Common Mistakes in Car Finance Claims and How to Avoid Them

Recent updates to the motor finance laws have urged many motorists in the UK to check if they are eligible for car finance claims.  Drivers should know that these changes are making people reassess their financial situations.

When filing a car finance claim, you should focus on every detail and understand the steps involved. After all, even simple missteps can harm your chances.

Knowing the most frequent pitfalls can help you avoid them and improve your claim. Ultimately, this can improve your chances of getting compensation for harm caused by mis-sold contracts. 

Frequent Errors in Car Finance Claims

Here is what you should know: knowing what the common mistakes are is key to avoiding them. Wondering what the usual culprits are? Let us go over them: 

Failure to Understand the Claims Process

Because the regulatory changes are very recent, many people still do not have the full idea of what the claims process is. 

This is especially true as it involves different agencies and services. The Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS) are examples of this.

The first thing to know is that you will not be filing your complaint with the regulatory watchdog. Instead, you need to get in touch with your motor finance provider. Then, you wait for the final response.

If you are not satisfied by the firm’s decision, you can escalate the report to the FOS, with or without a response. Skipping steps can delay or harm your claim. 

Missed Deadlines

Deadlines are a big deal in the car finance claims process. The thing is, many people miss the critical dates because they are not aware of when they apply. 

You can file your complaint right away, but once you have made that first move, you need to be on top of every subsequent deadline. 

To avoid this, consider that each step has its own deadline. Say, your provider issues a response within the prescribed period. Your next step is to consider whether you want to escalate the case to the FOS, but you should do so within six months. 

Lack of Documentation

Rushing the claims process without gathering all necessary documents often leads to incomplete claims and rejection. What you should know is that there are pieces of evidence you absolutely need, while others are critical supporting files. 

You must have your original credit agreement with you, along with the initial disclosure papers and any communication with the lender or broker. These offer insights as to what the final contract looks like compared to how the proposal was presented to you before signing.

It also pays to have supplemental proof like advertisements, brochures, and correspondences with the motor firms. 

Lack of Persistence

Remember that your providers are required to acknowledge your complaint, and a lack thereof can mean they haven’t received your claim or they have been ignoring it. 

Persistence is key when dealing with lenders and brokers, so make sure to keep track of all communications and follow up regularly. Failure to do so could slow down or invalidate your claim. 

Tips for Preparing a Strong Claim

So, filing a claim starts when you complain to the finance provider. While this might sound easy, this is actually the most challenging part. 

Make sure you submit all necessary documents and include as many details as possible about the mis-sold agreement. Key details include your name and policy number, contract date, vehicle's number plate, and address at the time of signing. 

You should also have primary documents such as the signed credit agreement, initial disclosure documents, and pre-contract information. 

After getting all the information and files you need, you must clearly state your intent to file a claim. 

It is better if you can provide more specific information. So, make sure to mention dates, interactions, details of conversations, and documents to strengthen your claim. 

Avoiding Missteps in Filing for Complaints

To further help you increase your chances of success, here are some steps to remember that can save time and reinforce your car finance claim. 

Understand Time Limits

The claims process has strict deadlines. For instance, complaints must be taken to the FOS within six months of the final response. Keep in mind that missing this window could lead to FOS appeal being dismissed. 

Know Your Options

You might be wondering whether you need legal help when filing a complaint or not. What you should know is that FOS offers free services to consumers. The office also suggests seeking help from friends or family for those unfamiliar with the process.

Know When to Seek Professional Help

If you find the situation pretty complex, your best choice is to seek professional help. This can be in the form of claims management companies or lawyers who can help you navigate the complexities of the motor finance industry and its legalities.

Final Thoughts

Mistakes can make or break a motor finance claim. If you are preparing to file a complaint with your provider, make sure to review your contract, submit all necessary evidence, and follow the right steps. 

This way, you can improve your chances of getting the redress you deserve and recover from the harms inflicted by mis-sold agreements.