A Leicester pensioner forced to delay his retirement by three years after being locked into a high-interest car finance deal is now optimistic about receiving compensation. Raymond Scothern, 69, is among the motorists who could benefit from a recent Court of Appeal ruling that found it unlawful for lenders to pay commissions to car dealers without the borrower’s knowledge.
Scothern’s ordeal began in 2019 when he unknowingly signed a five-year finance contract for a £6,539 Ford Focus with an added £7,000 interest rate. The unexpected monthly repayments forced him to extend his working life, impacting his plans to retire and travel to visit family in Australia.
Speaking about the financial strain, Scothern recalled, “I was working long hours and needed a reliable car. The staff mentioned interest would apply, but I wasn’t told about the high rates.” Shocked by his first payment, he realised that interest costs would be about 2.5 times the car’s value.
The experience led to a prolonged financial struggle. He said, “I had to push back retirement to afford the repayments, which felt devastating.” His wife’s mental health also suffered due to mounting costs, forcing her to stop working in 2023.
Despite reaching out to vehicle financer Moneybarn for assistance, Scothern says the only options offered were either to return the car or to take a one-month payment break. In June, after several years of strain, he and his wife sold the Ford Focus to settle the remaining finance and ease their financial pressures.
Scothern, a former motor trade worker, noted, “I know people in the industry, but I still fell into this trap. People shouldn’t be misled into unaffordable debt by hidden finance terms.”
Barings Law, the Manchester-based firm representing Scothern, is now pursuing justice on behalf of other affected motorists. Following the Court of Appeal’s October 25 ruling, lenders can no longer withhold commission details in car finance contracts’ terms and conditions.
Craig Cooper, Managing Director at Barings Law, welcomed the judgment. “This is a major victory for motorists who were misled about their financing agreements,” he stated. “Lenders and dealers must provide accurate information to ensure consumer rights are protected. No one should be forced to delay their retirement because of mis-sold vehicle finance.”
Cooper added that many individuals like Scothern unknowingly face similar financial pitfalls, often due to undisclosed terms or high-pressure sales tactics. Barings Law is supporting affected motorists in seeking compensation, aiming to prevent further mis-selling in the car finance industry.
