Press Release
31/10/2024
For Immediate Release
A pensioner, forced to delay his retirement by three years after being trapped in a motor finance deal with sky-high interest rates, is now hopeful in his fight for justice following a recent High Court ruling in favour of motorists.
Raymond Scothern is one step closer to receiving compensation after the landmark Court of Appeal judgment on October 25th, which declared it unlawful for lenders to pay commissions to car dealers without the borrower’s knowledge.
The 69-year-old’s case is being managed by Manchester-based firm Barings Law, which is at the forefront of securing justice for those affected.
The recent ruling also acknowledged it was insufficient for commission details to be hidden in the terms and conditions.
This landmark case follows Raymond’s ordeal which began in 2019 when he purchased a £6,539.91 Ford Focus from a Leicester garage forecourt, ‘unknowingly’ signing a 60-month contract with £7,000 of interest.
The eye-watering monthly repayments came as a shock to Raymond, who worked in the motor trade at the time, and resulted in him having to delay his retirement by three years.
Raymond explained: “At the time I was working long hours, starting work at around 4.30am, so I needed a car to get me to and from work.
“I saw the Ford Focus, had a chat to the staff about it and explained I wanted to buy the car using finance. They said nothing about the high interest, they just mentioned that there would be interest.”
“I saw the Ford Focus, had a chat to the staff about it and explained I wanted to buy the car using finance. They said nothing about the high interest, they just mentioned that there would be interest.”
About six weeks later Raymond received the first payment and was shocked to see the interest was about 2.5 times the vehicle payment.
Hoping to retire within the next two years and visit family in Australia, Raymond said reality sunk in that neither of these would be possible.
The father-of-seven continued: “I didn’t know until the first payment how high the interest was. My heart sank, knowing we would have to work the next four to five years to pay it off.
“I pushed back retirement to pay for the car. It felt really horrible.”
“I pushed back retirement to pay for the car. It felt really horrible.”
With the increasing cost-of-living and bills continuing to pile high, Raymond said his wife’s mental health began to suffer and as a result had to stop working late in 2023.
Amidst these struggles, Raymond said he contacted vehicle financer, Moneybarn, about the payments, but they would either offer to come and take the car back or offer a month break from the repayments - a band-aid solution to an ongoing problem.
In June this year, five years on from the initial purchase, Raymond and his wife sold their Ford Focus and used the money to finish paying off the car’s finance.
Raymond explained: “I had to get rid of it, because the clutch went, and it was going to cost £800 pounds to get it repaired.
“With that money we paid the rest of the payments off and straighten a lot of bills up. That eased the pressure and was a big weight off our shoulders.”
Since selling the Ford Focus, Raymond has been able to directly purchase an older vehicle through a friend from his previous work in the motor trade.
Since selling the Ford Focus, Raymond has been able to directly purchase an older vehicle through a friend from his previous work in the motor trade.
He added: “I know people in the motor trade, but I just fell in that trap.
“It makes me mad; I should have been on guard. People who are mis-selling motor finance are putting people in further debt, it’s not right.”
Barings Law Managing Director Craig Cooper celebrated the landmark ruling and explained that failing to provide full and accurate information about the terms, conditions, or costs associated with car finance is a clear case of mis-selling.
Barings Law Managing Director Craig Cooper celebrated the landmark ruling and explained that failing to provide full and accurate information about the terms, conditions, or costs associated with car finance is a clear case of mis-selling.
“This latest ruling represents a significant step towards justice for motorists who have been misled in their financing agreements. It sends a clear message that mis-selling will not be tolerated.
“Anyone can be affected and mis-sold finance, through a range of methods, including not disclosing crucial terms regarding the agreement, or using high-pressure sales tactics.
“While legal proceedings may be the last thing victims, including Reymond, want to go through after years of struggling, Barings Law is dedicated to guiding those affected step-by-step.
“By holding the responsible lenders and dealers accountable, we aim to protect consumer rights and ensure that similar misconduct is not repeated. No one should have to push back their retirement because they were mis-sold vehicle finance.”
-ENDS-
About Barings Law
· Established in 2009, Barings Law is based in Cardinal House, Manchester.
· The firm represents victims of consumer and business mis-selling on a no win no fee basis.
· Regulated by the Solicitors Regulation Authority.
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