Car rental contracts, especially for foreign rents, can be complex. Make sure you are properly insured and seek advice from a motorists` organization if you are part of it. Get all the chords in writing. Members of the British Vehicle Rental and Leasing Association adhere to a code of conduct and have an appeal procedure. In December last year, the FCA asked leasing companies to comply with the regulator. Under the current rule, FCA fees for regulated credit contracts, such as rent purchases, were based on interest collected, but fees for regulated leases were based on all rents. An order can be made by the court even if it imposes a burden on the lessor (or associated company) with respect to a benefit enjoyed by another person (such as the revenue provider or broker). Following a response to its consultation, the Financial Conduct Authority (FCA) announced changes to the definition of revenues between consumer leases and consumer credit. While there are no specific safety rules for certain leased products, the general product safety rules apply in 2005. These regulations require manufacturers and retailers to provide only new and used products that are safe for you if used in a normal or reasonable manner.
To decide if a product is safe, all factors are important: if you feel that the leased products are unsafe, report it to the consumer service Citizens Advice to direct them to the commercial standards. If you have been injured by unsafe and rented goods, you should contact a lawyer. For more information in England and Wales, please contact Citizens Advice On 0808 2231133. In Scotland, contact Advice Direct Scotland on 0808 164 6000. Both offer free, confidential and impartial advice on consumer issues. The CFA said: “We have invited a discussion on the impact that our definition of income could have on reported income for consumer leases and whether we should discuss a review. A number of companies have argued that fees for consumer leases may be higher than for comparable unsecured loans. Our definition requires companies to report total revenues from consumer leases as income, while consumer lenders are able to deduct principal repayments, with only interest and other financial expenses reported. The consultation examined the differences between unsecured loans, housing leases (HP) and consumer leases, and examined the impact these could have on reported income and costs. There are certain terms “greylisted” that are not automatically unfair, but can be considered unfair depending on how they are used – for example, a term that allows a trader to get out of the rental contact at his own discretion, but that does not allow you to do the same. The complexity of the paperwork and the relatively small monthly payment mean that some companies could not bother to insist that the two payments should balance each other, so that if the income stops, so the rents also rents.
This article explains the potential regulatory support for this argument.