Thank you for your reply. It is not simply incorrect wording: VAT on static caravans was not introduced until 2012; this caravan was purchased in 2011. At first glance it may seem immoral to attempt to duck out of a £37000 loan and until a few months ago I would have agreed but that all changed when I became the victim of a fraudulent withdrawal from my account: Santander's response was to duck out of their own 'charge back' policy and hit me with the cost of three bouncing direct debits. So no, its not immoral; its justice! ...and it feels good. My view of the banks now is - hit them if you can: nothing is immoral against these corrupt multi nationals. Therefore, my own view is: if the credit agreement includes VAT on goods when VAT was not chargeable, the whole agreement must be wrong and unenforceable. Does anyone know if this is correct.

Hello to everyone, I am a new member and I am interested in other members views on a credit agreement taken out with Santander in Oct 2011. My wife bought a static caravan in 2011; the invoice total was for £37000, which included £31000 for the caravan and additionally, further site costs of £6000. The Santander agreement signed to finance the purchase totals £37000; however, it states that the purchase is for a static caravan: value £31000 plus £6000 VAT. The agreement says that Santander has purchased the caravan on behalf of my wife and owns the caravan until the full price is repaid. My query is about the inclusion of VAT in the agreement and its effect on the enforceability of the agreement. Would they be legally entitled to reposess the caravan if we stopped the payments. I would grateful of any informed views and suggestions as to how to proceed with this.