Car sales on finance up a third on a year ago
18 May 2012
Thu, 17 Sep 2009
The scandal of the year in the car finance industry could result in legal action. A report into the collapse of MG Rover claims that the involvement of the Phoenix Partnership needs to be closely examined, in court.
At this stage it is unclear whether civil action can be taken against the so-called ‘Phoenix Four’ who purchased MG Rover from BMW for a tenner at the turn of the millennium. Anger exists over the personal benefit of the company .
One expert, car industry expert Nick Matthews, reportedly commented in motor finance news: Company law on fiduciary responsibility is complex and unclear. The inspectors agree that it is uncertain, particularly in respect of the deal to buy MGR Capital. What they have said is that the only way to establish for sure whether laws have been broken is through the courts.
