More help over credit disputes

Buyers are to get more rights to complain about finance arranged in car showrooms – but will have to wait more than 18 months for the measures to be introduced.

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Buyers are to get more rights to complain about finance arranged in car showrooms – but will have to wait more than 18 months for the measures to be introduced.

Consumers who are unhappy with credit arranged through a bank or building society can already complain to the Financial Ombudsman Service, in a bid to resolve disputes without having to go to court.

This Alternative Dispute Resolution (ADR) service provided by the Ombudsman will be extended to cover all other credit agreements such as those arranged by car dealers.

However, the Department for Trade and Industry said the expanded complaints procedure would not be up and running until April 2006.

What Car?’s editor, David Motton, said: ‘Currently, if you’re unhappy with finance arranged at a car showroom, you may have to go to court.

‘These new measures are very welcome, but it’s a shame that buyers will have to wait so long for a quicker, simpler and cheaper way of resolving disputes.’

Although the ADR will cover agreements arranged before April 2006, it will only do so if disputes arose after that date.

To find out how to use the Ombudsman’s ADR service for credit arranged through a bank or building society log on to www.financial-ombudsman.org.uk.

For help with a dispute about finance arranged through a car dealer, contact your local Citizens Advice Bureau or Trading Standards Office. Visit www.citizensadvice.org.uk or www.tradingstandards.gov.uk for more information.