MSE News: Car finance redress scheme likely delayed until at least 2027

MSE_Helen_K

The financial regulator's major car finance mis-selling redress scheme, originally planned to start in July this year, is facing yet another delay. But in the meantime, it's still best to get your complaint in now, which you can do for FREE using our DIY car finance reclaim tool…

Read more: Car finance redress scheme likely delayed until at least 2027 – but you should still complain in the meantime

MAD_JACK

We used the MSE DIY tool, putting in that my husband purchased the car in 2002, which was before legislation came out in 2007, although I understood that some cases which were before 2007 might also be eligible for compensation. VWFS confirmed that we had indeed been the subject of a DCA. However, we've just been notified by VWFS that because we purchased in 2002, we are out of date for a claim.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82074334#Comment_82074334

The whole thing relies on changes in the consumer credit act 2006, effective from 2007. So, a 2002 sale would not be subject to legislation that became effective in 2007.

gazza3004

Hello,

The finance company that i have put a complaint against (Blue Motor Finance) has just gone into administration, how will affect me going forward?

Regards

Gary

neilied

https://forums.moneysavingexpert.com/discussion/comment/82087162#Comment_82087162

have just had the same. They sent me an email with a link to information. A mention that the business is transferring to Hodge and everything including redress will remain. So hopefully it doesn’t affect, only thing that I was unsure of was that the letter mentioned that I have been identified as a customer who may be eligible to redress, but no mention of me having raised the case and received confirmation of eligibility.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82087162#Comment_82087162

It means that should you have a valid claim, then you will become a creditor. Depending on what's left after the HMRC, the administrators and payroll has been paid, you will likely be looking at zero to pennies in the pound. That bit is unknown at this time.

A mention that the business is transferring to Hodge and everything including redress will remain. 

That isn't what it says on the website. Whilst Hodge have taken on the assets of the business and the staff, it has not taken on liabilities. The business will continue to trade, with Hodge as the owners. However, Hodge are not responsible for creditors and potential redress creditors of the old business.

neilied

this quote on the website is not very promising at all. Is there a financial liability of FSA to support?

“The joint administrators will decide and provide more information on how many customers are owed and will receive compensation. It is, however, very unlikely that customers owed compensation will receive the full amount they are owed.  

We will continue to work with the joint administrators to make sure that BMFL’s redress obligations are progressed as quickly and efficiently as possible, recognising that the scheme is currently partially suspended. “

Doesn’t it seem unfair that Hodge can purchase the prepack deal and now own all of the debit accounts taking the reward of customer payments but then have no responsibility for the finance going in the other direction.

dunstonh

Is there a financial liability of FSA to support?

It has nothing to do with the Food Standards Agency.

If you meant the FCA, then no, they don't get involved either.

Doesn’t it seem unfair that Hodge can purchase the prepack deal and now own all of the debit accounts taking the reward of customer payments but then have no responsibility for the finance going in the other direction.

That is how liquidations work. The administrators have to look to get maximum value for the creditors. If the buyer had to take on the liabilities, then the creditors would likely be worse off

neilied

https://forums.moneysavingexpert.com/discussion/comment/82088463#Comment_82088463

😂🤣 yes I did mean FCA and there is an insight to my work sector that my predictive text changes it. A shame. Am aware that certain industries such as legal, have that back up. Family member screwed by a fraudulent solicitor on housing purchase who is now in prison. Were able to claim losses from a fund. Ah well. If the expected was around £750, I’ll make it back in other ways off the Gov. Have 1 year left on my current lease deal but with the upcoming pence per mile scheme I am considering purchasing a second hand EV next year and popping a mileage blocker on it for part of the year. Keep the costs down 🤣

dunstonh

Am aware that certain industries such as legal, have that back up. Family member screwed by a fraudulent solicitor on housing purchase who is now in prison. Were able to claim losses from a fund. 

Financial Services has such a scheme known as the FSCS.

However, in the case of motor finance, it doesn't fall within the remit of the FSCS. The FSCS is for when a bank fails and your deposits are protected. Or if you receive bad advice and the advice firm is no longer trading.

Motor Finance is a bit of a weird one because it's not really a mis-sale. It's an unintended interpretation of the law, and consumers are largely getting lucky as a result.

Nasqueron

https://forums.moneysavingexpert.com/discussion/comment/82088989#Comment_82088989

Solicitors/law firms etc have to pay in fees which covers the SRA compensation fund. There is no such fund for car finance