Thread: yes car credit

hello all,
Just a bit of advise please.

A friend of mine bought a car from yes ! in 2005, as she needed a car and couldn't get credit elsewhere. She took out mechanical Breakdown Cover, and GAP cover. Three and 1/2 years into the loan the car went caput and the engine went. She tried to claim for the car with the breakdown cover she had taken out in good faith, only to be told that it was no longer valid as it was only over three years. She is left with a car that doesn't work and still paying for the loan and insurances that are not valid, plus interest at a shocking 34.9%apr.
As she is stuggling to meet payments she approached them to ask for help only to get treated like scum, she came away feeling betrayed and helpless.

I've told her to send a SARS request and log her calls of harrasment !

Anything else she can do, as i've not dealt with car finance companies before ?

Perhaps look into the legal forum on the issues of useless Breakdown Cover. The more areas looked at the more help will be forthcoming IMO

She gave an old car as deposit (only got £200 for it). Insurances were nearly £1000, after interest added close to £2000. Then she had gap cover and Breakdown Cover which came to about £1100.

I've told her to send a sars as she has missed a few payments aswell.

As YES is no longer a company where does send it to?

the payments are going to direct auto financial services. She received a default notice this morning costing her another £15 for the privilage.

Have advised her to ring them and again tell them that she is struggling to meet their high payments, to see if they will compromise. Asking for the name of the person she spoke to, to name and shame if all else fails.

Last time she phoned they wouldn't help her, using bullying tactics to make her pay. Surely there is a law against this sort of thing.

Thanks will do. I had a car on finance but cannot remember where any paperwork is. It was with network q and i gave it back in 2002 i do recall PPI on there and had to pay a fee to give back the car. I found a letter to a city capital from around the time i gave it back,any ideas if thats who vauxhall used back then?

here is the credit agreement, also found this, don't know if its helpfulagrrement.jpg

IMG_0001.jpg

Originally Posted by postggj

sorry,its to small

upload with out thumbnails option on the upload link to message boards

Oh i know, my stupid computer rrrrrraaaaaaahhhhh it keeps doing really random things and freezing at crucial moments, i just pushed all the buttons and thats what it did, will amend no probs

Long story short my computer has had it and wouldn't download CA to CAG so i typed it for you to have a look at. All wording is the same.
Key financial information
(a) Vehicle (b) Insurance premiums (c) total
Amount of credit £5200.00 £995.0 £6195.00
Duration of Agreement 48 months commencing on the date of this agreement
Total amount payable £9032.16 £1928.00 £10960.16
By 48 repayments of £188.17 £36.00 £224.17
The first such repayment(s) being payable one month after the date of this agreement and subsequent repayments being payable on the same date of each successive calendar month (or the next working day if there is no such at or that day is not working day).
APR 34.9% APR 34.9%
Other financial information

Vehicle make : xxx Vehicle Insurance Premiums
Vehicle model : xxx £650.00 Mechanical Breakdown Cover
Colour : xxx £545.00 GAP Cover
Reg no : xxx
Date of 1st reg : xxx Total
Cash price £5200.00 £1195.00 £6395.00
Advance payment £0.00 £200.00 £200.00
Total charge for credit £3832.16 £733.00 £4565.16
Made up of interest £3532.16 £733.00 £4265.16
admin fee £300.00 £300.00
Rate of interest 16.98% per annum 18.42 per annum
At the date that this agreement is made, interest is calculated on the amount of credit provided under this agreement over the term of the loan at the interest rate specified above and added to the amount you owe us.

KEY INFORMATION
Payment of a claim under the insurance of the vehicle in respect of the vehicle is assigned to us under clause 3.1.3(2). Payment of any refund under an insurance is to be paid to us under clause 4.3.1 and all insurance benefit under an insurance will be paid to us under clause 4.4.
You have no right to cancel this agreement under the consumer credit act 1974, the timeshare act 1992 or the financial services (distance marketing) regulations 2004
You can settle this agreement at ant time by paying all outstanding amounts. For example, if you wish to settle this agreement when either a quarter of the term has passed, half the term has passed or three-quarters of the term has passed you will be required to pay:
Vehicle insurance premiums total
Quarter of the term £5200.00 £884.99 £5510.25
Half of the term £3414.71 £672.48 £4187.19
Three-quarters of the term £2016.61 £385.83 £2402.44

In calculating the amounts shown no account has been of any variation which might occur under the agreement and the amounts are accordingly only illustrative.

Default interest is chargeable under clause 7.2.
You must pay our reasonably incurred costs and expenses in enforcing our rights under this agreement in accordance with clause 5.1 of the terms and conditions of this agreement.
MISSING PAYMENTS
Missing payments could have severe consequences and make obtaining credit more difficult.
IMPORTANT – PLEASE READ CAREFULLY TO FIND OUT ABOUT YOUR RIGHTS
The consumer credit act 1974 lays down certain requirements or your protection which should have been complied with when this agreement was made. If they were not, the creditor cannot enforce this agreement without getting a court order.
The act also gives you a number of rights
1, you can settle this agreement at any time by giving notice in writing and paying off the amount you owe under the agreement which may be reduced by a rebate. Examples indicating the amount you have to pay appear in this agreement
2,If you received unsatisfactory goods or services paid for under this agreement you may have the right to sue the supplier, the creditor or both.
3,If the contract is not fulfilled, perhaps because the supplier has gone out of business, you may still be able to sue the creditor.
If you would like to know more about your rights under the act, contact either your local trading standards department, or your nearest citizens advice bureau
TERMINATION. YOUR RIGHTS
You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the amount payable under this agreement that is £4516.08. If you have already paid at least this amount plus any overdue instalments and have taken reasonably good care of the goods, you will not have to pay anymore.
REPOSSESSION YOUR RIGHTS
If you do not keep your side of the agreement but you have paid at least one third of the total amount payable under this agreement, that is £3010.72. The creditor may not take back the goods against your wishes, unless he gets a court order. If he does take the goods without your consent or a court order, you have a right to get back any money that you have paid under this agreement

This is c conditional sale agreement regulated y the consumer credit act 1974 Sign only if you want to be legally bound by its terms
Then she signed
I wish to purchase payment protection insurance X Mechanical breakdown insurance X GAP Insurance
I understand that I am purchasing the products ticked above on credit provided by you and that the terms relating to the credit for the product can be found in clause 4 and 6 of the terms and conditions of this agreement
Then she signed

Thanks for looking

Thank P

She's sent off for a sars from them, they have about 33 days left to comply, Whats the next move ?

I know she owes them at least one month, they also keep sending her letters that cost whopping £15, must be gold paper or something !!!

Its a default sum notice under s86E of the consumer credit act 1974.

Its just reminder letter which they've charged £15 for the privilege

Another £25 default notice saying she has till 5/7 to pay up full amount or they'll do all sorts. Typical threats debt collecters, removing the vehicle, court action.

just a quickie, is 34.9% APR unreasonsible lending? heard somewhere that it is?

Also am i right in thinking that they cannot take deposit off insurance premiums and that they can't charge interest on those either?