The UK market for car finance is probably amongst the world's most sophisticated, both in terms of consumer choices and the regulatory landscape that governs same. Consumers are now challenging what they perceive to be unfair charges. The FLA will be scrutinising the approach of their members. Equally both the Financial Ombudsman Service and the FCA will be considering complaints as to the application of FCA principles such as treating customers fairly. The application of the "one half rule" appears to be a hot potato yet again. This is when a car on finance being HP or CSA is handed back. Clarity and fairness is key!
Car finance companies are levying charges that many experts say are unenforceable in law. These charges are applied when borrowers cut short their PCP contracts for things like excess mileage. The finance companies say the potential charges are made clear to borrowers at the outset but consumer experts say the charges flout consumer law. Money Box speaks to one car owner who refused to pay and now has a black mark on his credit rating.