Hi
Has anyone looked into the potential for claims if the FCA go ahead with agreeing mis-selling took place- and could it affect car dealers such as Vertu Motors (LON:VTU) ?https://www.theguardian.com/mo...
Close Brothers (LON:CBG) saw share price fall sharply yesterday.
Worked in the City of London 1976-1988- blue button on the floor, Fund manager assistant at a large Investment Firm, then moved into Investment Trust sales and spent a Year in New York for a UK stockbroker. Left and worked in various businesses before setting up an online B2B business in 2012. more »
There were a few posts on this at the end of the day in Fridays (12th Jan) SCVR which highlighted the risk of a few other banks as well. Worth looking at the last few posts of the day there.
I’d suggest there’s a risk that it hits all market participants where rates were underwritten at one APR & then sold upwards to generate incremental commission income. Typically the funding provider will have a charge back mechanism to the introducer if the lending book fails to perform to agreed parameters…typically this will encompass default & early termination %’s ….without seeing the individual documentation it’s impossible to judge from outside where the liability for misselling will end up.
if I held shares in a car dealer I’d ask that question v specifically as the potential amounts involved are highly material ..albeit likely to be confined purely to non franchised used vehicle sales as new/approved used vehicles typically have manufacturer subvented finance schemes with fixed advertised APR’s ..only those customers turned down by manufacturers finance arms will potentially fall into the ‘at risk’ category from FCA involvement imho.
This issue was raised by Topvest on Friday. My query was whether this will impact motor retailers. I have emailed Vertu Motors (LON:VTU) which I hold. I await a reply.
RE: Vertu
I had a small long standing holding in Vertu which I sold yesterday. It was one of very few AIM shares I had some faith in. Unfortunately recent events have skewed the risk/reward here away from holding.
It is a couple of days since SC120 emailed the company and it would seem that there has been no response? If so - not very promising as it seems that Vertu are at the very least not sure of their position how to respond. At worst, its potentially quite bad news.
There were other concerns - it would seem that the second car market is under a lot of pressure and I am not clear how long and to what degree it will affect Vertu.
A final point was that I am not clear how the Electric Vehicle market will work out for the likes of Vertu. It would be very useful if more informed contributors could comment here. Is it an opportunity or a threat?
Obviously the share price is becoming more depressed - which might attract a bid. I will however watch from the sidelines for now.
