Spineless finance companies continue to cave in to consumers

legal updates

Many finance companies have little awareness that the Consumer Rights Act cannot cover the sale to them from our client.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

An increasing source of annoyance is being derived from those finance providers who almost always crumple at the first sign of a complaining consumer, regardless of merit.

Of course, why shouldn’t they?  After all, they can always come after the poor supplier – whose car has been totally trashed – under the threat to our clients of “pay up or we will withdraw business from you”.  Sadly, the fact is that many of our customers rely on commission from finance companies so much that they lose the ability to dig their heels in. Clients are economically burdened to reverse perfectly good deals only to ensure that future business with the finance suppliers can continue. And the finance companies know it.

What we find is that many finance companies have little awareness that the Consumer Rights Act cannot cover the sale to them from our client.  This is because, as buyers, the finance companies are not “consumers” as defined in the Act.  They have obligations to the consumer under the Act but those obligations cannot be transferred from finance company to car supplier.

So, they seek to rely on a contractual term that says that the supplier will repay any losses incurred by the finance company – even if those loses are self-induced because they have repaid installments made by the customer at a whim.  Alternatively, they will say that if the case is referred to the Financial Ombudsman that the consumer will win.  No doubt because upon making such a submission they are hardly likely to advance to the Ombudsman any robust defence against their customer.

I particularly wish that the main “offenders” would appreciate that it is not the case that when faced with imperfections, the customer is entitled to reject the car automatically.  Headlight washers that don’t retract on a second-hand car does not render the vehicle unfit for purpose nor of satisfactory quality in the eyes of any reasonable person.  And wear and tear is just that. It is not a fault that was “developing at the point of finance inception”.

For those who are prepared to run the risk of termination of business with a finance company because of their behaviour are invited to contact Lawgistics.   Let us see if we can strike back at those finance providers whose support structure for their suppliers is riddled with osteoporosis.

Cable For My CarWe offer free next day delivery* on all EV charging cables when shipped within mainland UK

Stocking only premium EV charging cables, we ensure you experience a stress-free EV charge, over and over, confidently backed by our 2 year warranty. Our premium & reliable charging cables are compliant with EU & UK safety standards. We offer free next day delivery* on all EV charging cables when shipped within mainland UK.

Jason WilliamsLegal AdvisorRead More by this author

Related Legal Updates

AI is the future – but treat it with care!

AI can be a powerful ally—but recent cases show its misuse can lead to serious consequences, even contempt of court.

The devil is in the detail

A solid report can make or break your legal case, but even minor mistakes can be costly. Learn what details to double-check in vehicle reports and how to avoid common pitfalls that could undermine your evidence in court.

Major changes to UK Consumer Law have landed

The Digital Markets, Competition and Consumers Act 2024 has introduced sweeping updates to UK consumer law, including powerful new enforcement tools for the CMA.

The power of expert evidence in vehicle disputes

Our member never claimed the 5-year-old, multi-owner car was perfect.

When principle costs you the case

What started as a bold claim ‘on principle’ quickly unravelled into a costly courtroom lesson in getting your facts, and your legal standing, straight.

Recent Cases, Real Consequences – and What to Learn

From missed emails to misplaced vehicles, here are a few real-world reminders to help you avoid unnecessary headaches.

Section 23 – Consumers Rights Act 2015 (CRA2015)

The judge determined our member was liable for the repair, despite the clear MOT and trouble-free driving over three months.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.