A total of 17 car and motorcycle dealers have been struck off by the Financial Conduct Authority (FCA) since dealerships reopened after lockdown on June 1.
On August 4, the FCA announced final notices to the latest four dealerships to have their ability to offer consumer credit removed.
This means they are no longer authorised to sell vehicles on finance, becoming effectively limited to cash-only sales.
They are as follows:
HMC Cars & Vans Limited, of Worcester Road, Wychbold, Droitwich
Summit Vehicle Solutions Ltd, of London Road, Alvaston, Derby
Caerphilly Van Centre Limited, of Mill Road, Mill, Caerphilly
Sean Morrison, trading as GL51 Cars (no address given)
These latest announcements follow those struck off in July:
Easydrive Cars, of Whessoe Road, Darlington, County Durham
Stuart Carnegie, trading as SC Motors and SC Valeting (no address given)
Christopher Edwards, trading as Liberty Motorcycles (no address given)
Waterside Classics, of Alleysbank Road, Rutherglen, Glasgow
In June, a further nine dealerships had their authorisation removed. They are:
Rochdale Automart, of Crawford Street, Rochdale, Lancashire
Advantage Car Centre, of Canterbury Road, Nottingham
Simple Car and Van, of Chester Road, Wrexham
Premier Motor Group, of High Street, Green Street Green, Orpington, Kent
Heston Cars London, of Phoenix Way, Heston, Middlesex
London Executive Cars Limited, of Castle Road, Southall
Motor Hut Ltd, of Fengate, Peterborough, Cambridgeshire
John Joseph Cullen, trading as Bankpark Motors (no address given)
Net Direct Car Sales Limited, of Hamilton Road, Glasgow
The reason given in all cases is a breach of Principle 11, which requires that firms must deal with the regulators in an open and cooperative way and disclose anything to the FCA that it ‘would reasonably expect notice of’.
In the final notices, the FCA comment that these businesses have ‘failed to respond to the Authority’s repeated requests to pay the Overdue Balance, and have thereby failed to comply with Principle 11 of the Principles and to satisfy the Authority’.
The FCA adds that the dealerships are not ‘ready, willing and organised to comply with the requirements and standards of the regulatory system’.
It also stated that they had failed to satisfy the ‘Threshold Condition’ as the business affairs were not ‘conducted in a sound and prudent manner’.