Questions and Answers: Reclaiming Car Finance

I'm in negative equity on my car finance. Can I still reclaim for mis-selling

A: Yes, even if you're in negative equity on your car finance agreement, you may still be able to reclaim compensation for mis-selling.

Here's why:

  • Mis-selling focuses on whether you were given the right information to make an informed decision about the car finance agreement.
  • If the car finance company misrepresented the terms of the agreement or failed to assess your affordability properly, you could have grounds for a mis-selling claim regardless of the car's current value.

Here are some things to consider:

  • Evidence of mis-selling: The strength of your claim will depend on being able to prove mis-selling occurred. This might involve documentation like emails, recordings of conversations (if permitted by law), or written quotes demonstrating a significant difference from what was agreed upon.
  • Impact of mis-selling: It's important to show how the mis-selling directly affected you. For example, if you were pressured into a longer loan term than affordable or a higher interest rate than you qualified for, this could be grounds for compensation.

What to do next:

  • Gather evidence: Collect any documents or communication that might support your mis-selling claim.
  • Contact a claims management company: Regulated claims management companies specialise in helping people pursue mis-selling claims and can advise you on the validity of your case.
  • Seek legal advice: A solicitor can provide specific guidance based on your situation and help navigate the claims process.

Important to remember:

  • Making a claim doesn't guarantee success: Each case is assessed individually.
  • The claims process can take time: Be prepared for the possibility of waiting several months for a resolution.

Further Resources:


Citizens Advice: https://www.citizensadvice.org.uk/consumer/buying-or-repairing-a-car/problems-with-a-used-car/
2024-05-27 10:19