This is probably one of the most asked questions by our members when they receive correspondence that relates to historical sales of motor vehicles.
These forms of correspondence come from various sources, such as the Financial Ombudsman Service (FOS), motor finance lenders, motor finance brokers, solicitors, and claims management companies.
Due to the ongoing saga with discretionary commission arrangements, we have seen an increase in these types of communications. However, whatever our thoughts are on the matter and the likely outcome of this saga, we still need to treat this correspondence correctly.
An example scenario:
A customer makes a complaint against the lender with regard to a discretionary commission model and they make a complaint to the FOS. The lender writes to our member for assistance with paperwork, but our member decides to ignore it, as the complaint is from a lender they no longer have a business relationship with, and it involved a vehicle sold years ago.
All seems fairly harmless at this point. It is the lender’s complaint, and they need to respond to the FOS so the complaint is investigated fully. However, the lender, in an attempt to mitigate the issue, advises the FOS that they haven’t received a reply from the dealer in this matter.
As the FOS works closely with the Financial Conduct Authority (FCA), the FOS reports that it would appear that credit brokers (motor dealers) are not cooperating fully with these complaints.
You then put yourself in the firing line of an FCA investigation and we advise that is something you would not want to be involved with. The FCA will start by looking at your website which is your “shop window” and will start asking questions about representative APRs, commission disclosure statements, complaints procedures, and the list goes on.
As you are aware, Lawgistics are not an automotive compliance firm. However, we can assist when it comes to responding to these types of correspondence as the answer to the question is always, YES!
If you think you need an overhaul of your automotive compliance, then we suggest you contact a company that specialises in these matters, such as Automotive Compliance or The Compliance Guys. Disclaimer: This is not a paid advertisement; other automotive compliance companies are available.
What most people don’t know is that talent development doesn’t have to be complicated, high risk or expensive. Once they integrate key development stages, the results can be remarkable. Empower your team. Lead your industry. We’re your strategic learning partner, driving performance by moving skills forward.
