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Sue Car dealership for two loans in my name [ruined credit]?

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
I bought a car through a car dealership and got a loan as usual thru the dealer. Happy with my new car I left the dealer. About 2 months later I receive a phone call from another bank asking me why i haven't paid my bill and they are sending someone to repossess my car. Not aware what was going on, I called the dealer and they did not call me back for days. When they did, they had no resolution.

To make a long story short, I had 2 loans in my name for the same car. After about 6 - 9 months of badgering with the dealer to sort this out, they tried to pay this other loan off which they took out in my name. This error has ruined my credit score. The problem is now I get a call [1 year later] from the same loan provider asking me why I have not paid the balance. There is still a balance on the loan which was taken out in my name incorrectly. I have tried to call the dealership but nothing.

Can I sue? Any help appreciated. What type of lawyer would i call if i can sue?

Thank you for all your replies! Thanks alot!

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I assume that you are in England or Wales.

    This is a complicated thing but it isn't a case of 'suing' someone. You need to complain in writing to both the car dealer and the lender who you do not believe should be owed money. You should explain what has happened and ask for the matter to be rectified, including removing the default record from your credit reference files.

    If this does not happen, you can complain to the Financial Ombudsman Service. FOS are an impartial and independent organisation who will decide whether the dealer and the lender have behaved properly. You don't need a solicitor to complain to FOS. FOS can deal with the lender (as they're a lender under the Consumer Credit Act) and the dealer, as the dealer is a credit broker.

    I'd suggest you seek specialist money advice from your local CAB or similar organisation, but basically you need to complain in writing and see what happens.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I would have to agree with Arctic Roll. Generally one should only seek to take legal action where there has been some kind of loss. The purpose of suing a person or organisation is often so that you can be put into the position you would have been in had you not been wronged (or as close to as is practicable under the circumstances).

    This is mor of a matter for the Financial Ombudsman Service and possibly the Information Commissioner if they continue to hold incorrect information about you (breach of Data Protection).
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Hey there johnsterwen,

    This seems like an annoying situation. The car dealership took out a second loan against the same car - were you aware of this? If you did not know, this does not seem right at all.

    Like ArticRoll says you should put your complaint in writing to the car dealership and the loan provider stating that a second loan was taken out in your name but that you did not authorise this.

    You can also obtain a credit check for yourself to see what loans have been taken out in your name. For example Experian offer a free credit report service.

    As Arctic Roll and Avizandum have suggested you can make a complaint to the Financial Ombudsman . They are the official independent expert in settling complaints between consumers and businesses providing financial services. You can call their helpline on 0300 123 9 123 (8am to 6pm, Monday to Friday). They also offer a call back service. If you do decide to complain to them you will need to complete their complaint form and then send it to them.

    If you feel that the car dealership acted fraudulently or just like more information about whether they have committed fraud; you can call the National Action Fraud helpline on 0300 123 2040. You can speak to a fraud specialist. The service is run by the Government's National Fraud Authority.

    I hope this helps and things get sorted for you soon.

    :)
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