More financial support from Rishi Sunak
Further money has been given to local authorities to distribute and there are grants of up to £9000 for businesses which have had to close.
Read more
What car dealers can and can’t do in the new lockdown across the 4 nations
Find out if Click & Collect and Click & Deliver are options for your pitch.
Read more
Car Dealers - what you currently can and can’t do
Firstly, service and repair garages are OK to stay open in all four nations. However, for car dealers, it’s a real mix and match.
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14 days return and the V5/extra owner issue
Whichever model dealers have used, there is no getting away from the fact that any sales completed during lockdown were either ‘distance’ (online) or ‘off premises’.
Read more
Scottish Dealers in Level 4 & signing paperwork indoors
While indoor showrooms had to close, “outdoor car lots” were specifically allowed to stay open.
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Distance selling facts...
Having seen some common questions and incorrect information given out, here is a quick list of distance selling facts.
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Update to Click & Collect and Click & Deliver
Any Click & Collect must be for a “pre-ordered” vehicle with no business taking place at the premises
Read more
Distance Sales – Getting the paperwork right
Failure to give the correct paperwork will mean you give the consumer the right to return a vehicle for a refund (for no particular reason – there doesn’t have to be a fault) anytime in the next year.
Read more
Staying open for business - Who is to say whether a car is essential or not?
In short, our general advice is definitely close your indoor showroom except for access purposes (which can include getting to a service reception or to finalise finance documentation).
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Click & Collect or Click & Deliver – How does it work?
Lots of our dealers were already successfully providing these services through the previous lockdown and this is the updated advice for anyone deciding to offer these options this time around.
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Green light for accompanied test drives
Since lockdown, customers and dealerships have had to get used to unaccompanied test drives.
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Who is not entitled to redundancy pay and how is it worked out for staff who have been on furlough?
For those businesses who find themselves in the unfortunate position of making redundancies, we have produced a redundancy pack.
Read more
Dealers need to be vigilant, act diligently and stay alert
Given the understandable emphasis on all things Covid right now, it could be easy to loosen the grip on all the everyday important issues, especially with staff returning after a break which could mean they need refresher training.
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COVID-19: Click & Collect v Reserve & Collect – how to legitimately avoid the 14 day return policy
Dealers will still need to consider all the retail social distance measures which the Government have set out.
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COVID-19: A further update to the Furlough scheme including clarification on commission and what Directors can do
On 20 May 2020, the treasury updated the Direction which sets out the legal rules of the furlough scheme.
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COVID-19: So can car dealers go back to work on the 1st June?
Assuming infection rates do not go up, dealers need to start preparing to open their doors as there is a lot to consider.
Read more
COVID-19: Managing annual leave during and after furlough
The Government have advised that employees can carry over their statutory annual leave over into the next year.
Read more
COVID-19: Required documentation for test drives
Here at Lawgistics we already deal with the problem of dealers having to pay speeding fines which occurred when a customer was out on a test drive.
Read more
COVID-19: Click & Collect for car sales
Many dealers have taken the opportunity to start or increase their capacity to take orders over the phone/internet, provide a video walk round of a vehicle and deliver said vehicle to the customer.
Read more
COVID-19: Just when you thought furlough & commission was all clarified...
Does discretionary mean that an employer doesn’t have to pay commission?
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COVID-19: Commission & Furlough - where are we now?
Now we have the law, the commission scenario still isn’t awfully clear.
Read more
COVID-19: Good news all round for the sales people in our industry!
Employees can now be paid any regular payments which includes past overtime and compulsory commission payments.
Read more
COVID-19: To Furlough or not to Furlough
Everyone is talking about furlough, but what does it mean, who will benefit, is commission included and how will it be paid?
Read more
COVID-19: MOT Centres and Garages can stay open ...but for how long?
The Government are currently saying that MOT Centres and garages can stay open after 30 March but obviously all the advice re social distancing should continue to be followed.
Read more
Moneybarn fined by the FCA
The fine relates to how Moneybarn treated customers who got into arrears and Moneybarn’s general failure to clearly advise customers of the likely financial consequences of failing to keep up with payments. The FCA found that more than 1400 customers were pressured into agreeing unrealistic repayment plans once they fell into arrears.
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Fines, penalties & cloned vehicles
Cloned vehicles can cause havoc, especially when clients fail to respond to the notices, sometimes in the belief that if it is not their car, no ruling can be made against them. However, once the process is up and running, dealers need to make sure they respond to any notice and quickly. In the case of cloned vehicles, you will need a police reference number and photographs of your vehicle to evidence that the vehicle carrying your plates is not the real vehicle. These cases are a pain and it can be difficult to get the fine discharged on first attempt but if you stick to the deadlines, you will get a chance of an appeal and it is at this appeal stage, that these cases are usually won.
Read more
£820 out of pocket due to a data breach
However, your staff also have a responsibility to not breach data protection rules. A recently reported case from the motor industry involved an employee of car dealership V12 Sports and Classics Ltd being fined £200 plus a £30 victim surcharge and being ordered to pay £590 towards prosecution costs for emailing herself employee and customer data in August 2017, weeks before resigning.
Read more
Beware of customers buying multiple cars on one debit card
Customer purchases a vehicle. They pay with one, maybe two debit cards. They collect the car (but more usually ask to have it delivered) and are very happy. They are so happy in fact that they later look to purchase a second car. The previous sale went without issues, there have been no complaints and so you sell the second car. They may come back for a third or more. All is well. Then, out of the blue 3 months later, your bank take all the money for those cars out of your account and so you have no cars, no cash.
Read more
Senior Managers and Certification Regime (SMCR) from the FCA
By the time you read this, the new Senior Managers and Certification Regime (SMCR) from the FCA will be in place. A few of our dealers will become Core Firms under SMCR but most will be Limited Scope firms.
Read more
Another court win for a Lawgistics client
In a recent case, a customer had asked for his race engine to be
repaired. This is specialised work and our client is highly qualified in
this field. However, the customer was unhappy with the work which was
carried out and entered a court claim against our client.
Read more
The Senior Manager’s Certificate Regime (SMCR)
The FCA bring this latest extension of the Senior Managers and
Certification Regime (SMCR) into play on 9 December 2019 any dealerships
offering finance will need to be ready.
Read more
Beware of rolling contracts
Here at Lawgistics, clients often ask for help when they are being chased for payments which they don’t believe they owe. Sadly,
these cases are not always easy to argue as more often than not, the
client has unknowingly signed up to a long term contract with lengthy
cancellation periods.
Read more
Like Abba in Waterloo, sometimes we feel like we win when we lose
The customer had, quite frankly, been an arrogant character and was
clearly someone who was used to getting their own way. They oscillated
between acting as a ‘know it all’ but when it suited, playing the
innocent poor consumer who didn’t really understand what was going on –
usually when trying to get their own way when a Court Order or expert
report was not to their liking.
Read more
GDPR - Showing potential customers the V5
We are starting to see a few complaints about personal data (in this
case name and address) in regard to V5s being shown to potential
customers. There doesn’t appear to have been a ruling from the
ICO on this but our view is that showing a V5 to a potential buyer is
legitimate.
Read more
3 month engine and gearbox warranty
I like to remind dealers about this issue periodically as we still see cases where the words ‘3 month engine and gearbox warranty’ have been scribbled across a sales invoice.
Firstly, there is no legal requirement to give a warranty to your customers. Consumers will be covered by their statutory rights under the Consumer Rights Act 2015 (CRA).
Read more
Can a customer change their mind about a repair?
We have had a number of cases go to court recently on this point, and the law is clear. Under
the Consumer Rights Act 2015, if a consumer agrees to a repair, they
cannot simply change their mind and ask for a refund. This applies both
within the 30 Day Right To Reject period and beyond.
Read more
Be careful what you sign
As a business you have less protection from unfair terms than you would
when signing a contract as a consumer. This means that you should never
sign anything, without at the very least giving it a good read through.
Read more
Responsible lenders?
In March, the Financial Conduct Authority’s (FCA) report into the motor
finance sector was published. Their review which commenced in July
2017, was set up to ask questions about whether car dealers were lending
in a responsible, fair and transparent manner. The result of the report is that the FCA expects all lenders and brokers to review their processes and amend where necessary.
Read more
GDPR, consent and your ongoing obligations
This time last year, Lawgistics were very busy trying to re-educate
businesses who had been told to rely on consent for marketing. We
warned about bad advice which was being given out by ‘experts’ who were
advising people to get consent from everyone on their marketing lists.
Read more
A faux pas by the Motor Ombudsman?
In a recent decision which found its way to the Daily Mail, the
Motor Ombudsman awarded a consumer £850 because his ‘black leather’
seats were not 100% leather.The consumer
purchased a used Mercedes E Class, presumably after looking around and
test driving the vehicle, but later made a complaint after reading about
another consumer who had his seat leather tested to reveal that it
contained polyurethane.
Read more
VAT exemption when exporting new vehicles to the EU
One of our clients sold a high value vehicle on which the customer
claimed a £40,000 VAT exemption. The customer introduced a financial
intermediary into the equation and they duly set up a deal with a
European Finance House and arranged for the vehicle to be exported. Some months later, our client becomes the subject of HMRC enquiries.
Read more
“I hear you’ve been in an accident”
Just where do those annoying cold callers get details about accidents we have had in our cars? For many, the answer will be from Mustafa Kasim who worked for accident repair firm Nationwide Accident Repair Services (NARS).
Read more
'Secondhand car salesman' used as insult
An interesting decision has come out of the Employment Appeal Tribunal in regard to workplace banter. In
this case Evans, a sales representative, put in a claim against his
employer Xactly Corporation Limited for discrimination on the grounds of
disability, victimisation and harassment after he was dismissed for
poor performance. He had tried to negotiate a £78,000 settlement
Read more
Claim companies target PCP and GAP
As predicted, we are now starting to see claim companies pop
up to deal with ‘mis-selling’ of PCP and Gap Insurance.
Read more
Happy Birthday Consumer Rights Act
The Consumer Rights Act 2015 is 3 years old this week. In our experience, the CRA has worked quite well for car dealers despite
anomalies such as the ‘one repair rule’. This one repair rule is fine
for less complex items but for modern day used cars, it is really not
fit for purpose as sometimes we need to complete repairs by process of
elimination and sometimes, two things will go wrong in relatively quick
succession for no particular reason.
Read more
FCA Regulated firms and the new SMCR
The new rules follow the recommendation by the Parliamentary Commission
on Banking Standards (PCBS) that the FCA develop a new accountability
system to avoid a repeat of the 2007/8 financial crisis. Essentially it
replaces the approved persons regime and is therefore relevant to all
dealers offering finance and puts more accountability on a wider range
of people within organisations.
Read more
30 Day Right To Reject Reminder
We have had a few calls of late from dealers who are of the belief that a
refund has to be given in the first 30 days if there is a fault. This is not necessarily the case.
Read more
GDPR, DPA it's all about the data
As predicted, we are all still alive and kicking despite some of the
horror scaremongering by some quarters in the lead up to GDPR. In
all the GDPR headlines, it may have escaped the notice of some that the
UK got its own updated Data Protection Act 2018 (DPA), also implemented
in May.
Read more
BT falls foul of data protection rules
BT is the latest organisation to fall foul of data protection rules. On 20 June 2018, the ICO fined BT £77,000 under section 55A of the Data Protection Act 1998.
Read more
County Court Judgments (CCJs)
CCJs can cause havoc with your credit record and so your ability to obtain loans. These
can be avoided by winning in court but, if you find yourself on the
losing end of a claim or having a default judgment issued against you as
you failed to respond to a claim, you can still avoid having a CCJ on
your credit record.
Read more
GDPR and service history
Finally the noise around GDPR has quietened down and most of us can get
back to business safe in the knowledge that we are GDPR compliant.
However, we have already seen our first complaint and request for
compensation from a customer who has complained that someone saw their
personal data on a screen in a dealership. No doubt other speculative
letters and claims for compensation will follow.
Read more
GDPR – Legitimate Interest is your friend
We are pleased to note that the ICO have now produced a document which
confirms what we at Lawgistics have been saying for many months and that
is that legitimate interest is a business friendly ground for
processing data.
Read more
GDPR - Confused about consent
People, and indeed other legal advisors, still seem a bit confused about
consent, so here are some bullet points to put right some of the myths
out there:
Read more
GDPR – Privacy Notices for Employers
GDPR arrives with us on 25 May 2018. We have already given lots of
practical advice for dealing with consumer data but businesses must not
forget about employee data.
Read more
GDPR - Do you need to register with the ICO?
These Regulations set out the fee which businesses have to pay to
the Information Commissioners Office (ICO) when registering as a Data
Controller. You are a Data Controller if you have customers and/or staff
as you will be processing personal data. Failure to register and pay
the relevant fee is likely to result in a fine of £4350.
Read more
GDPR and telephone calls
I understand I can’t send an email asking people to consent to further
marketing emails, as that email itself will be considered as marketing,
but can I call these people to get consent?
Read more
I am a sole trader working from home, how do I prepare for GDPR?
As we move closer to the implementation of The General Data Protection Regulations (GDPR) in May this year, we are receiving an avalanche of calls to our legal helpline from anxious members, who have been affected by 'panic stations marketing' campaigns in and around GDPR. We have therefore decided to publish some of the most common questions we receive with our answers.
Read more
Email marketing when your consent is not up to GDPR standards
We are advising our members on the standard they must achieve if they
wish to rely on consent as their lawful basis for utilising personal
data for direct marketing purposes. Direct marketing being defined in
the current Data Protection Act as
“the communication (by whatever means) of any advertising or marketing
material which is directed to particular individuals”.
Read more
GDPR - consent must not be hidden in your terms
If you have collected names and email addresses over the years by
putting a box on your sales invoice which requires a customer to tick if
they do not want to be on your emailing list, you will almost certainly
find this to be a breach of the GDPR. Why? Because the criteria for
consent has changed.
Read more
GDPR - you need to undertake an information audit
In just over 4 months, your business will need to be GDPR compliant. No ifs, no buts, no maybes. We
await the UK’s own new Data Protection Act 2018 which is still being
debated over in the House of Lords. This new Act will consolidate and
add to your responsibilities which are already set out in the European
GDPR and so whatever the UK Act says, you still need to be GDPR
compliant as of 25 May 2018.
Read more
GEM warranties - A cautionary tale
According to Companies House, GEM was set up in February 2015 by Spencer
Allen who described himself as the Managing Director. In August 2015,
Spencer Allen was joined by Spencer Martin. However, Spencer Martin’s
Directorship was relatively short lived and it was terminated in
November 2016.
Read more
Start thinking about how you might breach the GDPR
Breaches by individuals can attract not just fines but criminal
convictions as we saw recently when a recruitment manager who sent out
26 CVs to an external recruitment agency without consent from the data
subjects was prosecuted at Birmingham magistrates court under Section
55 of the Data Protection Act. He pleaded guilty and picked up a £994
fine (including costs and a victim surcharge).
Read more
More fines from the ICO for data breaches
Hot on the heels of the fine for Honda after they emailed customers
asking if they would consent to further marketing messages, the price
comparison site Moneysupermarket is issued an £80,000 fine for beaching
the same Privacy and Electronic Communications Regulations (PECR).
Read more
Chasing a debt
If you are chasing money owed by a customer, including a sole trader but
not a company, you have to follow the new rules before issuing a court
claim for the sums owed.
Read more
Banter, alcohol and a bit of wishful thinking does not a contract make.
In short, the two were drinking in a London pub with 3 others who
were being courted to become Sports Direct’s new Corporate Brokers. In
between the banter re the fortunes of Mr Ashley’s Newcastle United, Mr
Ashley apparently told Mr Blue he would pay him £15 million if he could
get Sports Direct’s share price up from £4 to £8 per share. It seems Mr
Blue went home and told his wife of the deal as around a year later, Mr
Blue’s wife sent him a text saying “bingo is our nameo!!!" in relation
to the shares hitting the magic £8. However, Mr & Mrs Blue’s payday
was not to be and so off to court they went.
Read more
Does the Government owe YOU?
Are you a business waiting for payment of some of the £26.3 billion of
the outstanding debt owed to SMEs (small medium enterprises)? As of December 2016, it was reported that UK small and medium sized businesses were owed £26.3 billion in late payments.
Read more
Can I dismiss an employee with a disability?
We often receive calls from clients who are nervous about dismissing an
underperforming employee who has a disability. This is understandable as
there is substantial legislation which provides specific protection to
employees with disabilities.
Read more
PCP excess mileage complaint to the FOS and the importance of due diligence
In this month’s Ombudsman News, the FOS reported on a case whereby a
customer complained about the excess mileage charge at the end of her
PCP deal.
Read more
GDPR + The Data Protection Bill
The GDPR were put together by the EU. Like all members of the EU,
the UK have to implement the GDPR by May 2018. On 7 August 2017, the UK
Government confirmed they are now working on a UK version of the GDPR
which will have wider powers and will take over from the Data Protection
Act.
Read more
Suddenly everyone is talking about the GDPR but what is it?
The General Data Protection Regulations (GDPR) is an EU piece of Law
(2016/679) with which all UK businesses will need to comply from May
2018. It sets out how businesses need to deal with the processing of
personal data. It’s not totally new as the principles of its predecessor
(EU Directive 95/46/EC) were introduced in the UK back in the 90s in
the form of the Data Protection Act 1998.
Read more
More Employment Tribunal claims coming your way?
Last month the Supreme Court ruled that the fees payable by disgruntled
employees who wanted to make a claim at an Employment Tribunal (ET) were
unlawful. Fees of up to £1200 have been payable since 2013 but in a
judgment following a case brought by UNISON, these fees are no more.
Read more
Does your customer know who they are dealing with?
If you have set your business up as a Limited Company, doubtless you
will know that one of the advantages is not being personally liable for
financial losses if things go horribly wrong (unless there is an element
of fraud).
Read more
Are you ready for the GDPR?
The GDPR is the General Data Protection Regulation which is an EU piece
of law which will essentially enhance your responsibilities in regard to
data protection. Regardless of Brexit, this new law will come into
place in the UK in May 2018 and now is not too soon to start thinking
about how it will affect you and your business.
Read more
Alternative Dispute Resolution (ADR) - yeh or neh?
We regularly receive calls and emails from dealers who have been told
they must participate in ADR. Often the dealers will receive a letter
from one of the many ADR providers offering their services for a fee.
Understandably dealers are miffed at having to pay a fee to negotiate
with a consumer when a) they are car dealers and negotiate for a living
and b) by the time mediation is offered, the dealer has already made
their position clear to the consumer and so they do not want to waste
more time in fruitless discussion.
Read more
Another court win against a consumer with unrealistic expectations of a used car
One of our clients found themselves dealing with a rather persistent
consumer whose list of alleged issues kept on growing. Despite disputing
the issues, the client took a commercial decision to offer a refund
just to draw a line under the matter as it was clear this was a consumer
who was not going to go away. However, the consumer did not want to
return their lovely 10 year old convertible BMW, they wanted money and
so many backs and forths later, they issued a claim against our client
for over £7200 – £700 more than the sale price.
Read more
Is PCP the new PPI
For 10 years now, PCP has been the most utilised form of car finance by
value. This has been good news for new car sales but financial
regulators are now getting jittery about the entire thing as they also
are about the numerous long term 0% credit card deals which just keep on
coming. The fear of course is that people are borrowing beyond their
means as credit seems to be back in the pre 2008 ‘easy to get’
territory, and we all know where that and sub-prime lending landed the
economy.
Read more
Post brexit legislation changes
For many years now, the UK has been subject to EU law about all manner
of things including the notorious bendy bananas. How will 'Brexit'
affect you and your business when it comes consumer issues.
Read more
New rules for those chasing bad debts
For many types of court cases, there are certain actions which have to
take place before a claim can be issued. These actions are set out in
the pre action protocols which can be found in the Civil Procedure Rules
(CPR).
Read more
Part 2 in the case of the dealer who bought a car which was not HPI finance clear
Last year we reported on a case where our client was taken to court by a
finance company. Our client had bought a car from a consumer and then
sold it on without realising there was outstanding HP:
Read more
Section 75 slip up by consumer, his solicitors, Santander and their solicitors
One of our clients found themselves on the end of a claim about a faulty
vehicle. The consumer claimed to have paid on a credit card and so
added Santander, as the card issuer, as well as our client on the claim
form. In turn, Santander put in their own claim against our client under
the provisions of Section 75 (2).
Read more
PPI Complaints - the end is not so near
At long last we have been given a date for the cut-off point of PPI claims. However, the date is August 2019. Yes 2019.
Read more
A New Year, a new court victory for a Lawgistics dealer
This was a case in which the consumer had issues with his vehicle. Our
dealer had helped the consumer out on a goodwill basis earlier in the
ownership but the consumer had returned as the warranty company had
deemed the latest issue as one of wear and tear. As an issue of wear and
tear, our dealer had no obligation either but still made a goodwill
gesture in the name of customer service.
Read more
Speeding fines and test drives
We have had a number of clients who have found themselves on the wrong
side of speeding tickets and the like following a test drive by a
customer and/or a test run by one of their own staff.
Read more
The myth of the 3 month engine and gearbox warranty
We still see and hear evidence from across the industry that some
dealers believe that they have to give a 3 month warranty when they sell
a vehicle. To be clear, they don’t.
Read more
Cookies reminder
For anyone using cookies on their website.
Read more
Update on the new online court
Plans are still progressing for the new online court system which the Ministry of Justice hope to be up and running by 2020. The court will deal with cases up to £25,000 on much the same principles as the small claims court
Read more
Business Rates 'Scams'
A number of our dealers have sent us correspondence from a company offering to get their business rates reduced. While
there are cases whereby valuations are wrong and can be reduced, it is
not unheard of for this to be a scam as previously reported by us and
Trading Standards.
Read more
Online Dispute Resolution - ODR
In short, most traders with a website will need to include a link to
the European Online Dispute Resolution scheme which came into being
along with the ADR rules and Regulations. It is designed for EU cross border consumer complaints but can be used by consumers for internal complaints.
Read more
Correction to previous advice from Trading Standards
Further to our story last week we are pleased to note this week that
Buckinghamshire & Surrey Trading Standards have sent out a letter to
correct the mis-information they sent out to traders last week.
Read more
Website design and copyright
For anyone considering getting a new or revamped website, you must
consider issues of copyright and access to the website’s source code
before signing any contract with a designer. If you fail to do this, the
design will be owned by your chosen designer (unless they are an
employee) in their role as its creator and this could cause all sort of
problems further down the line.
Read more
Incorrect advice on ADR from Trading Standards
We have had calls from a number of our dealers who have received a
letter from Buckinghamshire & Surrey Trading Standards who are
clearly on a car dealer initiative at the moment (letters dated 14
October 2016). The letter appears to be generic and sent to many dealers and so you wont necessarily get a visit.
Read more
Happy 1st Birthday to the Consumer Rights Act Part 1
It is now just over a year since the Consumer Rights Act 2015 (CRA) was introduced. There
was much publicity around its introduction and quite rightly so given
it had been nearly 40 years since it predecessor, the much quoted Sale
of Goods Act 1979, became law.
Read more
Happy 1st Birthday to the Consumer Rights Act Part 2
Whilst we at Lawgistics have been successful in helping dealers fight
off consumers with unreasonable expectations since the introduction of
the Consumer Rights Act 2015, we are still seeing a number of cases
whereby finance companies are rolling over to consumer demands in the
expectation that our dealers will reimburse them.
Read more
Another win for a Lawgistics client (and common sense) in court
The consumer ignored our advice, paid out an extra £355 for the hearing
fee and then promptly lost the case. Needless to say our client was very
happy with the outcome as were we as it is further proof that common
sense and proportionality can and do win over unrealistic consumer
demands and expectations.
Read more
Sometimes, even the Financial Ombudsman rules against the consumer
We had a case a while back whereby a customer complained that our dealer
had put their and their son’s life in danger by selling a BMW with run
flat tyres. They took issue with the fact that the vehicle was not
advertised as having run flats – essentially claiming the vehicle was
not as described.
Read more
What will Brexit mean for me as an employer?
As debates around Brexit continue, a number of our clients are asking if
there will be changes to employment law which could affect their
business. The current answer is probably.
Read more
Court wins sometimes come down to a technicality or two
Our dealer purchased the vehicle from a customer who said the vehicle
was clear of finance. Our dealer did run an HPI check but, in error, not
one which documented outstanding finance. The vehicle was sold on to a
customer but some weeks later our dealer was contacted by a finance
company who advised that the vehicle was still on finance and thus was
still owned by them. This of course means the original seller did not
have the right to sell it to us and so in turn our dealer had no right
to sell it to the new customer.
Read more
Another happy dealer after a court win against a consumer
In this matter, the consumer bought a 10 year old BMW 1 series. It had just over 70,000 miles on the clock and he paid £5.5k. The vehicle was purchased pre October 2015 and so the relevant law was the Sale of Goods Act 1979 and not the Consumer Rights Act 2015.
Read more
Terms and Conditions in a Business to Consumer car sale
We get a lot of requests for us to review terms and conditions from
dealers selling cars to the public. However, unlike business to business
transactions - such as agreements with finance companies, terms and
conditions in consumer transactions are not really something to overly
concern yourselves with.
Read more
More Front than a Pirelli Calendar
Fronting is perhaps more commonly associated in the world of
insurance whereby parents name themselves as the main driver of their
teenager’s car in an effort to bring down the now outrageously high cost of
insurance for young drivers
Read more
Another Lawgistics Car Dealer wins in court
From time to time we get dealers call in to say they have not taken the
right money off a client, quite often due to a typo on the invoice. It
happens. In this case, our client had mistakenly put a 5 on the
invoice instead of a 6 and so when the customer came to collect the car,
only £5400 was taken and not £6400.
Read more
Car Finance & Section 75 of the Consumer Credit Act 1974
Hot on the heels of our discussions about the potential negative
implications of contracts between dealers and finance companies, we have
this week seen a finance company try and make a claim against our
client under Section 75 (2) of the Consumer Credit Act.
Read more
More small prints woes
Following on from our
legal update
regarding finance companies trying to legally force dealers to
effectively pay out for any complaint by a consumer, we have been
inundated with calls from concerned dealers. To be clear, not
all finance companies have taken this route. However, our experience is
that finance companies will sometimes roll over too easily on fear of
the customer escalating any complaint to the Financial Ombudsman Service
(FOS).
Read more
Supreme Court sends yet another reminder that Court Orders must be followed
A recent Supreme Court Case saw seven of the very best judges in the
land consider how to deal with a party not complying with a Court Order. A
court will sometimes issue an ‘unless order’. An unless order is just
as it sounds, i.e. unless you do A by a certain date, you will suffer
the consequences.
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Are you in breach of The Consumer Contracts (Information, Cancellation, and Additional Charges) Regulations 2013?
These not so nifty sounding Regulations came into force in June 2014.
However, they were further embedded into the law by the Consumer Rights
Act 2015. They set out what information you are legally required to give
to customers before the customer is bound to make their purchase.
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Coming soon...on-line court for claims up to £25,000
Currently people can issue a claim through the ‘Money Claim Online’
System. If the value of that claim is £10,000 or less (as almost 70% of
all claims are), it will be allocated to the Small Claims Track. Over
£10,000 it will go into either the
Fast or Multi Track.
All three tracks usually end with a court room hearing if they are not
settled along the way. However, plans are afoot for the introduction of a
new on-line court system.
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Denying the customer their consumer rights
The new Consumer Rights Act 2015 has made it clearer as to who
constitutes a consumer and therefore who attracts the full range of
consumer rights. The definition of consumer is:
“an individual acting for purposes that are wholly or mainly outside that individual's trade, business, craft or profession.”
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One month in – The Consumer Rights Act 2015
Following the introduction of the Consumer Rights Act 2015 last month,
we have seen a surge in sales of our PDI pads as dealers have taken on
board our advice to review their pre delivery procedures.
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Useful new FCA guidance on consumer credit applications
Those of our clients who are FCA registered often complain about navigating their way around the GABRIEL system.
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The Financial Ombudsman (FOS) and complaints
We often get calls from car dealers who feel they are being pushed into a
corner by a finance company following a customer complaint. The usual
scenario is that the customer has complained about a fault which the
dealer has not upheld and so the customer has marched off to the finance
company who worry about the complaint being escalated to the FOS.
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On premises sales, off premises sale and distance contracts
Most sales by our dealers will be subject to the ‘on premises’ sales
rules within the Regulations given that an on ‘on premises’ sale is
defined in the Regulations as a contract between a trader and a consumer which is neither a distance contract nor an off premises contract.
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Are you breaching the new rules for FCA Regulated firms?
January and July this year saw two new rules to which any dealer who has a credit licence will need to adhere.
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Refunds under the Consumer Rights Act 2015 - deductions for use by customer
Under the short term right to reject, even if the customer has had the
vehicle for 29 days of the 30 day period, they appear to be entitled to a
full refund.
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County Court Judgments (CCJs)
Figures released on 6 Augusts 2015 by The Registry Trust show a fall in the number of CCJs recorded against businesses.
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The short-term right to reject under the Consumer Rights Act 2015
Who is responsible for returning or collecting a vehicle that has been rejected within the 30 day short-term right to reject period. You the dealer, or the customer?
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New rules mean a customer can reject a car within the first 30 days after purchase
If a consumer complains of a fault with the vehicle in the first 30
days, they will be entitled to bring it back to you for a refund.
They can ask for a repair but they are not obliged to accept a repair
and can simply insist on a refund which you will be legally obliged to
give
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Revving up for October
October 2015 brings the implementation of the Consumer Rights Act 2015
which will become the main piece of legislation on which consumers will
be relying when buying a car.
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The new Alternative Dispute Resolutions (ADR) Rules – date change
The new rules on ADR were due to come in on 9 July 2015 in accordance
with the Alternative Dispute Resolution for Consumer Disputes
Regulations 2015. However, those Regulations were recently amended and
the implementation of the new Rules, in terms of business information
requirements, has been pushed back to October.
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Court cases and cambelts
It could be tricky if you sell a car which is overdue a cam
belt change, you could arguably be found liable for any damage from it
failing, especially if you have advertised the vehicle as having a full
service history or if you claim to have serviced the vehicle ready for
delivery.
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Good preparation is key to winning in court
As soon as a customer issues a court claim against you, you should seek
legal advice. Cases can be won or lost on how well the case is presented
and it is important to have a plan from the start. We regularly help
our members assess the merits of the case against them and will advise
on best and worst case scenarios.
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Watching the Watchdog
Reviews, scams and the Car Dealer Watchdog. It seems that the review site Car Dealer Watchdog is still causing problems for some dealers.
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Section 75 refunds
If a customer uses their credit card to make a payment towards a vehicle
priced between £100 and £30,000, they have the legal right to approach
their credit card company with a complaint about that vehicle
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Bailiff Fees
List of the fees that High Court Enforcement Officers (HCEOs or bailiffs
in the old terminology) can legitimately charge when collecting a debt.
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Enforcement of a County Court Judgment (CCJ)
Our clients can find themselves on both sides of the County Court
Judgment (CCJ) enforcement rules. They may have been to court as the
Claimant, perhaps taking action against a supplier who sold them faulty
goods, or as the Defendant in a case that a customer has bought
regarding a vehicle.
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Good news from the courts for car dealers
As a car dealer being taken to court, you may well feel that you will be
judged before even stepping inside the courtroom when up against a
consumer.
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Cars sold on HP
Many of our dealers sell cars on HP whether that is through themselves
as an authorised FCA broker or via one of the online brokers which
customers can approach direct.
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New Rights for Consumers
On 26 March 2015, the much talked about Consumer Rights Bill finally
completed its long journey backwards and forwards through the Houses of
Commons and Lords to metamorphose into the all singing and all dancing
Consumer Rights Act 2015.
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Keeping consumer issues out of court
Following the introduction of the small claims free mediation service in
April 2013, more measures are on the way to help parties settle their
dispute without the need to argue it out in front of a judge.
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The DVLA and Car Tax
As reported in a previous
update,
some dealers are experiencing problems emanating from the car tax
changes last October whereby some of their customers have recently been
fined as they were unwittingly driving around untaxed following some
early confusion over the new rules.
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The DVLA & Cherished Plates
Many of the issues with cherished plate transfers are not helped by the slow processing times at the DVLA.
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PPI complaints rumble on
complaints against our dealers for the mis-selling of PPI on car finance deals
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Internet Reviews & Scams
In our experience, some review sites are more clued up than others when it comes to their legal responsibilities.
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Changes to bankruptcy and Debt Relief Order rules
The Government have announced that from October 2015, the bankruptcy creditor petition limit will be raised from £750 to £5000.
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Hangovers from last October’s Vehicle Tax Changes
The effects of the above changes are still impacting on our dealers four months into the new system.
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Mediating in small claims - Say yes!
This week saw another of my clients reach a satisfactory outcome at mediation.
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Residential and Commercial Tenancies
According to the Property Data Report 2014 over one half of the UK's commercial property is rented.
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Sale of Goods Act and the ‘6 month rule’
It is not unusual for customers to rock up and demand that our dealers provide a refund or repair for their used car because xy or z has happened in the first 6 months after purchase.
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Negotiating Court fees
As discussed in our court claims article it is cheaper for a money claim to be issued on line through the Money Claim On Line system .
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Some Section 75 good news
My last update discussed payments by credit cards and the extra protection this gives to the consumer.
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Chasing customers and businesses who owe you money
Many of our clients approach us to help them call in debts owed to them be it by customers or other businesses to whom they have supplied goods and services.
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Accepting credit cards for payment and Section 75 refunds
A recent survey by the consumer organisation Which? shows that a quarter of people are unaware of the protection offered to them by Section 75 of the Consumer Credit Act.
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The UKIP Factor - New rules for West Midlands landlords
As this Government tries to win back voters from the UK Independence Party, new rules are being introduced by the Home Office under the Immigration Act 2014.
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Have you seen my catalytic converter?
We have had a few calls of late regarding catalytic converters, specifically missing ones.
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Unfair on Employees? Latest figures from Employment Tribunals
New figures released by HM Courts and Tribunal Service show that claims to Tribunals are down 71% for the quarter April to June 2014
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Renting out properties as an additional source of income
Many of our clients are also Landlords of residential properties.
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Just what is the Golden Rule?
Potential new rules for debt claims in the County Court
The days of filling out forms and queuing at the counter at your local county court to issue a debt claim are long gone.
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