Is there a time limit for claiming mis-sold car finance?
In the UK, there are generally two time limits to consider when claiming mis-sold car finance:
Six years from the date of the agreement: This is the standard limitation period for financial mis-selling claims in the UK. It means you typically have six years from the date you signed the car finance agreement to make a claim.
Three years from when you discovered the mis-selling (with a reasonable timeframe to act): The Financial Ombudsman Service (FOS) may consider claims even if it's been longer than six years since the agreement, provided you weren't aware of the mis-selling at the time and took steps to claim within a reasonable period of discovering it. This timeframe is usually considered to be around three years.
Here's an example:
Imagine you financed a car in 2018. In 2023, you discover the salesperson didn't tell you about a crucial fee, potentially inflating your repayments. Under the first time limit, you would have until 2024 (six years from the agreement) to make a claim. However, even if it's past 2024, you might still be able to claim through the FOS if you can demonstrate you only discovered the mis-selling in 2023 and acted reasonably soon after.
It's important to note:
These are general guidelines, and specific circumstances can influence the time limits.
Seeking legal advice can help determine if you're still eligible to claim despite exceeding the standard six-year limit.