Although a finance company may think it has limited the agency relationship between it and the supplier in a trading contract, ostensible authority may still arise to make the supplier the agent of the finance company for certain matters, says Greg Standing
Many motor finance companies are often faced with the question of whether to engage in mediation to try to settle disputes with customers. Parties to litigation cannot be forced to engage in alternative dispute resolution (ADR), but serious cost consequences may flow from an unreasonable refusal to do so – as is clear from the High Court decision in Phillip Garritt-Critchley & Others v Andrew Ronnan & Solarpower PV Limited.
The FCA’s final Consumer Credit Sourcebook (CONC) was published on 28 February, a matter of weeks before it will apply to the consumer credit industry. Firms will be allowed a six-month grace period during which they can continue to comply with the pre-FCA regime while they make the changes necessary to comply with CONC.