CAR FINANCE SCANDAL

johnledi62

About the car finance scandal, It's just been released that people who leased there cars can now claim back money from the finance company that financed there purchase or lease, does anybody know whether this includes cars leased on the mobility scheme.

Alderbank

johnledi62 said:

About the car finance scandal, It's just been released that people who leased there cars can now claim back money from the finance company that financed there purchase or lease, does anybody know whether this includes cars leased on the mobility scheme.

Welcome to the forum.

This is about the landmark Court of Appeal ruling in October which possibly opened up eligibility to some people with Personal Contract Hire (otherwise known as 'leasing') contracts?

Martin Lewis says this is a 'possibility' and warns that it may not be worth pursuing. You can read what he thinks here:
https://www.moneysavingexpert.com/reclaim/reclaim-car-finance/

and here: https://www.moneysavingexpert.com/reclaim/car-finance-undeclared-commission/

The site has a checker. Motability finance agreements are provided by Motability Operations Ltd. The checker says that Motability Operations are not involved in the scandal, so if you have a Motability agreement financed by them you have no grounds for claim.

dunstonh

It is also worth noting that it is not exactly a scandal.   No FCA rules were broken and currently it is a court interpretation of the law that is being appealed.   If the lenders fail in their appeal then most getting a payout will be getting lucky through a loophole rather than actually being missold.

DullGreyGuy

dunstonh said:
No FCA rules were broken and currently it is a court interpretation of the law that is being appealed.  

Any most legal commentators are saying its an extraordinary decision by the court. If it's upheld, ultimately by the Supreme Court, it has potentially vast and wide ranging impact well beyond motor finance or even just finance. To heavily paraphrase it, the court effectively said you cannot rely on someone signing to confirm they've read something to actually mean they have read it

RogerPensionGuy

I can see and hear lots of adverts for legal firms getting customers on board this gravey train and looks like it will be bigger than the PPI saga and obviously Joe the consumer will pay all the bills and legal fees in the end, just like PPI or the banking crash of 2007, Joe always ends up paying. 

I do indeed wonder if delaying this gravey train that it will indeed hook on a few more trucks and make poor old Joe get clobbered even more.

Nasqueron

RogerPensionGuy said:

I can see and hear lots of adverts for legal firms getting customers on board this gravey train and looks like it will be bigger than the PPI saga and obviously Joe the consumer will pay all the bills and legal fees in the end, just like PPI or the banking crash of 2007, Joe always ends up paying. 

I do indeed wonder if delaying this gravey train that it will indeed hook on a few more trucks and make poor old Joe get clobbered even more.

CMCs like easy money from the gullible public who believe nonsense like a firm can somehow check a "database" of agreements - even though such a thing doesn't exist - to determine if you have a complaint. They then get a nice 25% cut of any refund for using the same free refund process everyone else uses - hence they are very willing to jump on the gravy (not gravey :P ) train

RogerPensionGuy

Nasqueron said:

RogerPensionGuy said:

I can see and hear lots of adverts for legal firms getting customers on board this gravey train and looks like it will be bigger than the PPI saga and obviously Joe the consumer will pay all the bills and legal fees in the end, just like PPI or the banking crash of 2007, Joe always ends up paying. 

I do indeed wonder if delaying this gravey train that it will indeed hook on a few more trucks and make poor old Joe get clobbered even more.

CMCs like easy money from the gullible public who believe nonsense like a firm can somehow check a "database" of agreements - even though such a thing doesn't exist - to determine if you have a complaint. They then get a nice 25% cut of any refund for using the same free refund process everyone else uses - hence they are very willing to jump on the gravy (not gravey :P ) train

It just looks like these CMCs organisations are spending lots of cash getting people on their books, so they must feel likely they will be getting lots of profit from all them 25% chunks.
 

dunstonh

A lot of them are taking more than 25%.

Hopefully, if the FCA has any sense, they will impose a cap, like they did with PPI, when they finally do their report.  

Or, if the rule is that everyone should be refunded, they should make it lender-proactive without any need to raise a complaint, which would make the claims companies impotent and stop them from leeching from the redress.