Legal Article - Business Law

Hire Advertisements

A Simple hire advertisement can only include as a maximum:

• Name (as on Licence)
• Address
• Phone Number
• Logo
• Occupation

For the majority of motor dealer Intermediate hire advertisements then the following information would be included:

• Name (as on licence)
• Address or Phone Number
• A statement to clarify the customer that a hire arrangement is being advertised
• Deposit (optional)
• Duration of hire agreement (optional)

The statements:

“Written quotations on request”
“Subject to status”
“A guarantee may be required” ( if applicable)

As with Intermediate credit advertisements certain points should be particularly noted:

• The name/address/phone number is not necessary if the advertisements are on, say, a window display or leaflet at the premises.

• No more information than that given above can generally be given in a typical motor dealer advertisements at the Intermediate level. If you wish to include information about the frequency (eg monthly) or the amount of repayments then the advertisement needs to be upgraded to a Full advertisement.

In a Full hire advertisement certain information must be included which, in the case of typical motor dealer advertisement, would be;

• Name (as on the Consumer Credit Licence)
• Address
• A statement to clarify to the consumer that a hire arrangement is being advertised
• Deposit
• Frequency of repayments (eg ‘monthly’)
• Amount of repayments
• Any additional payments/charges and when they are due
• Hire period

• The statements:

“Written quotations on request”
“Subject to status”
“A guarantee may be required” (if applicable)
• Any other restrictions on the availability of the hire

As with credit advertisements the expression ‘weekly equivalent’ or similar should not be used unless weekly payments are provided for under the terms of the agreement.

The preparation and layout of finance/hire advertisements is very complex. 

It is not immediately obvious what information can or cannot be included. The repercussions for the motor trader are extremely serious.

The absence of, or inclusion of one piece of information can mean the difference between a legal and illegal advertisement and therefore a potential fine, which at the time of writing is £5000. 

It must also be said that the detection of advertising problems is extremely easy for the enforcement authorities, since it takes nothing more than a sit down with the paper, or surfing the web, to find the offenders.

It is very tempting for dealers to promote aspects of, say, a credit deal e.g. low deposits, interest free or to offer it to people with poor credit status but, as they say, there is no such thing as a free lunch.

Credit deals are always a balance of different features and the purpose of the Regulations is to give a balanced picture. If you need any assistance always take advice from Lawgistics on this very complex area.

Published: 16 Mar 2011


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