Early settlement.

rairb1 · #1 (**permalink**) 03-07-2008, 01:11 PM

I purchased a car from Arnold Clark on the 28/1/2008. And rather than wait for my personal loan to come through the salesman asked if I would take out their finance which would allow them to reach their targets. I was assured by the salesman and his boss that as soon as I recieved the paperwork and as long as I hadn`t made any payments I would be able to ask for a settlement figure and all I would need to pay would be the sum financed. The sum financed was £7065.
So I recieved all documentation for the finance agreement from Fortis on the 25/2/2008 (amount financed was £7065) I requested an settlement figure that day via an e-mail and recieved the settlement figure on the 28/2/2008 via the post, this figure was for £7065.94. I don`t know where the 94p came from. So I settled the amount in full on the 3/3/2008 via the phone and recieved a reciept for this the next day.
Today 7/3/2008 I recieved a letter from Fortis saying that I owed them £245.13 and if I didn`t pay then the debt police will be after me.
I was told in one of the many phone calls today that I have had the car over a month and it is the first months payment that I have to pay them. It didn`t seem to register that I only recieved the paperwork on the 25/2/2008. All I kept on getting was an apology for the paperwork being sent out a little late. Where do I go from here? Who is right. Who is wrong. Can anybody offer advice.

Regards Scott

brian · #2 (**permalink**) 03-08-2008, 06:15 AM

I think you're absolutely wrong to rush into helping a salesman achieve their targets, especially with the rates and complications relating to financing from a car dealer.

The question I'm not clear on is whether at this stage Fortis believe you still owe them money?

If so, I would personally go back to the showroom, explain the situation, and insist the salesman corrects the issue. If no joy, insist on seeing the manager.

Key pointer for you is that if Fortis are wrong, it may help clear up the issue. If Fortis are right, you may be able to claim that the finance was mis-sold to you - which should hopefully spur Arnold Clarke into correcting the issue faster.

Keep us updated and I'll try to look into the details of such arrangements and try to provide a more useful answer on your circumstances.

BillCollector · #3 (**permalink**) 03-10-2008, 12:27 AM

well unfortunately you were screwed. It appears that you are being charged for the monthly payment/interest from the period you got the car and until you paid it off. Sometimes settling involves a processing fee which may also be what you are being charged for. Unfortunately there isn't a lot you can do to get out of this. Disputes usually take longer to solve than it takes to get out of hand and cause irreversible damage to your credit. My advice is to pay them and be done with them. Chalk it up as 'lesson learned'.

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