Response to the Car Finance Scandal

response to car finance scandal, car finance agreement

Here, we delve into the issue of mis-sold car finance, the FCA  investigation, and how to claim if you believe you have been mis-sold. 

What was the issue with car finance mis-selling? 

January 2021; the FCA banned discretionary commission agreements.  However, high numbers of people submitted complaints over overcharged interest rates, despite the ban. Before the ban, lenders/brokers were encouraged to alter interest rates in order to gain a higher commission. 

What happened as a result? 

If you purchased a vehicle on finance through a broker/lender who used a DCA, it’s possible that you were overcharged.

What does the FCA have to say? 

The FCA are ‘examining the issue’ using powers under the Financial Services and Markets Act 2000 to look into sales and historical motor finance commission arrangements. This will be applied to several firms. Millions of drivers may acquire compensation after the FCA’s final verdict. 

‘May have been charged too much’ – The FCA regarding certain customers for car finance loans pre-January 2021. 

Have you been affected? 

According to the FCA, you may be affected if these factors apply to you:
Between your broker and lender; a discretionary commission agreement was involved before 28 January 2021, or you purchased a car using HP or PCP finance. 

How much compensation am I entitled to? 

If you qualify you can potentially receive a redress between £2k and £15k but it does depend on your finance agreement amount and APR. 

Who is eligible? 

If you financed a car using a finance agreement between 2007 and 2021, you might be eligible for compensation. 

Were you aware of the commission the dealership would receive? Did the dealer clearly explain the different finance options available? 
Could you afford the credit agreement at the time of the sale? 

Who is My Car Finance Claim? 

We are a trading style of Barings Law; one of the UK’s leading law firms specialising in financial redress claims. We have a proven track record in bringing successful claims against some of the UK’s biggest car finance providers. 

The financial lenders My Car Finance claim deals with are predominantly Moneybarn, Advantage and Oodle. 

How to claim? 

Claiming with My Car Finance is a simple 3 step process. With just a few details, you can begin an application today. Our team are here to do the rest. We can also contact your lenders and obtain the relevant information to assess the validity of your claim if you don’t have them to hand. 

Simple 3 Steps 

Submit your details on our three step form, our experts will meticulously analyse your claim, and if eligible, we can begin the process of getting your funds back. 

We aim to resolve things swiftly and where appropriate, get the compensation you deserve. Start your claim with us today and let our experienced team guide you the rest of the way. 

Click the button below to begin! 

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