Warning for Drivers Caught Up in Mis-Sold Car Finance Scandals: Don’t Risk Losing Half Your Compensation
Are you one of the many drivers caught up in the mis-sold car finance scandal? If so, you may be entitled to compensation. But before you rush to hire a claims-chasing firm, be aware that they could take a hefty chunk of your money. In this blog post, we’ll explore how you can find out if you are owed compensation and how to keep the full amount for yourself.
The car finance scandal, which involved lenders allowing brokers to set or increase interest rates for customers without their knowledge, was banned by the Financial Conduct Authority in January 2021. Since then, complaints have skyrocketed, with more than 17,000 filed to the Financial Ombudsman Service. Despite this, many lenders have rejected complaints, claiming they did nothing wrong.
If you believe you are owed compensation, you can file a complaint with your lender or broker. You must have used finance, such as hire purchase agreements, to buy a vehicle before January 28, 2021, and your lender or broker must have used a discretionary commission arrangement. If you meet these criteria, you can submit a complaint and potentially receive compensation.
While some drivers may choose to hire a claims-chasing firm to handle their complaint, be aware that these firms can take up to 50% of your compensation, plus VAT. If you want to keep 100% of your compensation, consider filing the complaint yourself using free templates available from consumer rights organizations.
The sheer volume of complaints has overwhelmed many firms, leading the FCA to extend the response deadline to September 25. However, you can still file a complaint now to ensure you are included in any potential compensation scheme. If you are unhappy with the outcome, you can escalate your complaint to the Ombudsman.
In conclusion, if you believe you are owed compensation for mis-sold car finance, take the necessary steps to file a complaint and secure your rightful compensation. Avoid claims-chasing firms that may take a significant portion of your money, and instead, advocate for yourself to keep the full amount. Don’t risk losing half your compensation – take action today to protect your financial interests.