A data services company could be the saviour of tens of thousands of motorists unable to track down mis-sold finance agreements.
The Supreme Court is set to rule within weeks on whether customers can claim compensation for car finance packages where the full details were not disclosed.
The mis-selling scandal affected those who bought a vehicle under a finance scheme before January 28, 2021, where there was a discretionary commission arrangement (DCA) between lender and broker.
Last year a Court of Appeal ruling sided with consumers, stating that dealers who get any commission from lenders must ensure customers are informed.
But there is concern that many motorists will be denied pay-outs because their data has been wiped.
Most banks purge their systems after six years, which means anyone with a finance agreement pre-2018 could be at risk of disappointment.
But help is at hand from Valid8 IP, a client ID and data services firm which is owned by Altrincham-based The Genius Group (TGG).
Co-founder Chris Niebel (pictured left with business partner Mark Shephard) said: “Most people can only often only track down the documents for their last one or two motor finance agreements.
“They may not even remember key vehicle information such as year of registration or licence plate. Added to this, lenders are unlikely to be bending over backwards to help.
“One of the main strengths of Valid8 IP is that you can enter your personal details and the software will check for everything going back to 2000.
“If, for instance, we can find the VIN (Vehicle Identification Number) then they will accept it as a claim.”
The Valid8 IP system is able to retrieve a client’s VIN linked to their PCP agreement through verified industry data.
This ensures precise claim validation by connecting vehicle finance details – even if the lender records have been purged.
Valid8 IP has partnerships with three major credit reference agencies – Experian, Equifax and TransUnion.
Mr Niebel said: “Valid8 IP is helping customers to find 33 per cent more agreements going back to 2007 using the three credit bureaus and car registrations (VRN) going back to the start of the millennium.
“It increases verified claims by around 15 per cent, which enables more successful case submissions.
“This also reduces wasted resources by filtering out unverifiable claims, improving efficiency for both clients and lenders.”
Valid8 works with multiple UK law firms on car finance claims and has authenticated and validated over 3.5 million potential claims for one of its partners, Courmacs Legal a Blackburn, Lancs based firm with an estimated redress value of £4.5 billion.
Mr Niebel added: “This is tech that helps customers and businesses find agreements they didn’t know about, and helps lenders find information they have purged.
“It also stops spurious claims, highlights duplication and increases anti-fraud measures. We’re making their job easier.”
