Does a cooling-off period apply to car finance agreements, and can it help with mis-selling claims?
Yes, a 14-day cooling-off period applies to most car finance agreements in the UK, as dictated by the Distance Selling Regulations. This period offers a window to potentially help with mis-selling, but it's crucial to understand its limitations:
Cooling-Off: A Safety Net:
The cooling-off period allows you to cancel the car finance agreement within 14 days for any reason, providing a safety net if you have second thoughts or buyer's remorse.
Cooling-Off Doesn't Address Mis-selling:
Cancelling simply exits the agreement. It doesn't necessarily address potential mis-selling, such as being misled about interest rates or hidden fees.
Mis-selling and Making a Claim:
If you believe mis-selling occurred, you can make a separate claim to potentially recover compensation for financial losses caused by the misleading information or practices.
The timeframe for making a mis-selling claim is typically longer than the 14-day cooling-off period.
How Cooling-off Can Be Helpful (or Not) with Mis-selling:
Exiting a Potentially Mis-sold Agreement: The cooling-off period can be useful if you suspect mis-selling and want to cancel the agreement quickly.
Doesn't Guarantee Compensation: Cancelling under cooling-off doesn't automatically grant you compensation if mis-selling is proven. You might still need to pursue a mis-selling claim.
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.
We Recommend:
For free guidance on claiming mis-selling, consider contacting Citizens Advice or the Financial Conduct Authority (FCA):