Close Motor Finance and the great VPP fee mystery

Padz_2

alcot33uk wrote: »

Padz... what are you trying to achieve by this? duplicating posts, wasting bandwidth? Or have you had a bad experience and you're not getting the support you want?

Well... I don't really need support. I needed information which thanks to yourself (on the other thread) and others on here I have now got.

if you're interested the issue was that I was recently overcharged for the VPP on my loan. Charged double in fact. Dealer said he didn't know what it was for. Close wouldn't tell me and fobbed me off for a whole week. Then they were very vague about what it was for. Then they claimed the fee was set by the dealer and they had no control over what was charged. Then dealer said he wasn't responsible and the fee was charged by CMF so it went round in circles like that. Very frustrating. I just wanted the overpayment back!

So I started a thread in motoring in case someone could help. Then thought about it a bit and decided that it might get more views here.

One of my issues was that when I searched for 'Close Motor Finance' and 'VPP' nothing at all came up. At least now if someone else searches for VPP because they have a question about it they will find this thread.

Hope that helps.

Padz

Apples2

So do we know what VPP actually is?

I can see a Vehicle Protection Programme

Vehicle Protection Programme treats the exterior of the vehicle with a revolutionary high gloss paint sealant, this sealant will form a tough and durable shell, encasing and protecting your paint against oxidisation and atmospheric pollutants, maintaining a high gloss finish, guaranteed for three years.
The interior of your vehicle would also be professionally treated. This treatment forms an invisible and durable shield around each fibre, resisting oil and water based spills and helping to prevent permanent staining. Stains resulting from a spill are much easier to remove, keeping your upholstery looking newer for longer.

For sure, this would be a dealer rip off something akin to wiping the car with a ragful of Autoglim for the princely sum of about £350.

Have you mentioned how much this VPP actually was that you were hit with?

http://www.r32oc.com/general-chat/7909-vehicle-protection-program.html

Padz_2

Apples2 wrote: »

So do we know what VPP actually is?

I can see a Vehicle Protection Programme

For sure, this would be a dealer rip off something akin to wiping the car with a ragful of Autoglim for the princely sum of about £350.

Have you mentioned how much this VPP actually was that you were hit with?

http://www.r32oc.com/general-chat/7909-vehicle-protection-program.html

No I still don't fully know what the letters stand for. .So far I have only said that I paid double for it. The dealer has promised to sort it out.

standupguy

Padz wrote: »

No I still don't fully know what the letters stand for. .So far I have only said that I paid double for it. The dealer has promised to sort it out.

If, as Close Motor finance are telling you, that the vpp fee is variable and set by the dealer then I suspect they are paying the dealer a percentage of the vpp fee, therefore the more they charge you, the greater the commission is to the dealer.

Alternatively the dealer may be on some sort of incentive scheme which is tied to the amount they charge for the vvp fee.

You could ask both the dealer and Close Motor Finance to tell you what was the amount of commission involved? You could also argue a case that as it is a variable amount set by the motor dealer then you are being treated unfairly compared with other customers who could be charged less for the same vpp fee.

You should make a formal complaint to Close Motor Finance and say that you have been unfairly treated and to resolve your complaint you require a full refund of the VPP fee.
Say that you intend to take the matter to the Financial Ombudsman service if your complaint is not resolved satisfactorily within the timeframe allowed under the FSA guidelines.

I would think you will get a full refund of the fee or your agreement will be adjusted.

Your complaint can be phoned in if you do not want to go into writing - phone their head office in Doncaster and ask to speak to the Legal and Compliance manager and give the details of your complaint.

Padz_2

standupguy wrote: »

If, as Close Motor finance are telling you, that the vpp fee is variable and set by the dealer then I suspect they are paying the dealer a percentage of the vpp fee, therefore the more they charge you, the greater the commission is to the dealer.

Alternatively the dealer may be on some sort of incentive scheme which is tied to the amount they charge for the vvp fee.

You could ask both the dealer and Close Motor Finance to tell you what was the amount of commission involved? You could also argue a case that as it is a variable amount set by the motor dealer then you are being treated unfairly compared with other customers who could be charged less for the same vpp fee.

You should make a formal complaint to Close Motor Finance and say that you have been unfairly treated and to resolve your complaint you require a full refund of the VPP fee.
Say that you intend to take the matter to the Financial Ombudsman service if your complaint is not resolved satisfactorily within the timeframe allowed under the FSA guidelines.

I would think you will get a full refund of the fee or your agreement will be adjusted.

Your complaint can be phoned in if you do not want to go into writing - phone their head office in Doncaster and ask to speak to the Legal and Compliance manager and give the details of your complaint.

Thanks for taking the time to post that standupguy. I will give it some serious thought.

After a long telephone conversation the dealer has promised to make it right so out of fairness I am going to give him that opportunity first.

AzzieB

VPP is not just provided by Close, I have seen it on many other purchases. I believe it to stand for Vehicle Protection Programme. Some questions that were on a dealer purchase were;

Is the condition and resale value of your car an important factor for you?

Would you consider that the value of your car is likely to be reduced if the paintwork or interior were to be damaged or accidentally stained?

If you answered yes to these questions then we recommend V.P.P. at a given price

It goes on to say that;

I understand that I can take advantage of this unique three year guarantee of the showroom appearance of my new car both internally and externally.

Then the option to purchase or not.

So is it an insurance or a guarantee? By the wording it states a guarantee to I assume this is not a claimable insurance, but at least it might explain what it is.

SeanG79

The interesting point is that you'd imagine the VPP in tht case to be a fixed fee especially in such a case where the vehicle is new and so does not need any HPI check!

A new vehicle still needs an HPI check as it can have security attached to the chassis number and be on the dealers stocking facility. Not sure if the VPP payment is for that purpose though

Globaltraveler

NeverEnough wrote: »

I have used Close Motor Finance for four car purchases over the years and there were absolutely no problems whatsoever with any of the loan agreements - but then, I paid every instalment in full and on time, and know what I had signed up to as I signed the agreement at the dealers on each occasion and had time to read through it there...........

this was really infromative ..thanks