If you have a problem with a vehicle bought from a dealer, which has not been resolved to your satisfaction and the vehicle remains faulty and you want to get it repaired or reject it you may be able to submit your dispute to The Motor Ombudsman scheme to resolve it.
The Motor Ombudsman scheme is an alternative dispute resolution provider for consumers and motor trade businesses which are members of its scheme.
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The ADR process
If you or the car dealer or garage disagrees with the TMO preliminary decision, or if the dealership does not engage in the dispute resolution process, you can ask for the complaint to proceed to an ombudsman to make a final decision.
As with alternative dispute resolution in general, if both you and the dealership agree with the ombudsman decision it will become a binding agreement, which is in reality a contract where the dealer agrees to do what’s in the settlement agreement and the consumer agrees to accept it as full and final settlement.
The Problem
If the car dealership or garage resigns its motor ombudsman code of practice membership, the TMO decision no longer is enforceable. Only approximately 40% of motor dealers in the UK are members of the scheme.
Faulty Cars Bought on Car Finance
If you want to reject a faulty car purchased by way of a car finance agreement, HP, PCP or lease and the dealership refuses your rejection, you may be persuaded by the dealer to submit your complaint to the Motor Ombudsman.
It maybe that the Motor Ombudsman may accept your complaint and proceed with its adjudication process and find in your favour, explaining that having applied the consumer rights act that are upholding your complaint and agree that you have the right to reject the vehicle.
However, there are some serious problems with this.
No contract
- The rule is that only the parties to the contract can enforce it. Your contract for the purchase of your vehicle is with the car finance company and not the supplying car dealer.
- The Consumer Rights Act applies to you and the finance company.
- Therefore, it is not possible for the Motor Ombudsman to conclude that the car dealer is liable to accept your rejection and to refund you, because this is exclusively a matter for the finance company.
Preventing dispute resolution
- The appropriate dispute resolution body for complaints about a car bought on finance is the Financial Ombudsman Service, who are appointed by law.
- However, under the FCA handbook, the Financial Ombudsman Service may refuse to deal with a complaint if it is being handled by, or has been handled by a comparable ADR entity.
- Therefore, in mistakenly submitting your complaint to TMO and it accepting you may prevent yourself from having it adjudicated by the Financial Ombudsman Service.
If this has happened to you all may not be lost, and you should contact us for advice on 0333 700 7676 or
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TMO
The dispute resolution service provided by TMO is invaluable in many circumstances but in dealing with cases involving a faulty car bought on finance you may not only find yourself wasting your time but also prejudice your right to have the fos to decide your case.
About Philip Harmer
Philip is a motor vehicle expert, having spent over seventeen years as an independent motor dealer. Through buying, selling, and repairing thousands of vehicles, he developed detailed make- and model-specific knowledge, including the characteristics, known issues, and vulnerabilities that commonly affect vehicles at point of sale. He brings this experience directly to bear when advising clients on car sale disputes, misrepresentation, and rejection claims.
He regularly advises on car sale disputes, vehicle rejection claims, and used car complaints.
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