SME’s Have More Power Over Motor Legal Disputes Than Thought
Tuesday, 4. December 2018
As a consumer, you are probably aware that you have a very strong position in law whenever you have disputes with a supplier whether or not finance is involved. When it comes to cars your position is stronger if you have taken out finance because you have even more Acts of Parliament to protect you.
But what if you are a sole trader, partnership or SME without the resources of a large corporate? Certainly not enough money to take on a large dealer group when you believe that the car isn’t fit for purpose or as described and the only course of action is to go to court.
What many small business owners are unaware of is that the Financial Ombudsman Service (FOS) is available not only to consumers but also small business owners. At one stage the facilities were available to sole traders and small partnerships only but this has been extended to limited companies provided they are what is termed in EU law as a Micro-Enterprise.
To qualify as a Micro-Enterprise you must have a turnover of less than 2 million Euros AND employ less than ten members of staff – even if you are a limited company. Now here’s the interesting thing. If you look through consumer credit legislation it pretty much excludes businesses. But the Ombudsman isn’t constrained by the law and will sometimes find in favour of a supplier or customer based simply on his sense of fairness.
The thing is that even if it doesn’t go your way you don’t have to accept the Ombudsman’s decision. You can still go to court if you have the money to do so, whilst on the other hand, if you are successful the other side must accept the decision of the Ombudsman if you choose to accept the ruling.
So in future don’t despair if you aren’t being treated fairly by a dealer or their finance provider. Register a complaint with the FOS. By Graham Hill
