In recent years, social media platforms such as Instagram and Twitter have become and increasingly popular way for companies to advertise their products and services. While this has made it easier for businesses to reach potential customers, it has also created opportunities for scammers and fraudulent companies to take advantage of unsuspecting consumers. One area where this has become particularly problematic is in the world of no deposit car subscriptions and no credit check car leases.
Don't get scammed
When you see the headline ‘No Deposit’ or ‘No Credit Check’ it can be extremely tempting for people who need a car but don’t have the financial means or credit score to purchase a car outright or to qualify for traditional car lease or finance.
However, there are several pitfalls that consumers need to be aware of when dealing with companies thay advertise these types of offers on social media.
Do your homework
First and foremost, it is really important to double-check the legitimacy of any company that is advertising no deposit car subscriptions or no credit check car subscriptions on instagram or twitter.
While some of these companies may be legitimate businesses offering genuine services, there are many others that are scams or fraudulent operations
One way of checking the legitimacy of a company is to use resources like the Financial Conduct Authority (FCA) register and Companies House. These databases can help you determine whether a company is registered with the appropriate bodies, has a history of trading and has any outstanding legal or financial issues.
Strange upfront fees or broker services
Some of the companies advertising no deposits or no credit checks may charge you a fee upfront before any work has been carried out, once paid you may find you being contacted by a legitimate company who do offer these services. All you have done is to pay an individual to take your details and effectively sell them on.
Protect yourself
It is really important to be cautious when dealing with your personal financial information to these types of companies. Scammers and fraudulent companies may use your personal information to steal your identity or commit other types of fraud.
To protect yourself, always make sure that you’re dealing with a legitimate company and never provide sensative information like your national insurance number or bank account details, unless you are absolutely certain that the company is trustworthy.
Conclusion
In conclusion, while no deposit car subscriptions and no credit check car leases may seem like a great deal, there are several pitfalls that consumers need to be aware of when dealing with companies that advertise these offers on social media.
Always take time to research the company, double-checking on websites such as companies house, FCA register and the BVRLA.
How we can help?
All of the companies listed on car-subscriptions.co.uk have been vetted by our team, we check the following:
- Companies House
- FCA Register
- Credit Scores
- BVRLA Members Directory
- WHOIS for Domain History
- Customer Reviews on Google and Trustpilot
It can take us 3-4 weeks to carry out all of the checks before we will publish any providers. Here is a bit more detail:
Companies House
We use Companies House to determine the trading history of a company, the longer it has been in business the better chance of being accepted by the team.
We allow new-start car subscription businesses, if they have a good history of connected businesses on companies house or they have major backing behind them such as ONTO.
We also look at the Driectors to make sure that they are allowed to be in the role and to see if they have any failed businesses behind them
We refuse any companies that may have phoenixed to avoid tax, going into administration or anything else.
FCA Register
Whilst not all subscription businesses need to be registered on the FCA register due to contract lengths, the majority of the vehicle subscription providers on our website are actually listed.
They have to provide data to the FCA each year or quarter to ensure that they are complying with the current regulations, this will help give you peace of mind when choosing your next car subscription.
Credit Checks
We carry out credit checks on the companies to ensure that they are trading, keep up with their payments and have no outstanding legal disputes with suppliers or consumers.
It gives us an indication based on their score, on how they will treat customers and not leave them in a lurch if there is a threat of liquidation or administration.
It also allows us to see there liquidity, how much money they have in the bank, their asset value and their financial obligations.
BVRLA Members Directory
Although joining the BVRLA is not compulsory, those that do subscribe to their membership, should give you some piece of mind that they are following a strict code of conduct when dealing with consumers.
This includes fair, wear and tear guides as well as offering a complaints process, if you are not happy with the service you have received from the car subscription provider.
WHOIS Domain History
If a website has only been registered in the last week, then that should be ringing alarm bells. Especially those websites that look like legitimate businesses but the domain looks slightly wrong.
Car Dealer magazine recently reported a lot of bogus websites that scammers have created, so we have included this and checking WayBack Machine into our due dilligence process.
Customer Reviews
We always check customer reviews on Google, Trustpilot and other websites that allows you to provide feedback on the company or service. These are invaluable to help with the process of checking on the service you will receive.
Things to look out for include; car was not delivered, no communication, telephone number dead, extra money taken from my account.
Things to dismiss include; car broke down within the first week, delays on the vehicle and end of contract issues.
Car Subscriptions Made Easy
We hope you have found this article useful and if you have any questions, please do let us know. Our team are on hand to answer anything you might like to ask.
Easily compare car subscriptions using our website, we only advertise legitimate businesses who have been thoroughly checked.
