The Derby-based used car company, Caralot, has recently closed and its three directors, have been ordered by Derby County Court to refrain from misleading consumers about the quality of their cars.
The order was granted following an investigation by the Derby City Council Trading Standards team into complaints from car buyers. Consumers, some as far as 100 miles from Derby, were duped into buying cars that were passed off as quality vehicles.
Trading Standards investigated 77 complaints against the company during the last three years.
The Enforcement Order was achieved following a lengthy period of consultation with the business against a background of increasing complaints. Derby City Council Trading Standards have been investigating the company’s business practices under the Enterprise Act for sometime. The business failed to accept its responsibilities in resolving complaints, publishing misleading statements and omitting vital accurate information about their vehicles.
In addition there was evidence of aggressive sales practices and e-signing finance agreements on behalf of consumers without their knowledge.
Caralot Ltd portrays themselves as a car sales Super Hero’s however the findings by District Judge Douce dispels that claim.
Cllr Baggy Shanker, Cabinet Member for Regulatory Services said:
“Trading Standards will continue to pursue rogue businesses that constantly ignore their responsibilities under Consumer Protection legislation. There will be no hiding place in Derby for them.”
Douglas Walkman, Trading standards team leader added:
“These investigations are both timely and exhaustive. However they tackle the most complained about businesses in the City and therefore are in the interests of the wider community not simply individual complaints.”
If you have been affected by this issue please contact the Citizens Advice Consumer Service Helpline on 03454 040506.