Part Exed Car

[mrsfoot]

My brother part exed his car four years ago and took what he thought was car loan for new car.

 

He is just arranging a new car and found:

 

1. The previous loan was not a car loan, it was personal loan

2. The current car loan included paying the old finance off. However instead of paying the finance off, the company kept the money, and just returned the car.

3. Brother now has a VT on his credit file, even though he paid the finance off.

 

He has paid the finance for the current car in full. This includes what the finance company was supposed to pay for his old car. The company who arranged this has gone broke so we can contact them to ask how much was added to the loan for clearing the finance.

 

What would you do in this situation?

[mrsfoot]

Unashamedly bumping

[Conniff]

I would send a subject access request to the finance company (£10) and check through all the paperwork received and then make a claim.

He must be able to show there was no outstanding finance.

[raydetinu]

As it was a personnal loan the present car would have been purchased out right from day one.

The money in that case should have been paid to you to do with as you wish, pay off the the old car and purchase the new one.

So the loan co handed all the money to the dealer and you signed over your old car ( with outstanding finance on it ).

What does it say on the loan documents about px car and paying off loan etc.? Did you get an invoice from the dealer?

[mrsfoot]

I will ask my brother to find the documentation..I will scan it up to here for you to look at as I am not sure what I am looking for. Thanks!