Hi all. I've posted this in the loans forum incorrectly, I'm hoping this is a better place for it
two and a half years ago I took out a 3 year PCP on a Mercedes ML. I can't remember exactly how the deal stacked up in terms of deposit etc, but my monthly payments were fixed at £352 a month for 3 years. I've never had cause to look for credit in the intervening time, but I recently got a credit expert account and looked at my credit report. I was shocked to see that my credit rating was bad, with the reason being that my unsecured lending was too high.
Looking into this further it became apparent that Daimler Chrysler Financial Services (the official name of Mercerdes Benz Finance) had registered the entire value of the vehicle (not just the value of the PCP agreement) as an unsecured debt. Currently this is £27,000.
2 questions therefore....
1. Is it right that the entire value of the vehicle should be registered rather than the value of the PCP agreement
2. Should this be listed as an unsecured debt? The loan is secured against the vehicle- so I can't see how this could be correct.
Any answers much appreciated.