Should You Use a Claims Management Company for Your Car Finance Claim?

Car finance claims in the UK have gained a lot of traction recently, thanks in part to the Financial Conduct Authority’s probe into the way interest rates and commissions are arranged. As people review their agreements and spot potential problems, the question remains: should you tackle the complaint yourself, or get some professional help from a claims management company?

The choice is entirely yours, what you decide to do will depend on your unique situation and how comfortable you are with the idea of dealing with the process yourself. Making an informed decision is a lot easier if you understand the ins and outs of each option.

What Do Claims Management Companies Actually Do?

A claims management company (CMC) like Mis-Sold Expert will handle the entire complaints process for you. When it comes to car finance cases, that could mean potentially going through your agreement to see if there were any issues with how it was set up in the first place.

They'll take a look at how your interest rate was decided, whether any commission arrangements were involved, and whether the lender explained things clearly when you signed up. If they spot any potential problems, they'll draw up a complaint to the lender and send it off, setting out what the issues are.

Once that part of the process has been carried out, they'll usually handle all the communication with the lender, ask for any extra information they need, and keep track of how your case is progressing. For some people, this is their preferred option, especially if they're not sure how the process works.

You Can Handle It Yourself, Of Course

It's worth knowing that you don't have to claim through a claims management company. You can get in touch with your lender directly and raise your concerns without paying a fee.

It can mean waiting for your lender to contact you or complaining straight to them and waiting for them to respond. They'll then investigate and get back to you. If you're not happy with the response, you can take it to the Financial Ombudsman Service, which is a free, independent body that looks at disputes between consumers and financial firms.

For many people, this won't be too difficult to sort out without any extra help.

Why Some People Prefer To Get Some Help

Although you can definitely handle the complaint yourself, many people prefer to get the help of a claims management company.

One main reason is the time involved. Going through a complaint can be a lengthy and time-consuming business, could involve tracking down documents and dealing with the lender's queries. Having someone to handle all that for you can save you a lot of time and hassle.

Another reason is familiarity with the process. Car finance complaints, especially those to do with commission arrangements, can sometimes get a bit complicated. A company that's already dealt with a lot of these cases might have a better understanding of what to expect and how the lender is likely to respond.

When Handling It Yourself Is The Way To Go

There are times when it makes more sense to deal with the complaint on your own.

If you're comfortable going over your agreement, setting out your concerns, and following the process through to the end, you might not need any extra help. And if you're successful with your claim, you won't have to pay a fee.

It's also worth remembering that the outcome of a complaint isn't affected by whether you use a claims management company. Decisions are made based on the facts of your case and the FCA's rules.

Understanding The Costs Involved

Claims management companies usually charge a fee if you succeed with your claim. This is often a percentage of any compensation you get.

Before you agree to use a company, you should get clear information about how their fees work, what the percentage is, whether VAT is included, and when you'll need to pay the fee. The FCA requires them to do this so you can make an informed decision.

Making A Claim With Mis-Sold Expert

If you want some help with your claim, Mis-Sold Expert can guide you through the process and explain your options.

This involves looking at your agreement to spot any potential issues, and taking care of communication with the lender on your behalf if you choose to proceed.

You remain in control all the way through and can decide whether to keep going with their help or deal with the lender directly yourself. We aim to give you clear, practical advice so you can make a decision that's right for you.

Working Out What's Right For You

Deciding whether to get a claims management company on board depends on your individual situation.

You might want to think about how confident you feel dealing with the process, how much time you can spare, and whether your agreement seems straightforward or pretty complicated.

Some people are happy to handle everything on their own, while others prefer to get some extra help. Either way is fine, and the right choice for you will simply be the one that works best.

What You Can Do Next If You're Thinking Of Making A Car Finance Claim

A good place to start is reviewing your agreement and taking a close look at the key pieces of information, such as how the finance was set up and the total cost of the agreement.

From there, you can think about whether to fire off a formal complaint to your lender or see if a regulated claims management company can help you out.

Work through this process, and you'll probably get a better handle on where you stand and what your options look like without feeling like you've got to back a particular horse.

Mis-sold Expert is here to give you a heads up on what you can do if you reckon your car finance deal may not have been entirely fair. We give you clear, straightforward info so you can figure out what to do next.

You can claim without using a claims management company; you can go to your finance provider and then to FOS, for free. Additionally, the FCA is introducing a free consumer redress scheme.