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Faulty Car Bought on Finance

Faulty Car Bought on Finance

Missold a car or got a complaint about

a faulty car bought on finance, HP or PCP

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Faulty Car Bought on Finance

If you’ve been missold a car or got a complaint about a faulty car bought on finance, HP or PCP, you’d probably take your complaint back to the car dealer or dealership you bought it from to get it repaired, replaced or your money back under the Consumer Rights Act.

If the seller is a main franchise dealership and the issue remains unresolved or the car displays a further fault you might escalate your complaint to the relevant manufacturer or refer it to the motor ombudsman to reject a car on finance and get a refund.

Although logical, you’re finding yourself being pushed from pillar to post and getting nowhere because, actually, your agreement is with the finance company. They own the car and it is them to whom your complaint should be directed.

  1. Report the issue to the supplying dealer or reject the car in writing; and
  2. Report it to the finance company in writing: then
  3. Submit the complaint to Financial Ombudsman

Unlike car dealers, finance companies have a legal obligation to investigate your complaint within a fixed period of time and give you a written notice of the outcome and the reasons for it.

Additionally, if the finance company decision doesn’t go your way, you have the right to submit your complaint to the Financial Ombudsman Service within 6 months, providing you have not commenced legal proceedings. They are tasked with adjudicating consumer complaints involving consumer finance and what’s more, the finance companies are bound by the decision; they are capable of being enforced in court.

90% of cars are now sold on finance and there is a 64% increase in complaints to the Financial Ombudsman year on year, however, the rate of success for consumer complaints lodged with them has dropped to 33%.

While there’s no suggestion of bias, there does seem to be a lack of technical expertise in car cases, which results in a misapplication of the relevant law and an unfounded conclusion; leaving customers having to contemplate further legal action.

At its centre, the problem seems to be an expectation by customers that they can raise a complaint with the Ombudsman without any real substantive evidence or case preparation and the Ombudsman will ‘do it all for them’. In reality, to maximise the chances of success, complainants have to express and prepare their cases in the same way they should if the case were going to court. 

To assist customers in trying to increase their chances of succeeding in their claim and rejecting a car, Stormcatcher offer a fixed fee package costing either £595 + VAT (£714) or £995 + VAT (£1194) depending on the size of the claim. The service includes all correspondence with the garage and finance company; witness statements, case preparation and correspondence with the Financial Ombudsman, and legal advice through to the final decision.

For a free 15 minute consultation with the car lawyer please call 0333 700 7676.

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