Thread: British Car Credit - Credit Agreement

Hi all,

Im new today and was hoping someone could advise me a little of one of those life's experiences, never again! I apologise for the length of this message, but i hope somebody can help.

I purchased a car from Renault for £11,133 (cash price) in May 2005, I had to use British Car Credit, due to so much negative equity in the vehicle I was exchanging, funny enough it was a Renault.

I had to take out 2 loans with them? Because the maximum they would lend at the time was £10k (I found this hard to believe at the time, but I continued). So I had a balance payable of £15450 (including all the charges etc) meaning a monthly payment of £259 per month for 60 months. I also had to take a loan out for £1,260 with them with a monthly payment of £21 per month for 60 months.

My payments were also increased by them adding £30.24 for Credit Protection Insurance per month, making the payments to £289 per month. I had no idea until recently that I had been paying this.

It’s always bugged me so much, as I never felt happy with it. Luckily I purchased a car from Mercedes in 2006 and got rid of the whole thing.

However, what im unsure of is that is it strange to have 2 agreements? I asked for a settlement figure and was told in February 2006 £15419.72 was the balance outstanding (originally it was £15,450) therefore no were taken into consideration, they stated at today’s date (February 2006) £9,306.66 was the settlement figure, assuming last payment of £289 was received (this included £30.24 credit protection insurance), strange after looking at it just now! When the amount payable originally was £15450, also why would a settlement figure include insurance?

Likewise for the second loan amount payable originally was £1260, and February 2006 the balance outstanding at today’s date was £1,092 not all payments were taken into consideration and the settlement figure being £750.61

I had never missed any payments, so they couldn’t say it was charges, and still have my credit file for that time to prove this.

One more thing, when I agreed to the finance they faxed an agreement to me at work and I had to sign it and fax it back, just thinking now, should they have an original copy of my signature, along with a proper agreement, rather than faxed copies. The only copy I have is very hard to read, and does not have any agreement number on, just a proposal number.

Please help, ive no idea now if this agreement was really enforceable, and if the Credit Protection Insurance that was never discussed with me. I only have a faxed copy of the main loan and not of the other, I have asked them for a copy of the second loan, a week ago, I have not heard anything yet and they have not cashed the £1.

I want to pass this to a solicitor to have a look and, because I strongly feel that the settlement figures were incorrect, yes I should have notice this at that time. But imp wary of whom to contact in case they charge extortionate fees.

Emma