Anyone Been Mis Sold A Credit Agreement

3 years ago i went to a motor dealer and asked to lease a car but they came up with a Lease Purchase Agreement. I voiced my doubts at the time about the possibility of me owing the HP company if i wanted to change my car but they informed verbally this would be ok and in approx 18 months i would be able to change cars without possibly any cost to me. Nearly 3 years later i have a deficit of quite a few thousand. Have confronted them and they offered offered me a deal but i am inclined to try to claim all the deficit, has anyone else done this with any success ? It was all verbal but the dealer has not denied any of the above that was said….

If it is HP you can just give them it back and walk away.

Our company does it all the time.

You did sign the agreement though. Was it a regulated or unregulated agreement?

It was unregulated

Been a while since I was involved in this kind of financing but IIRC it is only under a regulated agreement that you have the option of returning car without incurring further action from the HP Company- and that is dependent on how much of the total amount payable (i.e.cost of car + interest)you have actually paid

It sounds as though the shortfall is due to the difference between the value of your car and the ‘balloon’ payment due to the HP Company? Correct me if I’m wrong

You should check your copy of the agreement you signed to see what rights if any you have, but from what you say it seems doubtful. You could try returning the car and hope that the shortfall is simply written off by the financing company and this will depend of course on how much we are talking.

I would suggest that pursuing the whole deficit with the dealer will prove fruitless – as you say it was all verbal and you have signed a HP agreement.

One other thought-is it unregulated due to the amount or because you bought through a Ltd Company. If the latter, and you have not provided a personal guarantee, you may be able to avoid any personal repercussions.

Also, if you decide to pursue the dealer, be aware that there are two types of leasing agreement. One where you bear the risk of reward and ownership and the other where the finance company does, i.e. Contract Hire.

Happy to discuss this off forum with you if you prefer and you think it might be useful. Email address is in profile

Thanks Silverpigeon would be good to chat further cant see your email address can you drop me a line on damianredman@ntlworld.com. cheers