PPI sold by Car Dealership? Welcome finance? who is liable!

loadedlady

I bought a car in 2004 and the finance was brokered through the dealership. the car loan came from Welcome finance and it was heavily loaded with PPI. I was missold on a couple of different counts and have a very good case for a refund... so I wrote to Welcome, paid their charges for paperwork etc, had my complaint considered and their final response is "Evans Halshaw sold you the product so we have forwarded your complaint to them". the actual PPI was a welcome product and they are the ones I repaid it to. surely since they are the ones that benefited they are the ones who should repay?? how does it work when PPI was sold by a 3rd party like this?:mad:

[Deleted User]

You can only complain to the seller about mis-selling.
Sounds as if this will be pre-regulation though.

dunstonh

The seller is responsible as the complaint is not about the product but the sale of the product. So, the car dealer carries the liability.

However, as mentioned above, it was pre-regulation. So, the likely outcome is a rejection due to them not being regulated at point of sale.

surely since they are the ones that benefited they are the ones who should repay??

No logic in that. How exactly have Welcome done anything wrong? Your allegations of wrong doing are against the car dealer. So, why should Welcome be liable in your opinion?

loadedlady

No logic in that. How exactly have Welcome done anything wrong? Your allegations of wrong doing are against the car dealer. So, why should Welcome be liable in your opinion?[/QUOTE]

I paid Welcome Finance £3000.... they are the ones that benefited! If the dealership hold up my complaint and refund me then they are out of pocket and welcome still have the £3000 PPI cash.

dunstonh

I paid Welcome Finance £3000.... they are the ones that benefited!

Irrelevant. The price of their product has nothing to do with it.

Why should they refund when they have done nothing wrong?

If the dealership hold up my complaint and refund me then they are out of pocket and welcome still have the £3000 PPI cash.

Which is exactly how it should be. The one in the wrong is the one that pays out.

loadedlady

thanks... I never thought about it like that! The only concern now is the pre legulation issue... so in 2004 where car sales men just allowed to rip people off?

dunstonh

so in 2004 where car sales men just allowed to rip people off?

Yes and no.

The PPI issue is largely one of FSA regulation. Not breach of law. So, legally, they would have done nothing wrong (or at least nothing you can prove). It is a breach of FSA requirements. However, before January 2005, they would not have been regulated by the FSA. So, they cannot break rules that did not apply to them.

It would be like trying to prosecute a smoker who smoked in a pub before the smoking ban existed. Or a driver that went 40mph in a 40 zone two years ago which has since moved to 30mph.

I'm an IFA. I have been an adviser for 20 years. Yet I too only become regulated for insurance in January 2005. Investments etc were regulated in 1988. So, its not uncommon. The reasons the banks have to consider earlier complaints is that they were signed up to a previous body which saw a continuation of regulation under the FSA allowing the FSA to effectively back date it for the whole period. Not just post January 2005.

[Deleted User]

loadedlady wrote: »

so in 2004 where car sales men just allowed to rip people off?

Not "rip people off", but certainly sell PPI with impunity. If you complain to them about a sale prior to January 2005 they won't have to consider your complaint.


Your PPI claim ends here, I'm afraid.