If you believe you’ve been mis-sold a car finance agreement, you have the right to reclaim any money you may have overpaid. Filing a car finance claim might seem daunting, but with the right guidance, you can navigate the process smoothly and increase your chances of a successful outcome. This guide will walk you through each step of filing a car finance claim, from gathering documentation to submitting your complaint.
Why File a Car Finance Claim?
Filing a car finance claim is important if you suspect that your finance agreement was mis-sold. Mis-selling can occur in various ways, such as through discretionary commission arrangements (DCAs), where dealers or brokers inflate interest rates to earn higher commissions without informing the customer. If you were mis-sold your car finance deal, you could be entitled to reclaim the extra money you paid.
Step 1: Review Your Car Finance Agreement
The first step in filing a car finance claim is to thoroughly review your car finance agreement. Look for any terms that were not explained to you, especially those related to interest rates, commissions, and additional fees. Pay close attention to whether the interest rate was presented as fixed and non-negotiable, as this is a common sign of mis-selling.
If you don’t have the original paperwork, don’t worry. You can request a copy from your finance provider or use our free car finance check tool to help you assess whether your deal was mis-sold.
Step 2: Gather All Relevant Documentation
Before filing a claim, it’s essential to gather all relevant documents. This includes:
- Finance Agreement: The original contract you signed when you took out the finance deal.
- Payment Records: Bank statements or payment schedules showing the amounts you’ve paid.
- Correspondence: Any emails, letters, or notes from conversations with the dealer or broker.
Having these documents organised will make it easier to build your case and provide evidence to support your claim.
Step 3: Identify Signs of Mis-Selling
To strengthen your claim, you’ll need to identify specific indicators of mis-selling. Common signs include:
- Undisclosed Commissions: If you were not informed that the interest rate included a commission for the dealer or broker.
- Pressure to Sign: If you were pressured into signing the agreement without fully understanding the terms.
- Lack of Clarity: If the terms of the agreement, such as the interest rate or final balloon payment, were not clearly explained to you.
Our Mis-Sold Car Finance Explained guide provides more detailed information on how to identify these red flags.
Step 4: File a Complaint with Your Finance Provider
Once you’ve gathered your documentation and identified signs of mis-selling, the next step is to file a formal complaint with your finance provider. Here’s how to do it:
Draft a Complaint Letter:
In your complaint letter, clearly state that you believe your car finance agreement was mis-sold. Include details of how the mis-selling occurred, such as undisclosed commissions or unclear terms.
Attach copies of your supporting documents, including your finance agreement and payment records.
Submit the Complaint:
Send your complaint letter to your finance provider. Make sure to keep a copy for your records and note the date you submitted it. Many providers accept complaints via email, but you can also send it by post if preferred.
Wait for a Response:
The finance provider is required to acknowledge your complaint and will typically investigate the matter. You should receive a response within eight weeks. If they agree with your claim, they may offer compensation.
For a more detailed guide on drafting your complaint and what to include, visit our How to File a Car Finance Claim page.
Step 5: Escalate Your Claim if Necessary
If your finance provider rejects your complaint or offers an unsatisfactory resolution, you can escalate the claim. Here’s how:
Contact the Financial Ombudsman Service (FOS):
The FOS is an independent body that resolves disputes between consumers and financial services. If your claim is rejected or not resolved within eight weeks, you can take your case to the Ombudsman.
Seek Legal Advice:
If you’re unsure about how to proceed or if your case is particularly complex, consider seeking advice from a legal professional or a finance claims expert. Our team can assist you in escalating your claim and ensuring it’s handled correctly.
Why Choose Us to Handle Your Claim?
Filing a car finance claim can be a time-consuming and complex process. That’s why many consumers choose to work with professionals who specialise in reclaiming mis-sold finance. Our company offers a no-win, no-fee service, meaning you only pay if your claim is successful. We handle all aspects of the process, from filing the initial complaint to negotiating with the finance provider on your behalf.
Learn more about why you need a finance claims expert on your side.
Conclusion: Start Your Car Finance Claim Today
If you believe you’ve been mis-sold a car finance agreement, don’t delay—start the reclaim process today. By following the steps outlined in this guide, you can take control of your situation and potentially recover a significant amount of money. Use our free car finance check to determine your eligibility and let our team guide you through the claim process.
Start Your Car Finance Claim Now
