A couple taken to court over an
outstanding car loan by a company which had bought some of the
debts of Yes Car Credit have won an out-of-court settlement, after
it was found that a payment protection insurance (PPI) policy,
taken out along with the loan, had been mis-sold.

The Griffiths-Peets, from Manchester, were being pursued by MIM
Servicing LLC, which sought to reclaim the outstanding £6,174
balance of their car loan by obtaining a county court judgment
against them. They were represented by Stephensons Solicitors
LLP.

However, they were able to show in court that, along with the
loan, they had been obliged to take out PPI, which was not added to
their bill as a separate charge, rendering the agreement
“ultimately unenforceable”, said managing partner of Stephensons’
consumer department, Andrew Leakey.

The loan has been written off, and MIM Servicing agreed to pay
the Griffiths-Peets’ legal bills.

Leakey said the case represented just the “tip of the iceberg”.
He added: “There are potentially hundreds of people out there who
have taken out car credit agreements which could be
unenforceable.

“This case could pave the way for hundreds of people who are
struggling to keep up with repayments on credit agreements to find
a way out, if their contract is deemed unenforceable.”

The solicitors firm offers potential clients who want to
challenge a credit agreement a free initial consultation. Depending
on the strength of a case, Stephensons can also represent clients
on a no win, no fee basis.

 

 Motor Finance Issue: 44 – June 08
Published for the web: June 10 08 15:26
Last Updated: June 11 08 11:18