Car finance redress plan ‘impractical’, says trade body
Proposed by the financial regulator correction scheme He said it was “completely practical” to sell wrong for automobile financing.
Finance and Rental Association (FLA) Stephen Hadrill, BBC, companies and customers may no longer have documents for that time, the correction plan will cover the loans until 2007, he said.
On Friday, the Supreme Court ruled that the secret commissions on car loans were not illegal, that is, millions of drivers will not claim to sell wrong.
However, the decision has left the possibility of compensation demands, especially for large commissions.
On Sunday, the United Kingdom’s Financial Revelation Authority (FCA), a financial observer, said that it would start a consultation on who should be suitable for compensation and how much they should take in October.
He estimates that the correction plan will cost between £ 9 billion to £ 18 billion to the sector, but it is likely that the individual victims of wrong selling will be less than £ 950 per agreement.
FCA “to wait[s] To ensure that their customers can be appropriate and to know what they can do, they should include “and” agreements based on 2007 “.
However, Mr. Hadrill, who spoke to BBC’s Today’s Program: “[There is] Indeed, a great concern about the correction plan up to 2007. I think it’s not completely practical.
“At that time, there are no customers who had no details about contracts, but also customers.
“And if we’ll have to make careful decisions about who gets compensation, who gets compensation and who needs this information.
He also said that the cost of a correction plan may mean that lenders offer less vehicle financing plan to customers in the near future.
“This cost will have to be absorbed somewhere.”
“Ultimately, the more expensive the lending is, the more expensive borrowing will be for the consumer.”
FCA, “new and used cars despite any correction plan to continue to continue a healthy financial market,” he said.
FridayThe Supreme Court with financial companies in two of the three important test cases focusing on commission payments made by banks and other lenders to automobile vendors.
However, he has left the possibility of compensation requests for the major commissions the court deemed unfair.
The industry is expected to cover the full cost of any potential compensation plan, including any administrative cost.
FCA said that those who have already complained did not have to do anything and advised those who did not complain to communicate with a vehicle loan provider instead of using a request management company.
