are willing to take a chance, if you ask for the money, be prepared for them to ask for it back....finance is offered to anyone over 18 subject to acceptance, once you sign the paperwork you are legally bound by its agreements, as for a court case, your solicitor would think you have a good case, because he's getting paid for the time he puts into the case! Same with citizens advice - they just want to get you to beleive that you can fight them, but i doubt you'll win.
Your paying your solictor how much to sort this all out for you, wouldnt this money be better spent on outstanding finance on the car?! Just a thought.
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