Which bit, the way that they're advertised so that monthly costs are more representative of the headline price or charges at the end of the deal?
Got a link for that one as I'm struggling to see how miss selling of insurance products due to term issues crosses over to dealer/manufacturer linked asset value risk?!? Or is it the extra charges that force onto the public that cannot look after or repair damage they have incurred?
Spin-bowlers right, the costs are not in need of tighter regulation, it common sense that if you don't stick to the terms and hand back a damaged car you will need to pay extra. However some of these costs I bake in by taking s full maintenance package.
The only time you may get away with it is dealer direct leasing, then they often sting you early into a new car and ignore light damage and mileage issues. But the deals are rarely as good as some internet brokers.
Car finance used to sit under the Consumer Credit Act but is now under the FCA, however, the regulatory regime is not robust and, in practice, the regulation is largely unenforced.
My concern is that leasing in all of it's guises is overly complicated and is being actively sold to unwary punters. Just try buying a car from a main dealer and avoid seeing the F&I man, it's nearly impossible.
I'm completely unsurprised that the more proactive legal firms are looking at this industry for the next round of compensation claims, think about it.
There is a regulatory body, good because there must be guidelines that they can argue were not followed.
There has been a massive uplift in sales of these products, good because there will be enough disgruntled consumers to provide a regular footfall for them.
It's a complicated product, good because it will have been poorly explained in many instances with little evidence of compliant practices.
Consumers will
feel out of pocket and there will be paperwork to show extra charges or interest charged on the full transaction not just the purchase price less the 'balloon'. This paperwork can be called evidence, compensation lawyers love 'evidence'.
It's a misunderstood product and, under the current regime, there is little governance in place to ensure that the consumer really understands what they are getting into.
