As we are finding to be increasingly frequent, finance companies are taking court action against our members for allegedly not supplying cars that meet their own – often skewed – interpretation of the law.
In one such example, our member did not accept liability but offered (via their former legal advisors) to settle a dispute with a finance company, and to repurchase the vehicle for £7399.
The finance company refused and issued court proceedings adding little more than, “The car was not in a good, safe, satisfactory condition or fit for their purpose under the Consumer Rights Act.” There was no mention as to how or why those criteria were not supposedly met.
Upon reading our member’s defence (drafted by Lawgistics Litigation for the Motor Trade CIC), the judge summoned the parties to court to see whether the claim and particulars of claim met the requirements of the Civil Procedure Rules – that is to provide sufficient detail to allow the case to be determined.
The court found that the claim and particulars were inadequate and the finance company was told they had to submit a compliant claim/particulars. The finance company was also ordered to pay our member’s legal representation costs of £450.
Following receipt of the revised claim and particulars, the finance company went on to accept a full and final settlement offer of £6,672.63 which was £700 less than what they had declined before litigation!
Upon settlement, our member asked if they could now resume dealings with said finance company. The finance company declined stating, “Your client’s poor conduct has marred this process. Even these negotiations, in which we have shown nothing but goodwill, have been hampered by your client’s unreasonable behaviour.”
Go figure that one!
But this shows that no matter how meritorious, if a car dealer challenges a finance company in court it will most likely be the end of their business relationship.
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