Raedex is part of an investment scheme where consumers can invest in car leases through Buy 2 Let Cars Ltd. and Rent 2 Own Cars Ltd. This investment scheme is conducted through Buy 2 Let Cars Ltd. which is not FCA authorised.
The requirements will stop Raedex from entering into any new car leases, however all existing leases will remain in place and any customers of Raedex who have leased a car, need to continue to make payments under their leases.
If any consumers who have invested in Buy 2 Let Cars Ltd. or customers of Raedex have queries they should contact the Buy 2 Let Cars Ltd. on 020 8289 6667 or Raedex directly on 020 3823 1010.
Q: What restrictions has the FCA placed on Raedex?
A: The restrictions on the firm can be found in full on the FCA Register.
Q: Why were restrictions placed on the firm?
A: On 19 February 2021, the FCA imposed a number of restrictions on motor finance provider Raedex Consortium Limited (Raedex) requiring the firm to cease conducting regulated activities because of concerns about its finances.
Q: How long will the restrictions remain in place?
A: Firms which are FCA authorised need to meet threshold conditions. If the firm can demonstrate to the FCA that it is meeting threshold conditions, then the restrictions can be removed and the firm can continue to trade.
Q: What do I do if I have leased a car from Raedex?
A: All existing leases will remain in place and any customers of Raedex who have leased a car need to continue to make payments under their leases. For further details please contact Raedex directly on 020 3823 1010.
Q: I have a lease agreement pending with Raedex, what should I do?
A: Raedex is not permitted to enter into any new lease agreements at this time.
Q: What should I do if I have invested in a car through Buy 2 Let Cars Ltd?
A: Buy 2 Let Cars Ltd. is not regulated by the FCA. Investors should be aware that Raedex is not permitted to arrange new leases with customers. Therefore investors looking to invest in hire cars should not make investments through Buy 2 Let Cars Ltd. as the monies cannot be invested in cars which are then leased out.
A: Existing investors should talk to Buy 2 Let Cars Ltd. should they have questions. Please contact Buy 2 Let Cars Ltd. directly on 020 8289 6667.
Q: Is my investment through Buy 2 Let Cars Ltd. covered by the Financial Services Compensation Scheme (FSCS)? Can I make complaints to the Financial Obudsman Service (FOS)?
A: The FSCS provides compensation for certain types of claims when FCA authorised firms fail and are declared in default. Buy 2 Let Cars Ltd. is not FCA authorised. Similarly, the FOS will not consider complaints. Should you wish to complain please raise this with Buy 2 Let Cars Ltd.
Q: Should I try and get my investment out now and is this possible?
A: As these investments are loan agreements (as opposed to a liquid investment in marketable securities, for example) it is unlikely that investors will be able to exit. However, as investors have entered into unregulated fixed term loan agreements with differing terms, they should speak to Buy 2 Let Cars Ltd. for further information.