Like many industries, the automotive industry has an ombudsman. The Motor Ombudsman (TMO) is a dispute resolution service covering a wide range of issues for consumers buying and repairing new and used vehicles. Companies in the industry, which are accredited by the body, agree to conform to four distinct codes of practice. These Codes of Conduct lay the foundation for selling new cars, selling used cars, service and repair of vehicles and selling warranty products.
In a bid to offer consumers greater peace-of-mind when purchasing a new car, these Codes of Conduct enshrine, predominantly common sense, policies to make sure motorists don’t get ripped off.
How does TMO work?
Established in 2015, following the introduction of the alternative dispute resolution (ADR) regulations—as part of the Consumer Rights Act 2015—the Motor Ombudsman has created these four charters. The highlights of each code are below:
New Car Code: covering businesses selling new cars, this code of practice asks vendors to be transparent in their dealings with customers, ensure staff are conscientious and competent, the warranties are sold fairly and that spare parts are made readily available.
Vehicle Sales Code: covering new (via franchised dealerships) and used cars, but focussing more on the latter, the vehicle sales code asks vendors to ensure there are vehicle provenance checks, that test drives are made available, that staff aren’t pushy and that once sold, the car handover includes full documentation.
Service and Repair Code: this covers all servicing by all types of garage, workshop, dealership locations and asks that all work be carried out as agreed, that services are honest, fair and transparently priced (meaning invoicing needs to reflect quote) and that an accessible complaints procedure is made available.
Vehicle Warranty Products Code: covering a wide range of post-purchase financial products, such as insurance and warranty, this code ensure honest advertising, suitable selection of products for the customer, clear information on what the product covers, a cancellation period of 14 days and a simple claims procedure to fairly and promptly process the claim.
With more than 7,500 business, from franchise dealers to vehicle warranty providers, and including 98% of vehicle manufacturers, TMO expects these businesses, as members, to honour the terms of the codes set out. By being an accredited member of the Motor Ombudsman, they have effectively agreed to conform to all of these standards.
How do motorists benefit from TMO?
Many of the terms of the codes are already available to consumers in broader legal statutes, protecting all consumers in all industries. However, by expliciting translating UK law into what it means for the automotive industry, TMO hopes to drive higher standards and be clear about the expectations set for consumers.
The Motor Ombudsman provides a single channel and point-of-contact for consumers to follow up on issues that they have been unable to resolve with the company in question. The hope is by enabling TMO to mediate in the conflict, both parties can avoid expensive legal fees
There are caveats however. Before contacting TMO, motorists need to have exhausted the complaints procedure directly with the brand involved. If the consumer has received a final decision, or waited eight weeks with no response.
There’s also other stipulations. You can’t use TMO, if the issue happened more than six years ago, another resolution service is dealing with the matter, you’ve received a final settlement or you haven’t incurred a ‘demonstrable financial loss’.
Also, if the vehicle is bought for business purposes, you’ll have to explore other avenues. This service is just for domestic consumers. Though it can only deal with issues affecting UK companies, you don’t have to be from the UK to use TMO.
What’s the process for making a complaint?
If you do meet the eligibility criteria for using TMO, you can submit your dispute online. If TMO confirms your complaint is in its remit, The Motor Ombudsman contacts the business in question for its version of events. It’ll also request evidence from you to support your case.
What does The Motor Ombudsman do?
Ultimately, TMO sets out to resolve the dispute swiftly. It’ll first try and get a settlement with or without meditation. If unsuccessful, the case is passed to an impartial adjudicator, who reviews the evidence, in context of the Codes of Practice and makes a decision.
If you disagree with the adjudicator’s decision, however, the top dog Ombudsman, currently Natasha Gasson, will take a look and make a final decision.
If you accept the decision it will be binding on both the consumer and the business. If businesses don’t conform, they’ll no longer be accredited. Accreditation to TMO is in the interests of businesses in the automotive industry as membership is significantly cheaper than the legal costs faced if a dispute cannot be resolved outside of court.
What powers does The Motor Ombudsman have?
The Motor Ombudsman stresses that it is not out to punish a company that is potentially treating a customer unfairly. It simply wishes to put the customer back in the position they would have been in, had the problem not occurred.
That wording is really important. For example, if you buy a car and something goes wrong with it, it doesn’t automatically give you the right to reject the whole car. If the problem is an oil leak and ‘if it were not for that oil leak, I would have the car no problem’ is the conclusion, then the issue is the oil leak and getting the leak fixed is the resolution.
The Motor Ombudsman can, on your behalf, seek an apology, an explanation of what’s happened, a repair or fix that is practical, and/or a financial award to get you to the point you wish to be in, within reason.
It looks to advise the member company on how to avoid similar issues in the future, can issue penalty points to businesses that don’t comply or engage with the process and takes further industry-based steps against a business persistently failing to conform.
However, if you’re not happy with the outcome, you can still pursue legal action against a company if you feel there is a strong enough case.
How long does all this take?
With straightforward negotiation, matters can be resolved in as little as five days. Some that are more involved could take 90 days, but TMO aims to wrap things up in 15.
Is the Motor Ombudsman free?
Yes, the service is free-of-charge for consumers. Businesses pay for membership, which is the revenue stream that funds The Motor Ombudsman. Since the operation is self-regulated, you might argue that it’s not in the best interest of TMO to find fault with the businesses being complained about. After all, who kills the goose that lays the golden egg, right?
TMO is keen to emphasise just how impartial it is. The board of directors is 50% non-executive directors from outside of the motor industry. There’s also an independent compliance assessment panel (ICAP), again made of both automotive and non-automotive representatives. It meets three times a year to scrutinise outcomes and decisions of randomly selected cases. It publishes an annual report.
There’s the Ombudsman Association (OA) keeping all ombudsmen (and women) in line with a best-practice framework and finally, TMO is audited annually by trading standards.
Is The Motor Ombudsman any good?
Like anything, The Motor Ombudsman is limited in what it can do against companies and businesses that aren’t members. Those who sign up for membership know what process they’ll be facing if a dispute is raised. By default then, it’s those businesses, who don’t sign up to such fair Codes of Conduct that are willing to trade less honestly, and with which consumers are going to need the most support.
However, if the company you’ve been dealing with is a member of TMO and you think you have a case, read its step-by-step guide for starting a dispute resolution.
The Motor Ombudsman contact number is 0345 241 3008* (option 1) available Monday-Friday 9am-4.30pm (no bank holidays).
If you wish to write, the postal address is: The Motor Ombudsman, 71 Great Peter Street, London, SW1P 2BN
