Consumers have always been able to complain directly to the lender that provided their finance agreement, without using a claims management company. Increased attention on the proposed redress scheme has also raised awareness of the different routes available, each with its own practical considerations. Understanding these options may help consumers decide which approach best suits their individual circumstances.
Option 1: Make a Complaint Directly to Your Lender
Consumers can submit a complaint directly to the lender that provided their car finance agreement without paying a claims management fee.
Managing the complaint yourself means you are responsible for providing any relevant information requested by the lender, responding to correspondence and deciding whether to accept any offer that may be made.
For some consumers, particularly those with older agreements or finance from multiple lenders, gathering the necessary information and managing the process may require additional time.
Option 2: Wait for the FCA’s Proposed Redress Scheme
The Financial Conduct Authority has been consulting on an industry-wide redress scheme covering certain motor finance complaints. Depending on the final outcome and any subsequent legal proceedings, eligible consumers may be contacted directly by their lender where appropriate.
Consumers choosing this approach would not normally need to take immediate action unless contacted by their lender. Any offer made would remain their decision to accept, reject or seek further guidance on.
Option 3: Use a Claims Management Company
Some consumers choose to appoint a regulated claims management company to manage the complaints process on their behalf.
Services may include helping consumers obtain information about their finance agreements where possible, corresponding with lenders and reviewing any offers received. Claims management companies charge fees in accordance with their terms and conditions if a claim is successful.
Consumers should carefully review any fee arrangements before deciding whether to use a claims management company.
Understanding the Different Approaches
Each route has advantages depending on an individual’s circumstances, the level of support they require and whether they are comfortable managing the complaint themselves.
Before deciding how to proceed, consumers may wish to consider:
- what information may be needed
- how the complaint process works
- who will manage correspondence
- whether any fees apply
- who will review any offer before it is accepted
Taking time to understand these practical differences can help consumers make an informed decision about how they wish to pursue a complaint.
The Proposed Redress Scheme
The FCA continues to publish updates regarding its proposed motor finance redress scheme. The position remains subject to ongoing legal proceedings and regulatory developments, so consumers should refer to the FCA’s latest guidance for the most up-to-date information on whether the scheme may apply to their circumstances.
About Mis-sold Expert
Mis-sold Expert is a UK-based claims management company authorised and regulated by the Financial Conduct Authority for regulated claims management activities. The company helps consumers understand whether they may have grounds to complain about certain car finance agreements and, where instructed, manages the complaints process on their behalf.
Consumers are not required to use a claims management company and can make complaints directly to their lender without charge.
Disclaimer: This article is provided for general information only and does not constitute legal or financial advice. Consumers are not required to use a claims management company and may submit complaints directly to their lender free of charge. Before deciding how to proceed, consumers should consult the latest guidance published by the Financial Conduct Authority and consider obtaining independent advice where appropriate.