PPI on Car Finance - Dealer / Broker or Finance company

[pussycat10]

Have found out that a friend had PPI applied to a car finance dealer without their knowledge.

 

I have asked several times and they are addamant PPI was never mentioned.

 

I SAR'd the finance company who have been very vague in what they sent back,

i.e., just an account statement and screen notes.

There is no mention of the PPI being added nor any paper work whatsoever about the PPI.

 

The only element is several thousand pounds added to the agreement at the start.

 

In all honesty , the paperwork is a mess as nothing ties up , there is just this discrepancy of the PPI money being added without any paperwork or mention of it.

 

The finance company have written stating the amount of PPI added but have said this was sold by the broker and as such the complaint is with them.

 

Is this correct or are the finance company just giving the run around to us ?

 

Second question, if it is the broker, do I still go for the contractual interest on the amount or have I lost that opportunity as it was the broker and not the finance company ?

[dx100uk]

you can only charge cont int on credit cards

 

loan PPI is statint 8% only [the first spreadsheet].

 

the finance company IS your target. under section 56 of the CCA.

 

who is it?

 

dx

[intend]

Interesting post dx as in past advised it was the broker - which is what I got back from Welcome when tried to claim - "not us need to contact your broker" Will need to look at relevant section of CCA as all new to me.

 

Intend

[dx100uk]

GE Money are the worst!!

 

it may well rol out that is some cases the broker IS the target

 

however it always best to target the OC and 'expire' all routes first

 

for ref:

 

sect 56 says:

 

Consumer Credit Act Section 56. refers...

— (1) In this Act “antecedent negotiations ” means any negotiations with the debtor or hirer—

(a) conducted by the creditor or owner in relation to the making of any regulated agreement, or

(b) conducted by a credit-broker in relation to goods sold or proposed to be sold by the credit-broker to the creditor before forming the subject-matter of a debtor-creditor-supplier agreement within section 12(a), or

© conducted by the supplier in relation to a transaction financed or proposed to be financed by a debtor-creditor-supplier agreement and “negotiator ” means the person by whom negotiations are so conducted with the debtor or hirer.

 

dx

[intend]

Sorry but legal speak not my strong point but in essence the contract is with the creditor rather than the intermediary??

[dx100uk]

no

 

the OC is RESPONSIBLE for the actions of any body down the line.

 

dx

[intend]

Sorry by the OC do you mean the Original Creditor (eg Welcome or GE) or the broker that sold the policy??

 

Have seen on another site a victory against the underwriters which would suggest the chain of mis-selling goes right back.

Edited November 9, 2012 by intend
add to it

[dx100uk]

Original creditor

 

there are victories here with both

 

but always expire the oc first.

 

and get a final response

 

and not the 'please consider this as our'

 

thats a con to fob you off

 

dx

[intend]

So advice is chase Welcome not the broker??

[dx100uk]

yes

 

dx

[intend]

Pussycat - which finance company is it??

[pussycat10]

Apologies for the slow reply, have been out of the country. The company is British Credit Trust. They have responded again claiming it is the broker who is at fault and any claim should be against the broker. Thet have also quoted s.56 as their get out of jail card !

 

I need to write further letters etc but they have claimed that was their final response so assume now the option is to do LBA then court.

[dx100uk]

S56

 

what this bit that CLEARLY states THEY ARE responsible for the actions of their agents.

interesting

 

Consumer Credit Act Section 56. refers...

— (1) In this Act “antecedent negotiations ” means any negotiations with the debtor or hirer—

(a) conducted by the creditor or owner in relation to the making of any regulated agreement, or

(b) conducted by a credit-broker in relation to goods sold or proposed to be sold by the credit-broker to the creditor before forming the subject-matter of a debtor-creditor-supplier agreement within section 12(a), or

© conducted by the supplier in relation to a transaction financed or proposed to be financed by a debtor-creditor-supplier agreement and “negotiator ” means the person by whom negotiations are so conducted with the debtor or hirer.

[pussycat10]

So in essence it would be the broker that has sold the product to the creditor who has then sold the product to the debtor ?Which then forms the Debtor / Creditor agreement ?

 

Is there any case law on this as it could be interpreted both ways.