Motor Ombudsman sees finance cases double since January

The Motor Ombudsman has seen the numb of cases it receives on motor finance double since the Financial Conduct Authority announced it was to investigate historical cases of motor finance commission arrangements.

But such cases it said represented a “very small” number of the 25,000 cases it processes each year.

Bill Fennell (pictured), Chief Ombudsman and managing director of The Motor Ombudsman, said: “The Motor Ombudsman (TMO) accepted circa 25,000 cases into its service last year, including a small proportion of cases that related to motor finance in general or allegations of mis-selling of financial products.

“Whilst cases that relate purely to the selling of regulated financial products do not fall within TMO’s remit to provide Alternative Dispute Resolution (ADR), we do signpost these cases to the Financial Ombudsman Service (FOS) who provide ADR to the financial services sector to ensure consumers receive tailored information to help them understand any potential next steps and to have their cases reviewed and resolved.

“Whilst we have seen the volume of such cases being submitted to TMO double since the January 2024 announcement of the FCA’s investigation, this still represents a very small volume of complaints, as many consumers will have gone directly to the Financial Ombudsman Service.”

TMO said it welcomed any investigation which seeks to redress any potential detriment to consumers, with a measured approach to complaints, as opposed to using claims management companies “which can take large cuts of any remedy.”

“TMO’s Chartered Trading Standards Institute (CTSI)-approved Codes of Practice promote best practice in the automotive sector, including the selling of regulated products in accordance with FCA regulations in force at that time.”