While Guernsey does not have a consumer council, Carl Walker, chairman of the Jersey group, has written to more than a dozen finance firms who offer car loans. Among his questions is one asking if the company has offices in Guernsey too.
A review carried out by the UK’s Financial Conduct Authority found that many motorists in the UK may have been mis-sold car finance and so may be eligible for compensation. It emerged that in some cases there were particularly large lender-to-dealer commissions.
‘We needed to get the ball rolling to see how big an impact this has in the Channel Islands,’ said Mr Walker. His letter to local finance companies asks if they are part of a wider group based in the UK and, if so, whether their company falls within the scope of the UK’s Financial Conduct Authority’s redress scheme.
‘The Jersey Consumer Council has received early indications of public concern on this matter and we are seeking to assess the level of potential exposure for consumers in our jurisdiction,’ he wrote.
‘Transparency around these practices is essential to restoring public trust in motor finance and ensuring that Jersey consumers are treated equitably.’
The council has given companies until 14 November to respond.
The JCC is working closely with the Channel Islands Financial Ombudsman, whose chief executive Douglas Melville said that customers should initially make a complaint to their car provider if they believe they were affected, and contact Cifo once the provider’s decision had been made.
At the time the UK story emerged he said Cifo had already received some cases from in the islands but since then there had been no new ones. ‘We had a few we were already looking at and that is a very small number across both islands,’ he said.
However, working with the JCC would be likely to raise consumers’ awareness of the issue and that might lead to more contact from islanders, he added.
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