Second Hand Car Dealer Disqualified For Not Protecting Customers

Thursday, 19 May 2016 07:00

Imran Khadam, Director of Revolution Motors Limited in Oldham, has been disqualified for seven years for breaches of consumer protection laws.

The investigation by the Insolvency Service, which led to Mr Khadam’s disqualification, found that the company was conducting its business in a manner that was to the detriment of, or not in the best interests of, its customers. It also discovered that he persistently breached consumer protection legislation, despite receiving advice from Trading Standards.

The investigation found that between August 2010 and July 2013, Revolution Motors misled customers by providing incorrect and insufficient information about vehicles prior to purchase. The company also omitted information and provided important information in an unclear, unintelligible or ambiguous manner, in breach of the consumer protection from Unfair Trading Regulations 2008. Additionally the company breached the Sale of Goods Act 1979 (as amended) by selling vehicles that were not as described, of satisfactory quality or fit for purpose and employed terms and conditions that breached the Unfair Terms in Consumer Contracts Regulations 1999 by attempting to exclude liability and restrict consumer’s legal rights.

Revolution Motors Limited failed to deal with complaints received from customers in accordance with the law and of the company’s liabilities of £198,780 at liquidation, £81,485 related to losses incurred by customers as a result of the company’s breaches of consumer protection legislation.

The disqualification, which commences onfrom 06 May 2016, prevents Mr Khadam from directly or indirectly becoming involved in the promotion, formation or management of a company for 7 years.

Commenting on the disqualification, Robert Clarke, Group Leader Insolvent Investigations North, said:

The Insolvency Service will not hesitate to take action against directors who fail to adhere to the standards required of them and to remove irresponsible and culpable directors from operating with the benefit of limited liability in the business environment.

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