Recommendation - 6 June 2016
Key issues: Consumer leases | car lease provider | misleading and deceptive conduct | breach of responsible lending obligations | unfair fees
We found that the FSP:
- misled the consumers to believe they could buy the vehicles for a nominal amount at the end of the Leases 1 and 2. In fact, no right existed, and
- was not entitled to charge the Early Termination Fee under Lease 1, as it was unable to justify the amount charged.
We recommended that the FSP:
- transfer ownership of the vehicle to the consumers at the end of Lease 2’s term, after the consumers had paid the arrears owing under the lease, and
- should refund to the consumers the Early Termination Fee charged under Lease 1.
The FSP accepted our Recommendation.
Follow this link for a full copy in PDF >> Recommendation | 6 June 2016