Taking Back Control: Your Guide to Claiming for Car Finance Mis-Selling.

Introduction

Car finance mis-selling can lead to excessive payments and unfair financial strain. Many consumers find themselves trapped in agreements that are not in their best interests. The good news is that you have the right to take back control and claim compensation for any mis-sold car finance deals.

The Financial Conduct Authority (FCA) stresses that:

“Consumers should be aware of the total cost of car finance and understand any additional charges involved. Mis-sold deals can leave individuals with debts they cannot afford to repay.”

A survey conducted by the Consumer Financial Protection Agency revealed:

“One in four car buyers unknowingly enter into car finance deals that are far more expensive than they were led to believe.”

• Unexplained fees and inflated interest rates.
• Hidden penalties for early settlement or returning the vehicle.
• Lack of transparency regarding the total repayment amount.

Do I Have a Claim?

If you were misled or misinformed when signing your car finance agreement, you might be eligible for compensation. Lenders must clearly explain all terms, including fees, interest rates, and repayment periods.

If any of the following apply to your car finance deal, you may have a claim:

Unclear explanation of total finance costs, including hidden fees. Pressure to sign quickly without time to review the terms. Unrealistic monthly repayments compared to your income. Inflated APR or interest rates that were not disclosed upfront. Charges for early settlement or returning the car that were not made clear. Inaccurate or misleading information about the car’s value. Lack of transparency regarding the loan-to-value ratio.

How Do I Claim?

If you believe you’ve been mis-sold a car finance agreement, follow these steps to claim compensation:

Finding the Lender’s Complaint Information

Visit your car finance provider’s website and look for the “Complaints” section. There, you will find instructions on how to file your complaint, including the relevant contact details.

Writing Your Complaint

In your complaint, clearly outline how you were misled or not fully informed about the car finance agreement. Include supporting evidence such as emails, statements, and any correspondence from the lender.

The lender is required to respond within 8 weeks. If you are dissatisfied with their response or if they fail to respond, you can escalate the matter to the Financial Ombudsman Service. For more information, visit:

www.financial-ombudsman.org.uk.

If you are unsure about your rights or need additional assistance, consider consulting a financial advisor or legal expert to guide you through the claims process.