What steps should I take to cancel a car finance agreement within the cooling-off period if I suspect mis-selling?
If you suspect mis-selling and want to cancel your car finance agreement within the cooling-off period, here are the steps to take:
The All-Important Cooling-off Period:
You have a legal right to withdraw from most car finance agreements within a 14-day "cooling-off period" from the date you sign the agreement.
Taking Action to Cancel:
Contact the Lender: Inform the lender you wish to cancel the car finance agreement under the Distance Selling Regulations. Explain your decision and briefly mention your suspicion of mis-selling (without going into detail).
Confirmation in Writing: Follow up your phone call with a written letter or email confirming your cancellation request and clearly stating the date. Keep a copy for your records.
Returning the Car: Arrange to return the car to the dealership in the same condition you received it, along with any paperwork.
What to Expect:
Settling Any Fees: You might be liable for a fee to cover the dealership's depreciation costs if you've driven the car excessively during the cooling-off period.
Repaying Used Credit: If you've already received some of the loan amount, you'll need to repay it to the lender.
Seeking Further Guidance:
Time is of the Essence: Act promptly. The 14-day window to cancel under the cooling-off period is strict.
Free Mis-selling Advice: Consider seeking free advice from Citizens Advice or the Financial Conduct Authority (FCA) on mis-selling claims:
Cancelling within the cooling-off period is separate from claiming mis-selling. While cancelling avoids the car finance agreement, claiming mis-selling might allow you to reclaim compensation if mis-selling is proven.
Here's How Reclaimingcarfinance.co.uk Can Help:
We can't offer financial advice or guarantee the success of a claim. However, we can provide general information on car finance mis-selling.
Remember:
Act swiftly if considering cancellation within the 14-day cooling-off period.
Contact the lender in writing to confirm your cancellation.
Seek free advice for guidance on potential mis-selling claims.
By understanding these steps and the importance of the cooling-off period, you can take control of the situation and potentially avoid an unwanted car finance agreement if you suspect mis-selling.