7:02 am, December 12, 2021
Car dealers have been facing new legal challenges in 2021 following an FCA report on commission, says Lawgistics MD Joel Combes.
Speaking on this week’s Car Dealer Podcast, he commented on how commissions disclosures have become a bigger problem than the firm originally thought.
Combes said: ‘Commission disclosures have been coming in faster than we thought.
‘I know we talked about this at the beginning of the year and how we thought this would happen but there was a report by the FCA about non-compliance and requirements of a disclosure agreement. That sparked off a few letters coming in and now we’ve actually taken someone on who deals with the financial side for us.
‘We’re batting them off, as it would be. The solicitors have got onto this because it’s like the new PPI.’
He explained that in their terms and conditions, car dealers should have said that if they asked for details of commission they would be given it and in the FCA report it has said this needs to be prominent.
‘Solicitors jumped on that and said dealers have been misleading because they haven’t made it prominent,’ he said. ‘So really there is no news here because they were doing it properly, but they haven’t brought it to the forefront of their terms and conditions.
‘That’s the letters we’re getting in. They’re really chancers.’
Each week on the Car Dealer Podcast an industry guest joins the team to discuss the news stories of the week and decide what was the best.
This week was no different, with Combes helping to judge, and you can find out more about the stories mentioned below.
- Auto Trader donates £55k to Ben as charity gets set to host fundraising Ball tonight
- Used car prices may never return to a pre-pandemic normal, says Cox Automotive
- New Mazda2 Hybrid arrives with Toyota Yaris underpinnings
- Bentley Birmingham raises more than £25,000 for Royal British Legion in one night
- World’s dealers watch as legal battle hots up over Mercedes agency sales model down under
- Used car search website Motors.co.uk is sold following £6.6bn deal to take over eBay Classifieds Group
- Online marketplace Carwow raises £41.5m to accelerate Sell Your Car service
- Used car prices see five years of growth in just six months, according to new report
If you’d like to join a future episode of the Car Dealer Podcast, get in contact with the team.
