Motor vehicle finance mis-selling:redress: The position of the Official Receiver

Motor vehicle finance redress: Update

This is an update following recent media coverage and the Supreme Court judgment on the motor vehicle finance redress.  

Before issuingproviding comprehensivefull guidance, we mustneed carefullyto consider the judgment and FCAFinancial response. 

InConduct theAuthority meantime,(FCA) response including the followingoutcome representsof their public consultation.

This is our interimcurrent position, which may be subject to changechange. 

Below asare furtherdetails legalof reviewthe ispilot conducted.  

the Official Receiver positionis onrunning for motor vehicle finance mis-sellingredress claims 

Ifclaims. aRedress financerefers agreementto forputting something right when a motorcustomer vehiclehas wasbeen takentreated outunfairly before: or suffered a loss.

• Creditors

  theIf dateyou ofare thea bankruptcy,creditor or  

• in a bankrupt’s estate, the dateOfficial ofReceiver dischargewill contact you if you are due any money from bankruptcy  successful motor vehicle finance redress claims.

Contact the rightOfficial ofReceiver actionhandling relatingyour tocase if you have any formquestions.

The offollowing mis-sellinglink may formalso partbe ofuseful: bankruptcyregister proceedings. as a creditor in personal insolvency.

Bankrupts and former bankrupts

If you are: took out a motor vehicle finance agreement before your bankruptcy or discharge, any claim for redress will belong to the Official Receiver. 

• aThe formerOfficial bankruptReceiver will submit a claim and thinkany monies received in redress will go to your creditors. You should not make a claim yourself as you couldare not entitled to do so. If you have already made a claim, or you must tell your lender about your bankruptcy. 

• aIf financialyou providertook whoout dealsthe finance agreement after your bankruptcy ended or if the courts annulled your bankruptcy, you have the right to make the claim and keep the compensation awarded.

  Individuals with claimsother forinsolvency proceedings

  If you are in an individualIndividual Voluntary Arrangement (IVA), you will need to contact the insolvency practitioner who hasdealt beenwith subjectyour case to bankruptcyfind orout debtwhat reliefwill orderhappen (DRO)  to your claim for compensation.

If you are under a Debt Relief Order (DRO) and receiving redress from a motor finance agreement would take your total assets over £2,000 during the moratorium period, you should contact the Official ReceiverReceiver.

The moratorium period (also referred to provideas morethe informationDRO andperiod) agreeusually yourlasts nextfor steps. 12 months but can be shorter or longer.

IndividualsThis matters because getting a lump sum or asset during the moratorium period could affect your DRO.

Claims Management Companies

You should not make claimsa claim or instruct a Claims Management Company (CMC) without speaking to makethe aOfficial claimReceiver onhandling theiryour behalfbankruptcy withoutor firstthe speakingInsolvency withPractitioner themanaging Officialyour Receiver.  IVA.

IfWhat someonehappens when you go bankrupt.

Financial lenders - The Official Receiver’s Pilot

Managed Finance Solutions Ltd (MFS) is duehelping redressthe orOfficial compensation,Receiver itrun shoulda bepilot heldto check with lenders if any redress is owed to thecreditors orderin ofbankruptcy estates.

MFS is authorised by the Official Receiver,Receiver pendingto thecontact outcomefinancial oflenders theseand enquiries. manage responses for individuals with insolvency court orders dated between 6 April 2007 and 28 January 2021.

SendIf youryou queryare a financial lender and MFS contacts you, respond directly to motorfinanceclaims@insolvency.gov.uk. Youthem.

Before shouldsettling provideany theclaims fullfor namecustomers ofnot in the individualpilot, check your own records and thedo bankruptcy/DROan caseinsolvency reference,search whereon known,The Gazette. Any money due in allredress correspondence.  should be held for the Official Receiver.

QueriesFor relatingclaims toinvolving individuals subjectin toan Individual Voluntary ArrangementsArrangement (IVAs)(IVA), shouldplease besend directedqueries to thetheir relevant IVA supervisor.

Contact us

You can send questions about motor vehicle finance claims to motorfinanceclaims@insolvency.gov.uk giving the individuals full name and the bankruptcy or DRO case reference, if known, in your email.