ISLANDERS who may think they may have been mis-sold car finance are being encouraged to come forward – after millions of UK motorists were thought to be affected.
The Jersey Consumer Council has revealed it is investigating “the level of potential exposure for consumers in our jurisdiction” after the UK Financial Conduct Authority announced an industry-wide compensation scheme for eligible motor finance customers.
The scheme follows a UK scandal over the use of discretionary commission arrangements, where the broker – often a car dealer – could adjust the interest rate being offered to obtain a higher commission.
The scandal, which has seen legal battles take place between consumers and lenders in the UK, has come to the fore in the wake of an FCA investigation.
JCC chair Carl Walker has written to more than a dozen finance firms that offer car loans with offices in Jersey to help determine how local customers might have been affected and the potential compensation routes that could be available [see full story on pages 12 and 13].
He said: “We know this is going to be a long and complicated process, but it felt like the time was right to get the ball rolling in Jersey and to see to what extent these commission practices have been used locally.”
The chief executive of the Channel Islands Financial Ombudsman, Douglas Melville, has said that his office was aware of “a few cases here”.
“If the local residents bought a car on financing in the UK, then the developments in the UK are highly relevant to them.
“If they have bought a car on financing in Jersey or Guernsey, it falls into our remit to provide compensation if we think it’s warranted, and we would encourage any consumers that have those issues to contact our office.”
