Lease financing

Fitness10

Not quite to do with the cars and apologies but I couldn’t find a category to define this post however it’s similar to that of the PCP discussions. I own a franchised gym and we were encouraged to take out lease financing with a particular broker who then split our landing across a number of lenders at what was perceived to be very high rates. We always suspected that there were kickbacks or commissions involved and believe this to be the case. Is this something that should be raised with the FCA direct? Apologies that this post refers to a family business but it seems to have strong similarities with the car PCP cases. 

dunstonh

We always suspected that there were kickbacks or commissions involved and believe this to be the case. Is this something that should be raised with the FCA direct? 

FCA does not consider consumer complaints.

The issue with vehicle finance doesn't apply to leases (car or otherwise). Only PCP.   

Apologies that this post refers to a family business but it seems to have strong similarities with the car PCP cases. 

PCP is different from leasing. Also, consumer finance is covered under the Consumer Credit Act, while business finance isn't.

No need to apologise for posting here.  Your query doesn't really fall under any of the other sections.  

[Deleted User]

It depends if you want to complain or sue. It also depends if you are going after the broker for the advice / service given or the lender for paying an undisclosed commission. Finally it depends if you are a sole trader or a limited business for CCA protection, though this doesn't affect the advice given by the broker or if they broke another law such as taking a ‘bribe’ in the form of a large undisclosed commission. If you are serious about looking into it, especially if the sums and rates paid were significant, then you will want to get some professional advice as to the right course of action. The complaints procedure and specifically being able to go to the FOS after it will depend on the size and turnover of your business now and in the last two years. Contacting the FOS will help you to determine if you are covered. If you are, you can use the standard complaints procedure, complain directly to the broker about the advice / service given and the high rates you paid and ask that they provide evidence of any commission arrangements and payments and justify why the rates they secured were so high. They may not give you this willingly. If you are unhappy with the outcome you can take this to the FOS for free to adjudicate. If the broker has not disclosed the commission or arrangements by then the FOS should be able to get it from them. If you aren’t covered by the FOS due to high turnover / business size then you’re recourse if they give you a poor response (if any at all) could be litigation. This comes with some significant risks and costs depending on the size of your claim and how far you take it. You can request disclosure in a well worded letter before action without much risk and this in itself may reveal the information you need to know if you have a strong claim. Again professional advice is probably needed, not saying you need representation necessarily but certainly the opinion of a solicitor with experience in these case types as to the probability of success. Bear in mind time limits may apply but this can be a grey area with undisclosed commission (which this reads like) as it has been successfully argued before that the usual 6 year / 3 year knowledge timer doesn’t start until the type and value are disclosed. Best of luck.