Making a mis-sold PCP car finance reclaim is easy nowadays. In fact, there are several options available to you.
From car insurance to road tax and other expected and unexpected expenses or levels, there is more to car ownership than meet the eye.
Do you know that you may be eligible for compensation if you are paying or used to pay for car finance, especially, within the last ten years?
Many of these car finance deals were identified mis-sold. Recently, the UK’s Financial Conduct Authority (FCA) announced that it’s looking into the issue, which can lead to compensations for affected car owners.
The FCA is assessing the extent of the problem with hidden and unfair car finance commission practices, with millions of people potentially affected. The authority is due to set out its conclusions later in September.
Potentially, people who bought cars, vans or motorbikes on personal contract purchase or hire purchase between April 2007 and January 2021 have claims.
How to make car finance reclaim
The authority suspected that dealers deliberately signed people up to the most expensive finance agreement instead of the most suitable.
In essence, this is mis-selling and as such affected people will be due compensation as a result.
Typically, car finance reclaim refers to the process of seeking compensation or refunds for mis-sold car finance agreements. Claiming your compensation for mis-sold finance is easy and simple if you know what you are doing.
There are several online platforms offering services to help make your claim on a No Win No Fee basis. However, successful completion of your claim may lead to a certain % charge on your compensation.
Whatever ways you want to go about it, below is a general outline of the steps involved in reclaiming car finance:
#Step 1]. Gather documentation
First of all, you will need to have access to and collect all relevant documents related to your car finance agreement. This will surely help you to build your case against your auto finance and lending company.
In most cases, these documents include the contract, payment records, correspondence with the lender, and any other relevant paperwork.
#Step 2]. Review agreement terms
This is an essential step to take in order to identify if there has been any kind of foul play in your contract with the lender.
You will have to carefully review the terms of your car finance agreement to establish any potential issues or discrepancies that may indicate mis-selling.
By doing this, you will be able to discover common issues which include undisclosed fees. Also, you may be able to pinpoint misleading information about interest rates and or inappropriate lending practices.
SEE ALSO: Why Now Is The Best Time To Open a Used Car Dealership
#Step 3]. Identify mis-selling
Identifying mis-sold car finance from the documents you reviewed is an extremely important task for you to establish your claim. With this, you will be able to determine if you were mis-sold the car finance agreement.
Bear in mind that in order to be able to successfully make a claim, you may have to establish that the finance was unsuitable for your needs.
Additionally, situations where the terms were not clearly explained or you were pressured into the agreement may need to be established.
#Step 4]. Contact lender
Having discovered issues or misleading information about interest rates and or inappropriate lending practices, then you can contact your lender.
Moreover, reach out to the lender or finance company to express your concerns about the issues you have identified with the contract. Then, you can make a claim to request a refund or compensation for mis-selling.
Mind you, you’ll have to provide them with details of why you believe the agreement was mis-sold and any supporting evidence you have gathered.
#Step 5]. File a complaint
However, if the lender does not provide a satisfactory resolution, then you can file a complaint at this stage. This means you can escalate the issue by filing a formal complaint with the lender’s complaints department.
Additionally, you have to make sure you follow their complaints procedure and provide all relevant details and documentation to support your case.
#Step 6]. Contact financial ombudsman service (FOS)
However, if you are unable to reach a resolution with the lender, you can escalate your complaint to the Financial Ombudsman Service (FOS).
The FOS is an independent organization that resolves disputes between consumers and financial institutions. It offers a free service that settles complaints between consumers and businesses that provide financial services.
The organisation helps consumers reach financial dispute resolution fairly and impartially. Additionally, it has the power to put things right.
#Step 7]. Seek legal advice
Seeking legal advice may be the best option, especially if your complaint is particularly complex. Furthermore, you could make use of this if you encounter difficulties in resolving the issue with your lender.
In other words, you should consider seeking legal advice from a solicitor or consumer rights organization specializing in financial matters.
Conclusively
However, stay proactive and follow up with the lender or the FOS regularly to check on the progress of your complaint. Also, you should make sure that the people or organisation involved appropriately handle your case.
By the way, it’s important to be aware of the fact that the process of reclaiming car finance can vary from one person or company to another.
In fact, it largely depends on the specific circumstances of your case and the relevant laws and regulations in your jurisdiction.
Therefore, it’s advisable to thoroughly research your rights as a consumer and seek professional advice if needed.
References / Resources
- 👉 Million consumers make car finance mis-selling complaints in a month. Written By: Neil Rose. Published on: March 11, 2024.
- 👉 Car finance firms ‘facing headache’ over potential compensation claims. Written By: Anna Wise. Published on: April 2, 2024.
- 👉 Some car finance companies almost certainly guilty of commission failings, says FCA. Written By: John Bowman. Published on: March 15, 2024.
- 👉 FCA Vows Swift Response to Car Loan Issues. By: Maddy Osman. Published on: December 6, 2000.
- 👉 Car finance mis-selling investigation: what you need to know. Written By: Ian Aikman & Stephen Maunder. Published on: January 16, 2024.
- 👉 Who can claim compensation for car finance?. Written By: Josh Kirby. Updated on: January 16, 2024.
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