The Role of Experts in Car Finance Claims: Do You Need One?

Processing a car finance claim can be overwhelming because some consumers find it complicated or do not have the time to undergo the rigor of car finance claim compensation, especially since consumers need to check on their car finance agreements, determine if there are hidden fees, and counter check their doubts and worries with the regulations of car financing set by the law. When consumers feel overwhelmed by the process, they think of options such as getting the help of an expert, hence the question, “Do consumers need the help of experts in car finance claims?”

Understanding Car Finance Claims

Car finance commission claims account for 90% of the car finance claims complaints received by the Financial Ombudsman Service. Consumers are seeking compensation because they believe that they were mis-sold of their car finance agreement. They complained because they felt that the car finance agreement was unfair and the commission that the broker received from the deal was not disclosed to them. 

The Role of the Finance Claims Expert 

Car finance claims experts are consumers' allies as they navigate the complex process of car finance claims. As experts, they have specialized knowledge, experiences, and resources that can help consumers get the compensation they deserve. The following are the services that car finance claims experts offer to consumers:

Assessment of the case

These experts help consumers understand the fine print in the contract and fully grasp the car finance agreement that they signed when they purchased their vehicle through car finance. As experts who have intensive knowledge of consumer law and financial regulation, they can identify whether the consumers were misled about a car finance agreement. As experts, they will scrutinize the agreement, help the consumers connect with the lenders, and also look into the consumers' credit history to better assess the strength of the consumers’ claims.

Gathering evidence for a more valid complaint

A strong car finance commission complaint needs valid and reliable evidence. As experts in car finance claims, they know exactly what documents are needed to support the consumer’s complaint. To better support the consumers’ complaints, they will most likely gather the following documents:

• Car finance agreement. This is the most important document that the consumer needs to provide, for it contains the terms that the consumer agreed upon when they bought their vehicle through car finance.
• Records of communications between the consumer and the lender. Communications such as emails, letters, and phone records with the lender can be used as evidence of misrepresentation, pressure selling, or the lender's refusal to provide after-sale services to the consumers.
• Financial Conduct Authority’s (FCA) regulations and policies. These experts are well-versed in the FCA’s regulations and policies governing car finance. Experts would ensure that all consumer complaints are grounded in the FCA's regulations and policies to ensure success and guarantee compensation.

Negotiating for consumers’ rights

Dealing with car finance firms can be intimidating, especially since most consumers feel vulnerable. Car finance claims experts act as advocates, handling all the communication and negotiation on behalf of the consumer. They will leverage their knowledge, experience, and expertise to advocate for consumers’ rights and guarantee the consumers the best possible results out of their complaints.

Providing legal expertise to complicated complaints

In some instances, consumers’ complaints are ignored, and the lenders refuse to cooperate, so consumers may need to take legal action. In these instances, experts such as solicitors can provide consumers with invaluable legal representation and guidance. They can help the consumers navigate the court processes, present the case effectively, and ensure that consumers’ rights are protected.

The Two Car Finance Claims Experts - which one to choose?

If consumers are considering seeking experts’ help, they can either seek assistance from the Claims Management Companies (CMCs) or the solicitors.

The Claim Management Companies

The CMCs are private businesses that act as intermediaries between the consumer and the car finance firm, handling the entire car finance claims process from beginning to end. Often, the CMCs offer a ‘no win, no fees’ basis. This means that consumers are not required to pay upon submission of complaints; they will only be charged if the complaint is successful and the consumer is provided with compensation. Here’s what CMCs offer to the consumers.

• Free initial consultation. The majority of CMCs offer a free consultation to assess consumers’ cases. This gives them the opportunity to discuss with the consumers the services they provide and how they can help ensure compensation at the end of the complaint process.
• Assessment of consumer’s case and gathering of evidence. CMCs will analyze the consumer’s case to assess how they can properly help the consumer. At the same time, they will assist in gathering the necessary evidence to help consumers build a strong case.
• Negotiation and settlement. Once the consumer decides to coordinate with CMCs, the organization will communicate with the lender and negotiate a settlement on their behalf. 
• Legal expertise. Legal expertise is sometimes needed, and CMCs have in-house legal teams or work with solicitors to provide consumers with legal representation. 

Consumers must note that CMCs typically charge a fee, a percentage of their compensation. Based on the Financial Conduct Authority, here is the possible amount that consumers need to pay for the claims that started on or after March 1, 2022.

The solicitors

The obvious advantage of seeking assistance from solicitors is that these solicitors are lawyers who operate under a very strict code of conduct. These solicitors have intensive experience handling car finance claims and a list of successful cases. For instance, in the case of Mrs. Young vs Black Horse, handled by Bott and Co., the result set legal precedents in the car finance industry. Here’s why working with solicitors can be a great option:

• Solicitors always act with integrity

When working with a solicitor, consumers can be confident that their representation is committed to honesty and fairness in every aspect of their claim. It’s the solicitor’s duty to act with integrity, which means that they must provide consumers with truthful advice, set realistic expectations, and never mislead or pressure them in their decisions.

• Solicitors maintain their independence

Solicitors do not allow outside influences, such as lenders or other parties, to sway their judgment or actions. This independence assures consumers that every step they undergo is solely focused on advancing the consumer’s claim and achieving the best possible outcome for them.

• Acting in consumers’ best interest

One significant benefit of working with a solicitor is their obligation to always act in the best interest of consumers. This principle guides them in every decision, whether in negotiating a settlement, gathering evidence, or advising consumers of the next steps of the car finance claims compensation process. Solicitors always prioritize consumers’ needs and goals, ensuring they receive the strongest possible representation and the compensation they deserve.

• Protecting consumers’ money and asset

Solicitors are also committed to safeguarding the consumers' financial interests. Whether they handle compensation or payouts, solicitors must protect consumers’ money and assets. This ensures transparency, security, and responsibility in all financial transactions. Consumers can rest easy knowing that their funds are in safe hands throughout the claims process.

By working with a solicitor, consumers gain more than just legal expertise—they gain a partner who is ethically obligated to protect and advance their interests. This commitment ensures that their claim is handled with professionalism, integrity, and care, giving them the best possible chance of achieving a successful outcome.

Weighing the factors: When to seek expert support?

It’s always a consumer's personal decision whether to enlist the help of a car finance claim expert. There is no one-size-fits-all answer. Here are some of the factors that consumers might consider when deciding whether to seek help from an expert.

Complexity of the claim

• For straightforward claims, such as clear evidence of undisclosed commission apparent in the car finance agreement, consumers may handle it themselves. They can check online resources such as https://www.reclaim247.co.uk/.
• If the complaints involve hidden fees, affordability issues, or potential breaches of FCA regulations, a consumer may consider seeking expert help for the claims process can be complicated. 

Consumers’ confidence and knowledge

• If the consumer is comfortable with legal and financial matters and confident in their ability to understand legal jargon, gather evidence for complaints, and negotiate with the car finance firm, then they can choose to process their complaint independently.
• If the consumer feels overwhelmed, unsure how to begin the process, and lacks the confidence to deal with legal matters, an expert can provide much-needed support and guidance.

Availability of consumers’ time

• The complaints process takes time and energy, and if the consumer has ample time to spend on the entire claim process, they can undergo the rigor of the car finance claim process themselves.
• If the consumer is preoccupied with work, family, or other commitments, an expert can relieve the burden and handle the claim process on their behalf.

Financial resources

• If the consumer feels that paying a solicitor or a CMC is another financial burden, they can consider handling the claim themselves and seeking advice from online resources.
• If the consumer can afford legal fees and commissions, seeking an expert’s help is the best option.