Will the new Consumer Credit legislation be the next rich pickings for claims management companies?

legal updates

Consider PC products to help you provide the audit trail should a complaint be made of finance misselling.

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.

When there is a rigid legal framework to be followed then it is relatively straightforward to make a claim against motor retailers and finance companies for failing to adhere to the letter of the law. 

Many clients will have been put to considerable effort in defending themselves against PPI claims and whilst we do not endorse them you might wish to check PC products developed by companies such as ITC Compliance to help you at low or zero cost to provide the audit trail should a complaint be made of finance misselling. 

You may, of course, already be receiving such packages from your finance providers.

Perhaps two classic examples of potential claims among a number on the ITC website are:-

a)    How can you offer finance to a customer who is declined by one company for financial status and then is passed by a second company, perhaps with less information being declared?

b)   A customer regularly changes their vehicle every three years and you shoe horn the customer into a five-year finance deal. There are many more scenarios and the underlying philosophy in the future of credit lending is to make the lender and brokers more responsible in not over stretching the customer.

HowdenCompetitive, comprehensive, quick

One of the largest independent specialist motor trade brokers in the UK. Our extensive history of supplying insurance to the motor trade means we understand your business needs. By partnering with a specialist insurance broker like us, you get exactly what you need to protect your business.

Dennis ChapmanIn remembrance of Dennis Chapman 1951 -2015Read More by this author

Related Legal Updates

While We Wait: Preparing for the FCA’s Review on Motor Finance Commissions

As anticipated, the FCA was not particularly helpful when questioned about the various issues of investigating complaints that were outside of the standard retention periods for documentation.

FCA Commission Review: Separating fact from fiction in the wake of scaremongering

Attend a complimentary seminar hosted by the FCA for first-hand information – Scheduled for Wednesday, 24 January 2024.

The FOS reports over 10,000 motor finance complaints: Are we really surprised?

The good news currently is the FCA is focussing its attention on the lender and not our members.

The FCA means business

The FCA are closely monitoring how firms are putting their new rules in place and will take action against those that aren’t following them.

Financial promotion on social media

The FCA’s supervisory approach to financial promotions in social media was issued in 2015.

Customer reneges on agreed not distance sale

Our member explained they do not offer a delivery service and do not engage in distance selling.

Consumer “Handcuffed” by Deduction for Use Settlement

Don’t sign any contract unless you are fully aware of its terms!

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.