First Response Finance

[Jason751]

Hi, as naive as I am to the legal and mechanical sectors, we still feel we have been and are being unfairly targeted by First Responce Finance.

 

In April 2012 we went and looked at a car for our family and stumbled across two cars at a used car dealer, a Renault Grand Scenic and a Vauxhal Zafira. The Scenic being electronic and the Zafiri not, boy do we wish we went with the Zafira now. We are a new working family with a 10 month old so I'm sure you can understand we are not made of money, since buying the second hand Renault through finance I have had to take out a loan to pay out £600 to fix problems because they're not mechanical problems.

 

Now here's where it gets frustratingly surreal, the car is both electronic and mechanical and the current problem we are having is the Parking Brake and Wiring.

 

We have been told the car needs a whole new parking brake and wiring installed, the parking brake is both mechanical and electronic and its going to cost £700 to get the job done. As it is the car is only worth about £1700 if there were nothing wrong with it.

 

First Response Finance are saying that they won't pay for the Parking Brake and wiring to be replaced because it isn't in their list of mechanical parts. A parking brake not in their list of mechanical parts covered?

 

Since day one of taking our hard earned money they have not helped us once in any way what so ever, they refuse to take the car back without us paying the rest of the amount owed.

 

We have no money left and a car that we can't use because its failed its mot on the above issue and the tax runs out in a month. Is there anyone that can help or at least give us some advice please. Starting to feel like I've let my wife annd son down because its my fault she chose this stupid electronic car.

 

We've never missed a repayment.

Edited April 18, 2013 by Jason751
added more info

[Conniff]

First Response Finance are one of the rip-off companies, the sort who take advantage of someone not being able to go to their bank for a loan so hook you in with easy finance and charge the earth in interest.

 

Can I take it this is a loan and not a hire purchase agreement Jason ?

 

did they send you some sort of list of what they class as mechanical parts ?

[Jason751]

Hi Conniff, It was our only way of getting a vehicle which we use for work and child, we had no other option but to go with these people unfortunately.

 

it is HP I believe, they bought the car from the dealer and we pay monthly which includes GAP & Vehicle Warranty Insurance. Almost three times what the cars worth and we are being forced to pay to fix the car completely for as much as the car is worth.

[Jason751]

They never sent us a list, only the credit agreement.

[Conniff]

Can you check the agreement to see if it is definitely HP as that can make a big difference.

[Jason751]

It says:

 

The Type of credit: Credit provided under Hire Purchase Agreement

 

How and when credit will be provided: We will purchase the vehicle from the dealer by paying them the amount of credit on the date we sign the credit agreement. You may then collect the vehicle from the dealer. We will hire you the vehicle, and you will have an option to purchase it.

[Conniff]

Great, so how many payments are there to be made and how many have you made ?

[Jason751]

Total credit is: £3267 Optional Insurance total is: £717

 

41 monthly payments of £127.66 and 1 final payment of £202.66

 

Final Credit total is: £5436.72 Final Optional Insurance total is: £1093.26

 

Our first payment was April 2012

[Conniff]

Ok - first off, this optional insurance.

 

Were you asked if you wanted this?

Were you informed there were other companies that you could go to for insurance?

Did they tell you that you had to have the insurance ?

[Jason751]

We were offered the insurance and took it because we were told it would protect us, like for this situation and other similar past situations where the car needed fixing.

 

We were not informed of any other companies.

 

They didn't say we had to have the insurance, just advised it would be beneficial. Turns out it isn't benefical because everything that had gone wrong is apparently not covered.

[Conniff]

So are you saying this is a warranty against breakdown?

 

If so, what does it say it covers? It would be really nice if you could scan the whole document but block out your personal details, (not with a black pen or tipex) and then post it up for us.

 

As for the car, it's not yours, it belongs to the finance company who are just hiring it out to you, they must carry the can for the problems as well as you and the seller.

[Jason751]

Ill get to work on uploading it now, please bare with me

[Jason751]

Second attempt now in pdf format.

[Jason751]

Hi again, Is there any hope for us?

[Conniff]

You must keep in mind that this is 'their' car not yours and they do have a responsibility. They bought it not you, if it's not all it's cracked up to be, that is their fault, they could have sent an engineer to inspect the car before they handed over funds to the dealer.

 

But they don't see that, they just try and deny it has anything to do with them because all they see is pound signs, they prey on those who cannot get credit with the banks because they know they can charge the earth as the person is desperate.

 

Well these gutter companies can't just shirk their responsibility, they can't just sit back and take your money, the regulations won't let them.

 

Write by recorded letter laying out the problems and ask them what they intend to do.

[Jason751]

I've just had a full blown argument with them on the phone, they stated that you're wrong about them being partly responsible and advised that we should pay for the problem to be fixed because we have had the car for 12 months now.

[Conniff]

Nice to see you won't take crap, but you must not talk on the phone to these type, letters only.

 

I will dig out the regulation and you can tell them where to shove it.

 

You can stop paying anyway when you have reached the half way point and just hand the car back to them.

[Jason751]

Thanks I hope the regulation helps because, by my calculation we are only a quarter the way to what we owe them. These people will not reply, I spoke to three other people who are having problems with them and none of the two that have tried have received anything in writing back unfortunately.

 

I've sent our story to BBC Watchdog and I'm currently looking for a solicitor who can help.

 

Edit: just waiting for call back from solicitor but still appreciate all the help you can give.

Edited April 23, 2013 by Jason751

[Conniff]

Don't pay a solicitor until you have worked through all the things available to you, only when it gets really deadlocked you might need some advice by a trained professional.

 

It matters not if they refuse to answer your letters, the law says that it is deemed to have been delivered 24 hours after posting and that goes even if they refuse to sign for a recorded delivery.

[Conniff]

This 'optional' vehicle warranty that is on the agreement:

 

Were you asked if you wanted to take out a warranty?

Who is the warranty with ?

Were you sent the terms and conditions of the warranty?

Is there a list of what is and what isn't covered by it?

[Jason751]

This 'optional' vehicle warranty that is on the agreement:

 

Were you asked if you wanted to take out a warranty?

Who is the warranty with ?

Were you sent the terms and conditions of the warranty?

Is there a list of what is and what isn't covered by it?

 

Yes we were asked but no we were not sent a list of what is covered, terms and conditions came on the same paper as the pre contract and we received nothing else.

 

The warranty is through both First Response and Axa the under writers.

 

We have an appointment on the 30th with the solicitor for 1 hr free just to get their advice on other possible options.

 

Also waiting for a return call from First Response after I let them know about me intending on fighting this.

Edited April 23, 2013 by Jason751
spell correction

[Conniff]

So there is over a thousand pounds of insurance you have paid for, you have no paperwork about it or policy and you have no idea what it's for or what it covers.

 

This is mis-sold and you must claim it all back. Do not be fobbed off with any rubbish this gutter company tries to tell you. You will also add 8% interest to the payments you have made on it so far.

 

Send them a formal complaint and tell them it has been mis-sold and you want it back. We will take this all the way to the ombudsman if they refuse.

[ims21]

Hi

 

Responding to conniff's SOS

 

If you are going to reclaim this insurance then you will need to prepare a spreadsheet showing how much you are claiming back. This is the one to use

 

StatIntSheet v101.xls

 

The payments towards the insurance and the associated interest are £26.03 per month so in the spreadsheet list each payment you have actually made. The sheet will calculate the 8% interest on top.

 

The remainder of the agreement should be restructured to remove the future insurance payments from it.

 

When done you will need to send a print of the spreadsheet to the lender and a letter detailing your reasons why you feel it was mis-sold. This isn't a PPI claim so no fos questionnaire is needed on this.

[Jason751]

Thanks for all the info, I will be sure to make good use of it all should it get that far, if the finance company don't pay out for the car to be fixed or take the car back and rip up the contract then ill look to these other options.

 

Waiting to see if Watchdog are interested and contacted the Financial Ombudsman for info.

 

Ill keep you updated!

Edited April 23, 2013 by Jason751

[BreadAndButter]

Im googling this subject as I was aware also the option on the agreement to hand back the car

 

However ,my question, now my credit file is clean after years of issues resolving, wil lthis hurt it?

 

Also, being an alfa romeo, the dashboard is like a christmas tree... this is my main reason for wanting to hand it back, too many failures. its cost thousnads in repairs and i have ovr £1700 left to pay

 

I could, now i have credit, pay the settlement figure and then sell the car, an option to me without the fuss or hassle?

In the agreement it says i have to put right anything i have failed to maintain

I can see them going "the aerial is missing, £100, it needs a new ecu, £1000, wheel bearing squeeks, £200, upper wishbone needs replacing, £200 " Then im without a car, finance and a big bill :/

 

should i keep it and pay the next 15 months hoping it wont break down again? Which i guarantee it will... Im already at the RAC's callout limit, breeching their fair usage policy!!

 

p.s. Jason, how did you get on? its been a few months since?