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New guides to legislation on payment plans

Dealers could face prosecution if they are unaware of legislation changes which affect the way in which they may promote vehicle payment plans from October.

Alterations being introduced by the Department of Trade and Industry are designed to guarantee the accuracy of credit agreements on offer and make them easier to understand.

However, the RMI believes many dealers may be unaware of the changes. Its franchised dealer director, Alan Pulham, says it will begin a campaign in the next few weeks to keep its members informed.

Under the new rules, advertisers will not be permitted to state a weekly equivalent price unless the offer of weekly payments is actually being made.

Advertisements must use plain language and must state the name of the dealership or finance company that is providing the offer.

Black Horse Finance is to distribute a guide to the changes from next week.

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