The Car Finance Company - Front-loaded interest not stated in T&C's

[stenson19]

In 2012 I took out a finance agreement with a company called "The Car Finance Company".

 

At point of sale i asked who credit agencies they report to as it was important to me

they reported to all three as i was trying to rebuild my credit.

 

The sales guy said yes and showed me the wording of the T&C'c which say they report to the "Agencies".

 

I rang them the other day for a settlement figure and

 

it was more then the initial loan amount itself and

 

i asked why that would be considering i was 15 Months into a 36 month agreement and

 

they then dropped the bombshell that the interest is front loaded.

 

I got out the contract and read the terms and conditions and it states all the normal things i would expect

such as the loan amount,

total amount repayable,

internist rate, APR etc...

. but no where does it say or infer that the interest is front loaded.

 

I also checked with the 3 credit reference agencies to find that they done 3 credit

search applications for 1 car (1 application) and they only report to only call credit.

 

I then rang them today and spoke to a manger who said that the interest being front loaded

does not have to be in the terms and conditions

which i found absurd and that as i am now committed to the contract

they wont do anything about the extra credit searches

or the fact that i was also lied to a point of sale as they don't report to all 3 credit reference agencies.

 

I can post the terms and conditions if needed but I would like some legal finesse.

[AndyOrch]

The interest would be shown on the agreement (in the calculations) prescribed terms....not in the T&Cs.

 

Regards

 

Andy

[stenson19]

Sorry I should me more clear,

 

I have checked all the paperwork I have, including the prescribed terms.

 

Everything I would expect is listed here such as

amount of credit,

total amount payable,

APR etc..

 

When it comes to interest tho it only says interest is calculated at 15% per annum and is applied on the date the agreement is signed.

 

Surly if the loan is front loaded it would have to say in a legal term that the 1st payment covers only interest

and then as payments continue you are paying less interest and more of the initial credit amount.

[AndyOrch]

Well yes its should be in the calculations within the Credit Consumer Agreement... amount of loan £x + total interest= £ Total credit =less any deposit/part exchange etc etc....

[stenson19]

Thanks for your reply again Andy,

 

All the figures are correct on the terms such as monthly payments, ammout of loan, APR etc...

.. But no where, anywhere within the paperwork i was given does it say

or infer in any legal term as far as I can see and

I again double checked it all last night that the interest is front loaded.

 

If i knew this was case I would of disputed it at POS as i knew

i would be in a postion 12 to 18 months into the agreement to clear it

and now they want more then the initial loan amount to clear the remainder of the a/c.

 

If needed I can post a copy of the prescribed terms here and will just remove all my personall data to help calrify.

[AndyOrch]

As far as Im aware stenson all car finance and fixed loans are front loaded interest...only credit cards are monthly variable.

[theoldrouge]

what type of agreement is this? there should be examples given of early repayment given within the t&cs at 1/4,1/2 and3/4 through the agreement