It's difficult to say exactly how much compensation you might receive from a successful mis-sold car finance claim in the UK.
The amount of compensation awarded varies depending on several factors, including:
- The size of the original car finance loan. Generally, the larger the loan, the higher the potential compensation.
- The length of the car finance agreement. Claims involving longer loan terms may result in more compensation.
- The difference between the interest rate you were charged and the rate you should have received if the car finance agreement had been sold correctly. A significant difference in interest rates could lead to a higher compensation amount.
- Any additional charges or fees that were mis-sold to you, such as GAP insurance you didn't need. A successful claim can lead to a refund of these charges.
- The impact of the mis-selling on you. If you experienced financial difficulty or emotional distress due to the mis-selling, you may be eligible for additional compensation.
Here are some examples to illustrate the point:
- Imagine you were mis-sold car finance for a £10,000 loan with an interest rate that was 3% higher than you should have been offered. Over the course of the agreement, this could lead to a significant overpayment. A successful claim might involve a refund of the excess interest charged.
- In another case, you might have been pressured into GAP insurance that wasn't suitable for your needs. If the mis-selling of GAP insurance caused you financial loss, you could be entitled to a refund of the premiums paid.
It's important to remember that these are just examples, and the actual compensation you receive will depend on the specific details of your claim.
Here are some resources that can help you estimate potential compensation:
- The Financial Ombudsman Service (FOS) website has a tool that can give you a general indication of the amount you might be able to claim: https://www.financial-ombudsman.org.uk/businesses/resolving-complaint/understanding-compensation
- Citizens Advice offers free guidance on car finance mis-selling: https://www.citizensadvice.org.uk/consumer/buying-or-repairing-a-car/the-car-you-bought-is-still-on-hire-purchase/
We recommend speaking with a claims management company specialising in car finance mis-selling or a solicitor for a more accurate assessment of your potential compensation. They can review your individual circumstances and advise you on the best course of action.
