Car Finance Mis-Selling: The Next PPI Scandal in the Making?
18th of May 2023
In a recent article published by The Guardian, concerns were raised about the rise of claims management firms targeting individuals who may have been mis-sold a car finance deal. It suggested that car finance could become "the next PPI" (Payment Protection Insurance) scandal, referring to the widespread mis-selling of PPI policies in the past.
The Financial Ombudsman Service reported a significant increase in complaints about car finance lenders, driven by third-party firms submitting claims on behalf of individuals. Between April 2022 and March 2023, there were 11,452 complaints, compared to 6,128 in the previous financial year. Furthermore, around 90% of the complaints in 2022-23 were brought by claims management firms and law firms.
The Concerns and Clear Money Claims' Approach
These claims management companies typically operate on a "no win, no fee" basis, taking a percentage of any compensation awarded. However, there are concerns that affected consumers could be missing out on the full amount of compensation owed to them. Martyn James, a consumer rights expert mentioned in The Guardian's article, highlighted the similarities between the behavior of these claims management firms in the car finance sector and the PPI mis-selling scandal.
At Clear Money Claims, we understand the importance of transparency and empowering individuals to make their own claims. While claims management firms can be useful in certain situations, it is not necessary to use them to make a complaint. The Financial Ombudsman Service is available for consumers to use directly, without the need for a third-party intermediary.
How Clear Money Claims Can Assist You
Comprehensive Assessment: Clear Money Claims offers a thorough assessment of your case, evaluating the strength of your mis-sold car finance or PCP claim. We will analyze the key elements of your agreement and determine if there are grounds for compensation.
Streamlined Claims Process: Our experienced claims handlers will guide you through the entire process, handling all necessary paperwork and documentation. We will communicate with relevant parties on your behalf, including lenders, dealerships, and regulatory bodies, ensuring your claim is efficiently managed.
Expert Guidance: Our team of experts specializes in car finance mis-selling cases and understands the complexities of the industry. We provide professional guidance tailored to your specific situation, explaining your rights, legal options, and potential compensation avenues.
Transparent Communication: Clear Money Claims values open and transparent communication. We will keep you updated on the progress of your claim, providing regular updates and promptly addressing any concerns or queries you may have.
Maximizing Compensation: Our goal is to secure the maximum compensation possible for your mis-sold car finance or PCP claim. We will diligently assess all financial losses, including excessive interest charges, unfair fees, and any negative impact on your credit score. Our skilled negotiators will work towards a fair resolution, fighting for your rights every step of the way.