Financial Ombudsman Service - Strange Decision

bulldog333

Hi All, I am new here, so please be gentle.

I bought a car on finance for 90k on a PCP contract that is in my name and my address and regulated by the consumer credit act.

I had a complaint about a serious fault and wanted to reject the car. The finance company did not accept the request and I then referred the matter to the FOS.

The FOS asked me if I used the car for business. I said it was used for more than 50% of the time.

The FOS have told me that my case cannot be handled by them as they do not have the jurisdiction as the contact is for business use and financed over 25k and therefore unregulated.

I signed the agreement as me, a consumer so my question is. What can I do now? 

Keep_pedalling

What is the fault? how long have you had the car?

bulldog333

The car was purchased in May 2024. The fault developed within the first 6 months. I had to wait 4 months for parts and started the rejection process before I got the car back. Its now sat in my driveway doing nothing as I refuse to use it.   

born_again

The limit on CCA 75A is £60,260 (which you case would fall under) As CCA 75 is over £100 up to £30K.

So business or not you are over the limit. 

If the car has been fixed. Then even if it was within limits, FOS would probably say that there is not a case to answer, as you have decided not to use the car

bulldog333

I am not sure I understand you

DullGreyGuy

bulldog333 said:

Hi All, I am new here, so please be gentle.

I bought a car on finance for 90k on a PCP contract that is in my name and my address and regulated by the consumer credit act.

I had a complaint about a serious fault and wanted to reject the car. The finance company did not accept the request and I then referred the matter to the FOS.

The FOS asked me if I used the car for business. I said it was used for more than 50% of the time.

The FOS have told me that my case cannot be handled by them as they do not have the jurisdiction as the contact is for business use and financed over 25k and therefore unregulated.

I signed the agreement as me, a consumer so my question is. What can I do now? 

On what grounds were you dealing with the finance company?

Normally you'd be dealing with them under Section 75 however that is limited to purchases under £30,000 which yours exceeds. Outside of that is Section 75A however that only applies with tied finance and if you have failed to to get a resolution from the merchant but it is also limited to £60,260 

Presumably this is the decision of an Investigator? In which case you can state you disagree with them and request an Ombudsman review the case. 

If it is from an Ombudsman then your next choice is court but at £90,000 you will most likely end up in the Intermediary Track where legal fees are still fixed but can still be substantial if you litigate and lose and have to pay their solicitors fees. 

TheSpectator

bulldog333 said:

I am not sure I understand you

What don't you understand?

Milkbutnosugar

I too have had dealings with the Financial Ombudsman - very slow and disappointing due to the limit of powers over a dodgy company.  I contacted my MP and a case worker in his office got some quick action at the FOS.  It costs nothing to try that.  Just state your postal address to show that you are a constituent of the MP because an MP will only act for his or her constituents/residents.  You can also leave a true but bad review of the company on well-known review sites to warn other people (and enjoy a bit of revenge).

Hoenir

bulldog333 said:

The FOS asked me if I used the car for business. I said it was used for more than 50% of the time.

The FOS have told me that my case cannot be handled by them as they do not have the jurisdiction as the contact is for business use and financed over 25k and therefore unregulated.

They are making reference to

Finance contracts exceeding £25,000 entered into for business purposes, or where the loan is not primarily for personal consumption, are typically unregulated under the Consumer Credit Act 1974. This means they are not subject to the same level of statutory protections and regulations as consumer credit agreements.