Just what is the Golden Rule?

legal updates

Even if you think your customer has no chance, he or she actually has every chance if you do nothing.

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Following our update on potential new rules for debt claims and Neil ‘Razor’ Ruddock’s “do you know who I am?” moment when he was tackled by the High Court Enforcement Officers in ‘Can’t Pay? We’ll Take it away’,  we have taken a lot of calls from clients who have received court papers and want to avoid a similar fate.

The Golden Rule is always – do not ignore.  

Even if you think your customer has no chance, he or she actually has every chance if you do nothing.

We have seen a few cases recently whereby a customer has made a claim (www.moneyclaim.gov.uk), the dealer has not responded within 14 days and so the court has made a judgment for the entire amount claimed (often for the total sale price) and not only that, there has been no mention that the customer has to give back the car and so the dealer potentially loses the case, a lot of money and the car!

Now the County Courts are not supposed to penalise, that’s the job of the criminal courts, but such scenarios do happen and whilst we will always try and help our clients dispute such a decision, we are legal advisers and not magicians and so please act early and help us to help you if you find yourself on the wrong end of a claim.

In addition, if you are the Defendant in a Court case and it is decided you need to refund all or part of the price of the car, make sure the Judge includes in the Judgment that you should have the car returned to you.

Connected Car FinanceReady to take the connected approach?

We’re here to ensure all used car dealerships deliver a better car finance experience for their customers. With over 4,000 approved dealer partners we ensure you are properly supported and connected with a range of flexible finance options, allowing you to lend and your customers to buy in complete confidence.

Nona BowkisHead of Legal Services / SolicitorRead More by this author

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

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

Court management service raises money for charity

Members can leave the legal worries to us and can focus on their core business of selling vehicles, running their service and repair garages, and/or MOT testing centres.

Double or nothing – Consumer’s claim dismissed!

The Claimant countered with a request for more than double the amount that our member had offered.

Non-refundable deposits – Where do you stand?

Relevant paperwork should be provided before payment is taken.

Used car warranties – What are you liable for?

If a fault is found to have been developing at the time of sale, this could become the trader’s responsibility to provide a remedy.

Distance Selling Regulations – A thing of the past?

The regulations only apply to consumer contracts, not business-to-business sales, and only apply to sales conducted at a distance.

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