The Asset Exchange Ltd underwent a change in management during the final few months of 2016.
Determined to provide industry leading standards of customer care, the new team undertook a review of past business practices under the previous management. The business worked with the Financial Conduct Authority (FCA) and an independent third party to address issues it identified with some of the legacy processes.
Chief Executive Alan Tomlin said: “I sincerely apologise that some of the past behaviours were inconsistent with our core values and how we aim to treat our customers. I am absolutely determined that this does not happen again, and have made significant improvements over the last 18 months. The FCA recognised this when they previously confirmed their full authorisation for our business, without specific conditions.”
Two groups of customers were affected: Logbook Loan customers and customers who took finance under our ‘The Car Loan Centre’ brand.
We considered the following types of behaviour to be inconsistent with our existing values.
These behaviours occurred and were limited to the period between 1st April 2014 to the 30th June 2016.
The FCA agreed our proposals for redress
This means that affected customers in categories (1) to (3) above will receive an ex-gratia payment of £50.00 either as a credit to their account or as a cheque payment of £50.00 sent directly to them.
A very small number of customers were affected by immobilisation (category 4) and we have treated them differently, recognising the period for which they were unable to use their vehicle. Where a customer’s vehicle was immobilised, our payment takes into account how long the vehicle was immobilised for and includes interest at 3.9% per annum based on the July 2016 retail price index. We will consider claims for additional loss on a case by case basis subject to legal rules of causation.
The total costs of redress does not exceed £45,000.
We are taking steps to contact all customers affected by those legacy behaviors.
If you have been affected, we will be contacting you directly within the next few weeks. There is no need for you to contact The Asset Exchange Ltd. You can find more information at www.thecarloancentre.co.uk/redress