A LANDMARK legal case earlier this month revealed how millions more drivers could be owed compensation in a car finance mis-selling scandal.
Lenders are now set to be given more time to look at complaints after the court decision opened the floodgates to more claims.
If you purchased a car on personal contract purchase (PCP) or hire purchase arrangement before January 28, 2021, you could be due thousands in compensation.
Outlining how to apply for compensation, consumer expert Jane Hawkes said: “It might seem daunting but making a claim is quite straightforward.Contact your lender to find out if your finance agreement included a Discretionary Commission Arrangement or other commission arrangements. If you receive a response which confirms your enquiry (usually within 8 weeks) lodge an official complaint.
The FCA will then complete an investigation and review.
“If you do not have any original documents, you can still make a claim. Just ask your lender if any discretionary commission was added to your agreement. They are obliged to provide this information. You can also check your credit report for details of a summary of your credit history. This will include details of lenders so you can make contact with them if you think you have been mis sold car finance. If you can’t remember the finance provider, contact the dealership to see if they can provide this information.
“It’s worth remembering that The Consumer Rights Act 2015 has a fairness test. This means that key terms of a contract need to be crystal clear before purchase and not hidden in any small print. If your claim is refused you can refer your case to the Financial Ombudsman Service. There are no costs involved in this. You do not need to use a claims management company which will take a good chunk of commission on any compensation paid. If you’re entitled to it, claim it. Don’t be fobbed off.”