I recently purchased a new car by finance. However I have encountered a couple of after-sale issues.

My previous vehicle, was still under a Hire Purchase agreement with Fiat Auto Financial Services, however I had reached the threshold whereby I was entitled to Voluntary Termination of the agreement. I therefore, in essence, had no part-exchange and entered into a new agreement with GE Finance, via Stoneacre, to buy the new vehicle.

I was told by GE Finance to simply cancel my Direct Debit, inform Fiat Auto Financial Services of my Voluntary Termination, advise them that the vehicle was in the care of GE Finance via Stoneacre, and they would look after the rest. I would not have to make any more payments on the old agreement, and I would be contacted by post with details of the new agreement. I was therefore able to drive away within hours of entering the showroom, leaving behind my old vehicle.

In the weeks since I have followed the advise; I informed Fiat Auto Financial Services straight away of my intention to Terminate my agreement for my old vehicle, as well as promptly completing and returning the relevant documentation (registration document) – both sets of correspondence were sent via recorded delivery to ensure no delay. However, Fiat Auto Financial Services have since contacted me to advise; (i) I must make this January’s payment of £116.92, and possibly next February’s payment for the same amount (on top of the finance payments agreed on the new vehicle) (ii) I have also incurred a charge of £26.00 for late payment, and if this is not settled by my next payment I will incur the same charge, (iii) failure to make these payments may affect my ability to gain credit (including mortgages) in the future, (iv) the fact I have left the vehicle in your position may jeopardise my right to Voluntary Termination.

As a company governed by the FSA I feel I’ve been so poorly financially advised. I have now found myself in a position where I will essentially be paying for two cars, one of which I am struggling to gain any sort of after-sale customer service, and the other I do not even have in my possession. It feels to me that the customer service stopped the second I signed the finance agreement.

Is there anything I can do? I feel I have been so naïve. Please I need some help to rest my mind.

Thanks for reading