Member Since: 07 Dec 2004
Location: Bramhall
Posts: 26741
Land Rover finance cock up?
I just got a very interesting letter in the post today. Blackhorse who I financed my second D3 through (blackhorse operated Land Rover Finance back in March 2009 when I bought the car) have just written to me to say that they messed up.
By failing to tell me that I had a right to cancel my agreement at anytime, they are now not entitled to keep any of the interest I paid during the period that they failed to tell me this. Therefore I can expect a 4 figure cheque in the next 7-10 days, and I should pay it in to my account as soon as possible.
To say I am shocked is an understatement, the amount they want to give equates to 50% of the interest I paid on the car. They reiterate that the loan is paid off and I need to do nothing else except pay this cheque in when it arrives. No emails, no weblinks to click, no pin numbers or Nigerian vicars that want to befriend me! So I have to presume its genuine!
Anyone else got one of these, there must be a few of us that took out LR finance back in early 2009.
My other thought is that if its this easy to get money back, and they are encouraging me to pay the cheque in as quickly as possible, are they hiding a further liability from me? and by me paying in the cheque, I basically accept their offer and forgo any further claim. I have to say, this has come out of the blue and I was not expecting anything.
17th Nov 2014 6:29 pm
DSL Keeper of the wheelie bin
Member Since: 11 May 2006
Location: Off again! :-)
Posts: 72883
That's Ice Fest Norf 2015 fully funded.
17th Nov 2014 6:31 pm
euangibson
Member Since: 24 Dec 2010
Location: Borders
Posts: 11027
They've obviously decided that being upfront with the admission,and recompensing you early,will hopefully fend off a PPI-style stampede......
Oh,and yes,I think by paying the cheque in,I believe legally that means you have accepted their offer....."Better to remain silent and be thought a fool,than to speak out and remove all doubt" ?.....what rubbish...
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17th Nov 2014 6:41 pm
Captain Slow
Member Since: 18 Feb 2009
Location: Herts
Posts: 459
I will be watching this tread as my for the loan for the D3 came to an end in September and I have not heard anything from them.....Prince Harry's D3: G4 factory equipped D3 - expo rack, winch, roof lights, ladder, active locking rear diff, RAI, Melville & Moon seat covers, General Grabber ATs/ Goodyear Duratrac
17th Nov 2014 6:44 pm
DSL Keeper of the wheelie bin
Member Since: 11 May 2006
Location: Off again! :-)
Posts: 72883
Why 50% of interest, not 100%?
17th Nov 2014 6:47 pm
ronp
Member Since: 29 Nov 2006
Location: North Yorkshire
Posts: 15229
Was getting all excited there, then I realised it was your second D3 not your first
[as it may have coincided with my D3 purchase and I to might have been 'quid in'].
Great result though, especially being out of the blue
Oh and here's hoping the 4 figure sum isn't £10.01
17th Nov 2014 6:51 pm
Gareth Site Moderator
Member Since: 07 Dec 2004
Location: Bramhall
Posts: 26741
It basically says that :
"Following a revue of the annual statements(s) of account that we sent to you regarding your agreement with us. We have identified that we did not remind you of your right to voluntarily terminate your contract before completion. We apologise for that omission. The consequence of this is that we are not entitled to retain the interest paid by you after the first incorrect statement was due to be sent to you.
As we are not entitled to retain this interest, we are refunding back to you all the interest relating to and paid by you during the period that we did not provide the correct notice with annual statement(s) Our calculations show that you are entitled to be refunded interest of £xxxx in respect of this period This amount will be refunded to you by cheque within the next 7 1- working days"
17th Nov 2014 6:56 pm
nicedayforit
Member Since: 05 Sep 2011
Location: Beside the Solway
Posts: 369
^ +1
Given that you pay interest on a loan from day 1 of your contract surely the refund should be 100% of the interest. Contrary to what they advise you I would take your time in paying in the cheque.
Their advice to pay in into a bank quickly could well be a ploy to get you to agree to their offer of refund without querying the offer. I would certainly take my time and write to them asking why the refund of interest was not the full amount of interest paid. Any information they were obliged to give you regarding cancellation of agreement applies from the date of your agreement, as does the interest.
Presumably they can substantiate the date from which they are obliged to repay interest paid if it differs from your agreement date.
imo they are trying it on.
17th Nov 2014 7:04 pm
maplecottage
Member Since: 01 Feb 2011
Location: Norfolk
Posts: 3171
One of these days I'll have to try this finance lark.
I can hear my mothers words ringing loud and clear
17th Nov 2014 7:09 pm
Bodsy Site Sponsor
Member Since: 06 Nov 2006
Location: In the Clubhouse
Posts: 21361
It's only interest charged since they failed to notify you of the right to cancel. Presumably your were informed in writing at the time of purchase, so that would be year 1 sorted, perhaps they did for year 2, but not for year 3?Bodsys Brake Bible
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17th Nov 2014 7:41 pm
shaun3192
Member Since: 18 Jun 2009
Location: South Yorkshire
Posts: 68
Hi I also received the same letter last week , I used black horse finance to cover my cash short fall on my first D3 purchased 4 years ago.
I received the cheque last Wednesday and by Friday it was banked
Happy Days ! This will help keeping the current D3 on the road
17th Nov 2014 7:43 pm
Gareth Site Moderator
Member Since: 07 Dec 2004
Location: Bramhall
Posts: 26741
I think your spot on there Bodsy. It does say deep in the small print that I have the right to voluntarily terminate the agreement at anytime after 50% of the loan has been repaid. I think that means that they cannot repossess the vehicle if I have paid more than 50%.
I also seem to recall paying the car off early, so maybe they only got to send me one annual statement.
I can't find the annual statements, so cannot confirm it completely.
Gareth, might be worth asking Al NoDo$h for his take?
maplecottage wrote:
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Member Since: 20 Jun 2012
Location: Boston
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It does sound to me that it is to do with the halves & thirds ruling in the consumer credit act. Once half of the total amount payable has been repaid then you could hand the car to them and walk away (for example if you wanted to change car but we're in negative equity) If they did not advise you that you had reached this point then I suppose the theory is they were still collecting interest after the point where you could have walked away so as they said they are not entitled to keep it. By saying about banking it they are probably hoping that will be the end of it. I doubt that more could be had by kicking up a fuss, it will depend on how the FCA would view the fairness of the compensation, which in this case giving back something that because they didn't advise you of something that you probably wouldn't have done seems fair enough, if that makes sense D4 HSE Luxury
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