8:45 am, August 12, 2022
A used car dealership in Lancashire that was the subject of a warning by the Financial Conduct Authority has had its consumer alert removed.
Northern Autos in Accrington had claimed to offer finance via three providers. However, it transpired that it hadn’t received authorisation from the regulatory body to do so.
As a result, the FCA issued a warning online about Northern Autos, telling the public: ‘You will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme, so you are unlikely to get your money back if things go wrong.’
Two of the providers told Car Dealer they had never had dealings with Northern Autos, which began operating in February.
The third said Northern Autos had never introduced any customers to its dealer arm, although its retail side – where customers apply for finance directly on its website – had paid out on two deals with Northern Autos and was happy that all FCA regulations had been met in those instances.
Once it became known that they had been directly linked to Northern Autos, all three providers took action to have their names removed from its website.
Northern Autos owner Nadeem Shah told Car Dealer at the time that he hadn’t had any FCA-related issues and had always been upfront with anyone who asked if the dealership was FCA-registered, telling them that it wasn’t.
He has now sent Car Dealer a copy of a letter sent to him by the FCA dated August 3 in which it tells him the consumer alert has been removed from its warning list as of that date, and that it is closing the case.
Shah was asked for a comment but hasn’t provided one as yet.
The FCA told Car Dealer it couldn’t comment on specific cases.
However, it also told us: ‘The FCA issues alerts in circumstances where it is concerned that a firm may be offering financial services in the UK without FCA authorisation or exemption.
‘Although we cannot comment on specific cases, alerts can be taken down for a variety of reasons, including action taken by the firm itself to stop its unauthorised activity or to remove any illegal financial promotions.’
