Complaints about car loans

Money Box

BBC

Business

4.2 • 825 Ratings

🗓️ 22 June 2019

⏱️ 30 minutes

🔗️ Recording | iTunes | RSS

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Summary

Complaints about the loans used to buy cars have trebled in three years - 50% up in the last year alone. A million new cars were sold to individuals in 2018 - more than nine out of ten on finance. We borrowed £45 billion to buy new and used cars last year. The size and growth of this finance has caused the Bank of England to express concerns and in November the Financial Conduct Authority was so worried it published new rules about how that credit was sold. We look at how well our ability to repay is being assessed.

Small businesses and the self-employed who pay VAT will have to make big changes to how the submit their information to HMRC over the next few months. It's all part of Making Tax Digital where quarterly figures must be submitted using approved software rather than just entering them manually on the HMRC website. Some large firms who already make accountancy packages are telling customers they must sign up for new and often expensive upgrades but do they really need to?

Nearly seven in ten people seeking advice were advised to transfer out of their guaranteed final salary pension and invest the money into a riskier pension fund. That's according to data released by the Financial Conduct Authority this week, collected over the last three and a half years. It says for most people that is bad advice - is it time for stricter controls on pensions transfers?

Presenter: Paul Lewis Reporter: Dan Whitworth Producer: Alex Lewis Editor: Emma Rippon

Transcript

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0:00.0	In Northern Ireland, from the late 70s to the early 90s, the IRA killed over 40 alleged informers.
0:08.0	But the man who often found, tortured and sometimes killed these people on behalf of the IRA
0:12.0	was himself an informer, a secret British army agent with the codename Stakeknife.
0:18.0	Who gets to play God? And why me? Why my family?
0:21.3	When lies are still being told to this day, who do you believe?
0:25.1	I wouldn't even know where to start, and I'm with the IRA.
0:28.5	Steakknife.
0:29.7	Listen first on BBC Sounds.
0:33.5	BBC Sounds, music, radio, podcasts.
0:37.2	Hello, in today's program last year, we borrowed 46 billion pounds to buy cars, but how well do car dealers check we'll be able to pay it back?
0:45.6	Financial advisors are telling too many customers to leave safe, guaranteed pension schemes, the regulator warned this week.
0:51.8	And if you're self-employed or run a small business and pay VAT,
0:55.2	making tax digital start soon.
0:58.0	How can you avoid paying lots of money for new software?
1:01.4	But we start with that car finance story.
1:04.6	Complaints about the loans used to buy cars have trebled in three years.
1:08.5	Last year, 90% of the million new cars bought by individuals are on credit.
1:13.3	Nowadays, that's usually with a personal contract purchase or PCP, a form of higher purchase.
1:18.3	Last year, the Financial Conduct Authority published new rules about how that credit was sold.
1:22.8	And recently, it reminded firms that they must make a reasonable assessment of credit worthiness and must not lend
1:29.2	unless they have had proper regard to affordability. I reported to Amwick must have been talking to
1:34.4	one woman who feels that was not done in her daughter's case. Well, Mandy's daughter is about two
	...

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