PPI? Is car finance bigger? Complaints have gained in numbers for car finance complaints and claims. Drivers in the thousands might be in line for compensation.
The fear of losing billions of pounds to brokers and lenders who potentially took undisclosed commissions, has never been statistically higher which has caused multiple claims to be submitted. As a result, industry analysts’ estimate a pay-out event double the scale of PPI.
What did the FCA ban?
Before the Financial Conduct Authority (FCA) banned the practise in 2021, it is estimated that 40% of car finance deals involved ‘discretionary commission arrangements’ prior to the ban.
The Financial Ombudsman has since received over 10,000 complaints after suspecting their broker or lender to have mis-sold them car finance. Over 15,000 cases were recorded during the 2012 peak in response to the PPI claims scandal.
Why might car finance claims be double the complaints of PPI?
The scale of complaints, and claims already made, place it as a high expectation that the car finance claims scandal, may be double the complaints of PPI. There is logic behind this statement.
To prove this, Consumer Redress Association is a trade body for claims management companies. Simon Evans spoke on behalf, addressing the likelihood that many people bought more than one car during the period, which means the number of claims being lodged could potentially be double those of PPI.
“What we are seeing through our member firms who are engaging with consumers at the moment is that actually each person has an average of about 2.3 claims. So they have had two or three cars in that period and all of those qualify for a claim.”
Martin Lewis
Martin Lewis issued the comment “in value terms, car finance mis-selling is potentially going to be the second biggest reclaim pay-out in UK history – possibly over £10bn repaid – which could even provide a flip to the economy as PPI did.”
Close Brothers set aside £400m
Close Brothers themselves have stored away £400 million in anticipation for The FCA investigation outcome.
How to claim?
Given that car finance complaints, and therefore claims could be double the complaints of PPI, it may make sense for you to check your eligibility.
Being aware of this, if you financed a car between 2007 – 2021, but depending on your lender possibly 2007 – 2023. If you entered into such an agreement within the last 10 years, you’re potentially eligible for redress. My Car Finance Claim works as a trading style of Barings Law, who specialises in consumer redress and manages cases for numerous clients across various claim types.
My Car Finance Claim offer no win, no fee based claims for PCP and HP deals, potentially mis-sold. Making a claim with My Car Finance is a simple 3 step process. With just a few details, you can begin an application today. Enter your registration into our automatic number recognition system to get started. Click the button below to begin!