Monday, November 28, 2011
OFT and HPI warning on used cars
The Office of Fair Trading (OFT) has stated that 13% of the 56,000 people who complained to OFT-managed Consumer Direct this year, reported misleading claims or omissions made by used car sellers.
Used car history checker HPI has warned that deliberate omissions on car finance agreements can have serious ramifications, highlighting the fact that a quarter of vehicles checked were still subject to outstanding finance and liable to be claimed back by the finance company.
Seventy percent of complaints received by Consumer Direct were related to faults with cars and 7% reported substandard service from sellers. One-in-three of the used cars checked turned out to have a fault with their history, and an average of 19 cars registered every day turned out to be stolen. Six percent had a mileage discrepancy.
As the OFT points out, £85m is spent each year in the UK, at an average of £425 per customer, to fix faults that dealers are obliged to correct.
“Many consumers are still experiencing problems when buying a used car,” said HPI consumer services manager Nicola Johnson. “The harsh reality is, as the OFT’s figures confirm, many people come a cropper after they have parted with their money.”
Michele Shambrook, operational delivery manager at the OFT said: “We continue to receive a high number of complaints, which are often due to some traders refusing to deal with legitimate complaints or provide appropriate compensation.
“Dealers who fail to treat customers fairly or sell cars that are defective could face enforcement action.”
Last week the OFT took ‘enforcement action’ against used car supermarket group Carcraft for not clearly explaining terms and conditions on financial products, carrying out comprehensive vehicle checks as advertised, or meeting legal obligations to repair or replace vehicles.
The move coincided with the launch of the OFT’s ‘Know Your Consumer Rights’ campaign with an online video to make buyers aware of problems and solutions when purchasing a used car.
The campaign reminds car buyers that any contract with a seller includes consumer rights under the 1979 Sale of Goods Act, and encourages consumers to insist on written agreements and to contact traders as soon as possible if a used car is not as promised.
DATED: 28.11.11
FEED: MF
