If you have ever financed a car, there’s a good chance you were mis-sold the deal. Car salesmen were notorious for inflating interest rates, hiding commissions and more.
Many car finance consumers in the UK may be wondering how do you know if you were mis-sold car finance?
In this article, we’ll show you how to check if you were mis-sold your car finance and what to do about it if you were.
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If you think you were mis-sold your car finance, the first thing you need to do is locate your finance agreement. Once you have that, there are a few key things to look for:
– Hidden commissions: these will usually not be in your agreement hence for the mis-selling as Finance companies that sell financial products in the UK need to follow strict legislation ensuring that consumers are protected.
On your finance agreement located at the top of 1 of the pages, it should have in bold “consumer credit act regulated by the consumer credit act 1974″
This piece of legislation is regulated by the FCA, lenders must follow right that comes with this act such as t&Cs must be fully explained also credit care must take place to make sure that the customer can afford the finance
– Inflated interest rates: car finance companies often inflate the interest rate to make more money from you. If you think the interest rate on your agreement is too high, it’s worth checking with a different lender to see if they could offer a better deal.
-Did not explain how the car finance works: a good salesman should take the time to explain how the finance agreement works and what you’re signing up for. If they didn’t do this, it’s possible you were mis-sold your finance.
-Ineffective credit checks: lenders are required to carry out credit checks to make sure you can afford the finance agreement. If they didn’t do this or didn’t do it properly, you may have been mis-sold your finance.
–Unfairly Charged Fines And Fees: if you’re being charged unfair fees or fines, this is another sign that you may have been mis-sold your finance.
-brokers not regulated: if the broker is not regulated by the fca then this Is an unfair way of selling to customers as they are not bound by certain rules.
If you find that you were mis-sold your car finance, don’t worry – there are a few things you can do about it.
– Get in touch with the lender: if you think you’ve been mis-sold, the first thing to do is get in touch with the lender and explain the situation. They may be willing to renegotiate the terms of your agreement.
– Switch to a different lender: if the lender isn’t willing to help, you may be able to switch to a different one. This is usually only possible if you’ve already paid off some of the loan, but it’s worth checking with other lenders to see if they can offer you a better deal.
-use a car finance solicitor: Due to the FCA finding many solicitors are now starting to take on consumer claims due to the amount that can be claimed back in compensation.
If you would like to have your car finance taken on with a solicitor on a no win no fee basis click here.
Please keep note using a solicitor on a no win no fee basis will incur a fee upon successful collection.
We hope this article has helped you understand how to spot if you were mis-sold car finance, and what you can do about it if you were. Remember, if you think you’ve been mis-sold, the best thing to do is get in touch with the lender and explain the situation.
They may be able to help you out. Thanks for reading!
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