Car Finance Compensation
Car Finance Compensation. If you have been mis-sold a car finance contract, you have received bad advice. If you have purchased a car with a car finance package, chances are you signed up for a deal with a higher loan rate. Due to this, you are eligible for car finance compensation.
You might utilize a vehicle finance deal to purchase a new or used car. In these sorts of financing agreements, the customer selects a vehicle, which is normally done at a car dealership. The car is sold to the finance company by the car dealership. The car is then owned by the credit company. The finance provider permits the consumer to utilize the car in exchange for making the agreed-upon monthly payments. They can be handy if you wish to return the automobile after a set period of time or if you want to put off buying the car completely. You have bought a car within the last 10 years, right? Just like 90% of all new car purchases were more than likely secured on Car Finance
Car finance companies have intentionally been selling buyers much higher loan rates. In most cases, this was necessary to maximize the car finance company’s commission.
For you what does that mean? It means that your car may have been sold to you at a higher loan rate than it was needed to maximize the commission gained. You may have been marketed a plan that was deemed too expensive for you in the first place, in which case you may be eligible for car finance compensation.
As a result in March of this year, the Financial Conduct Authority (FCA) released a report on automotive finance. According to their findings over 560,000 clients were paying 50% more than they needed to on their car finance packages.
You will also need to know if you were effective and what steps you should take to rectify the situation.
The final balloon payment is one of the risks of a PCP contract. Do not let this final payment come as a surprise to you.
Many people under a PCP contract do not realise the cost of this payment.
As a result, the Financial Conduct Authority conducted a survey, which revealed the following (FCA).
- (FCA) estimates that mis-sold PCP costs consumers £300 million per year.
- When you are taking out Car Finance just 28% of dealers address the ramifications of skipping payments and the total amount due.