What Happens After Filing a Mis-Sold Car Finance Claim?

There’s a lot of uncertainty that comes around when you have done filing your mis-sold car finance claim. What comes next is a question most claimants have, and understanding what steps come after can help ease that worry. It’s also important to set clear expectations on what to expect moving forward in the filing process. 

With claim companies like Reclaim247, you can simplify the journey of learning about how the claims process works. They have a team of experts who know exactly how to handle the complexities of FCA car finance claims, whether paperwork or negotiation. By having someone on your side to guide you in seeking a resolution, you are assured that the path towards whichever compensation you choose is smoother and more efficient as well. 

Here, we’ll guide you on the key stages in filing your mis-sold car finance claim, and give you a few tips for preparing your car finance claim. From the initial review to receiving your compensation, this article will help you stay informed in the process. 

Step 1: Reviewing Your Claim

Once you have finished the tedious process of submitting a claim, then you can start reviewing it, again. This time, conduct an even more thorough check. You do this step to ensure that you did not miss out on anything. If you’re still unsure, then you can tap companies like Reclaim247 who can help you evaluate the details of your finance agreement. PCP experts can also guide you on what you need to know about eligibility, and check if you have provided enough evidence to prove mis-selling. Experts will look for the following signs of mis-selling:

• Undisclosed fees and commission
• Improper affordability checks
• Lack of transparency in the agreement
• Misleading interest rates
• Inaccuracy in the contract vs what was agreed upon

Keep in mind that providing accurate and comprehensive documentation is important at any point in a claims process. Providing documents such as the original finance agreement, proof of payments, and correspondence helps speed up the review process and can also strengthen the claim. 

Reviewing thoroughly will help speed up the process as you’re sure there won’t be problems with incompleteness or inaccuracy. You don’t want any missing or incomplete information because it would lead to unnecessary delays. It’s always best to double-check that all necessary paperwork is included before submitting your documents.

Through a claims company, you can ensure that your case is built on solid evidence, which sets up the foundation for a strong and successful claim. 

Step 2: Contacting the Lender or Dealer

Talking or reaching out to the lender or dealer is the next step. However, In cases where you feel uncomfortable contacting them, don't worry as the claims company can do it for you. It's also better if you let them contact the dealer, as they know exactly how to communicate in situations like this. They will formally present your claim and request a response on your behalf. 

To get a glimpse of what happens next, here’s the process involved. 

1. Acceptance of the Claim

In this step, the lender or dealer taps on the option to accept responsibility and compensate you for the mis-sold PCP claim. This is the most ideal option for you and the lender as it will cut the time spent on arguing the case. For lenders who believe their clients really have been mis-sold due to the hard evidence, accepting the claim is a lot quicker. Meanwhile, on the claimant’s side, this offers a swift resolution. 

2. Request for further evidence

Depending on the evidence you gave upon submission, some cases will require the lender to ask you for additional documentation before they come up with a decision. This happens especially if the lender thinks they have explained the terms thoroughly and evidence shows it was included in the clause. This is why it’s important to keep note of verbal agreements as it will serve as another proof for you if you submit a claim. Now the good thing with a claims company is that they help you out in providing the required information to address these requests more efficiently. 

3. Dispute or Rejection

More often than not, the lender will dispute your claim or in worst-case scenarios, reject it outright. These scenarios may cause you stress, and you’ll certainly feel bad. However the claims company is experienced in handling situations like this. They will work right away to challenge your response. 

When contacting the lender, it’s recommended to tap the help of a claims specialist so they know how to address your dealer and have more experience in doing such and negotiating with other parties on this. 

Step 3: Resolution Options

After the dealer has reviewed your claim, the next possible outcome is the resolution. There are different resolutions possible in your case. 

1. Claim approval with Compensation or PCP Refund

Should the dealer accept responsibility, which is exactly what you want to happen, then they may agree on refunding you the amount which you have overpaid. Refunds include the whole amount which was overcharged to you, such as interest, hidden fees and even the commission payments which were not disclosed. There are also cases where the lender opts to just deduct the amount you overpaid on your current balance, adjusting it so it fits your finance agreement.  

2. Partial Payment or Counter Offer

Some lenders will accept the responsibility but not all of it, and this is when a partial payment or counteroffer is made. In this scenario, they may offer less than the amount you requested and propose a partial settlement instead. If you’re handling this on your own, you may think this is okay rather than not having any refund at all. But with a claims specialist, they will ensure you receive a fair outcome, whether it be a partial payment or full. 

3. Rejection or Escalation

Unfortunately, not every claim will be successful. There are lenders who will reject your claim, deny it, or dispute the validity. Some may even reason that you have missed out the deadline for motor finance complaints. However, it does not mean you can’t win this claim anymore. Rejection usually happens when you raise a claim, but with companies like Reclaim247, there’s even higher chances of succeeding, as they help you strengthen your case. 

Negotiating your claim may not be as easy, but there are experts you can tap to help you pave your way throughout the process smoothly. They have the experience and ensure to prioritise your best interests especially when reaching a settlement. Claim companies know how to evaluate and maximise the value of your claim. 

Step 4: Escalating to the Financial Ombudsman Service

The only option left if your case still remains unsolved, or after it was rejected by your lender, is to raise your concern to the Financial Ombudsman Service (FOS). This is an impartial organisation, whose job is to review disputes that arise between consumers and different financial institutions. The process is simple but can be confusing if you aren’t well informed of how it works. 

Here’s how the process works:

1. The claim company will submit your case to the Financial Ombudsman Service and hand them all your supporting evidence. 
2. After receipt, the Ombudsman then conducts their review of your claim, and considers all the facts and regulations.
3. The Ombudsman will then make a decision on whether the lender is obligated to give you your compensation or refund. 

It’s best to know that the Financial Ombudsman process is long, and can take weeks to months. It will also depend on the workload of the Ombudsman and the complexity of your case. It will certainly require you to be patient, but this way you can ensure a fair and unbiased resolution. 

Step 5: Receiving Compensation

After a successful claim, your compensation will be processed as follows:

1. Refunded fees or Overpayment: You will be given a direct payment for any fees that was overcharged, may it be interest, or undisclosed commission.
2. Adjusted Loan Balance: If by the time your claim gets approved, you are still repaying the car finance, then the lender might opt to adjust the terms of the agreement and reduce the outstanding balance, which means no cash will be paid outright. 
3. Additional Payouts: There are cases where a claimant would receive additional payment or an extra compensation for financial distress which was caused by mis-sold agreements. 

Timelines for receiving compensation

Refunds don’t happen within the day you get your claim approved. It may take weeks in general, but still, it can vary depending on the dealer’s policies and the administrative procedures on the lender’s side.

If you’re wondering how much a compensation typically costs, then it will depend on the amount you were mis-sold by, such as the interest rate and commission fees. Just trust the process, as after the approval, the only step left is to wait for your compensation. An experienced claims company will also make you feel more confident as it ensures to secure the best possible outcome for your case. 

Conclusion

Filing claims for mis-sold car finance is one of the significant steps when you want to achieve justice and reclaim what was rightfully yours in the first place. The process is lengthy, time-consuming, and will entail patience, but you have to take this first step towards the justice you deserve. 

Understanding every stage in this process is crucial, to be able to set your expectations once this journey starts. Working with an expert like Reclaim247 will lessen the load of the complexities you encounter while processing your claim. 

If you need expert guidance or support, let Reclaim247 handle the complexities for you. Our team is here to simplify the process, negotiate on your behalf, and ensure your case gets the attention it deserves.