If you’ve entered into a car finance agreement and you weren’t fully told about certain details of the contract or the appropriate affordability checks weren’t completed, you might be able to complain to the finance company.
A finance company has a duty to make all the terms and conditions clear so that you know what you’re agreeing to. If hidden extras aren’t brought to your attention, you may end up signing a contract that you wouldn’t have signed if you had known about these extras.
For instance, disproportionate charges for vehicle damages or unknown costs for going over the mileage limit or realising at the end of the term that you don’t even own the car when you thought you would. The FCA found that in 2019, car finance customers were paying around £1,100 more for every £10,000 borrowed as a result of secret commissions and high-interest rates.
Equally, if the finance company didn’t fully check your ability to pay the monthly repayments or the final payment, and you struggle to do so because of your circumstances, you may be able to make a claim. There are many other circumstances when you may be eligible to make a claim for mis-sold car finance, so it is a good idea to speak to an expert to see if you are eligible.
Where to Start With a Mis-Sold Car Finance Claim
Before doing anything else, you should first speak to the finance provider who sold you the car finance. It may be that they hear your concerns and they are able to put it right without you having to take matters any further. If you do not find a resolution by speaking with the company informally, the next step would be to go through the company’s internal complaints procedure.
This will involve writing a complaint letter and sending it to the appropriate complaints email or address. As part of your complaint, you can attach the car finance agreement and any suitable evidence to support your complaint. Usually, complaints should be dealt with within 8 weeks.
If you don’t receive a response or you’re not happy with the outcome of your complaint, you can contact the Financial Ombudsman Service. Your case will then be allocated to a case handler who will contact the finance company and find out their side of the story.
The case handler will then consider all the information and any supporting evidence and come to a decision on whether you have been treated unfairly and what the possible solutions could be. Most complaints can be settled this way, but if either party is not satisfied, the case can be passed to an ombudsman for a final decision. The company may be asked to reimburse you, apologise or pledge to change their ways so that future complaints are not made.
If you are unsure about the process or would like further advice from a mis-sold car finance expert, you may find it beneficial to speak to a professional such as Johnson Law Group.