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.
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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.
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By GlobalData“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.
richard.brown@vrlfinancialnews.com
