In light of recent developments, Santander UK has earmarked £295 million to cover potential compensation claims for mis-sold car finance agreements. This action underscores the increasing scrutiny over past finance deals, particularly concerning undisclosed or excessive commissions that may have adversely impacted customers. If you’ve previously entered into a car finance agreement, it’s crucial to assess whether you might be eligible for compensation.
What's Included?
Background: Why Has Santander Set Aside £295 Million?
The Financial Conduct Authority (FCA) has been investigating the car finance industry due to concerns that many customers were misled or not provided fair terms in their agreements. A significant issue involves discretionary commission arrangements (DCAs), where brokers or dealerships had the authority to adjust interest rates, often leading to higher costs for consumers without transparent disclosure. These arrangements were prohibited by the FCA in January 2021.
Santander UK’s decision to allocate £295 million reflects the potential scale of affected customers and the seriousness of the issue.
Identifying Mis-Sold Car Finance: Are You Eligible?
You might have a claim if:
- You were not informed that a broker or dealership was earning a commission on your finance deal.
- You were charged a higher interest rate without clear justification.
- You were not provided full disclosure of all terms and conditions at the time of signing.
- You believe the finance agreement was not in your best financial interest.
Retrieving Your Old Car Finance Agreement
If you suspect you were mis-sold car finance, the first step is to locate your old finance agreement. Many individuals worry they no longer have these documents, but several methods can assist in retrieving them.
We’ve created a helpful guide to walk you through the process: How to Find Historical Car Finance Agreements for a Mis-Sold Car Finance Claim.
This guide will show you how to:
- Search your emails and online banking for lender details.
- Contact your lender directly for copies of agreements.
- Use a Subject Access Request (SAR) to retrieve your finance records.
- Check your credit report to identify past finance providers.
Check your Credit File Today
Don’t delay you could be owed £’000’s
Next Steps: How to Proceed if You Suspect Mis-Selling
If you believe you were mis-sold car finance, consider the following actions:
- Gather Evidence: Locate your agreement and any supporting documents.
- Assess Your Case: Compare your deal against FCA guidelines on fair lending.
- Submit a Complaint: Contact your lender with a formal complaint regarding mis-selling.
- Escalate if Necessary: If your lender rejects your claim, you can escalate to the Financial Ombudsman Service for further review.
Act Now – You May Be Entitled to Compensation
With Santander setting aside a substantial sum, it’s evident that car finance mis-selling has been a widespread issue. If you had car finance in the past, now is the time to determine if you were affected and take appropriate action.
💡 Want to learn more? Read our guide on finding your old finance agreements and start your claim today: Click Here.
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Have you had a car, motorbike, van, motorhome or caravan on finance before 2021?
Don’t delay you could be owed £’000’s
