There are now two different types of car finance commission complaints, "discretionary commission" and "undisclosed commission". In January 2024, the FCA allowed car finance firms to "pause" their handling of discretionary commission complaints. Then in October, a major appeal court case covered a completely different reason for asking for a refund of car commission - it was not fully explained … [Read more...]
Articles about cars and debt
Cars are often a major part of your budget. For many families, car finance payments are their second largest monthly outgoing after rent/mortgage.
Car finance – what happens in an IVA?
Cars on finance can be a big problem with an Individual Voluntary Arrangement (IVA). Sometimes they can cause difficulty getting the IVA approved. Sometimes you face a major problem when the car finance end. With more than a million cars a year in the UK being bought on finance, this is an increasingly common situation. And one that is being made worse in 2023 by the cost of getting a … [Read more...]
Car finance affordability – what you get if you win a complaint
Refunds for unaffordable credit are usually simple - you get a refund of interest paid and, if you still have the account, only have to repay what you borrowed with no added interest. And your credit record is cleaned. That is the basis for car finance affordability complaints too. But here there is an extra factor - what happens to the car? When you make a car finance payment, some of it is … [Read more...]
Were you sold a car on unaffordable finance?
Was your car finance unaffordable? The FCA, who regulates car finance lenders. and the Financial Ombudsman (FOS) say: a loan is only affordable if you can make the repayments on time, without hardship and still meeting your other commitments. That means you need to be able to pay all your other debts, your normal household bills and expenses as well as the new car loan payments. You may … [Read more...]
Voluntary Termination (VT) – how to end your car finance early
When you are buying a car on HP or PCP finance, you have the right to hand the car back and end the agreement. This is known as Voluntary Termination (VT). Depending on how much you have paid, you may not need to pay any more after VTing the car. In 2024, many people are struggling to pay their car finance, with mortgage/rent, childcare and car insurance rising so fast. See Can you afford … [Read more...]
Can you afford your car finance payments?
Can you afford your monthly car payments? You may have lost your job or be worried that may happen. You or your partner may have had their hours cut. Or your business may be making less money. Or your other bills may have gone up a lot. Mortgage, rent, petrol, energy bills, council tax, food... What sort of car finance do you have? This article looks at your options if you have a Hire … [Read more...]
Can I get another car after VT or is part exchange better?
A reader asked: I want to terminate my PCP car finance. The car's fine, good condition, but we now need a bigger car. According to my contract I can hand it back. But I am going to need to get another car, so I am worried this will harm my good credit record. Would part exchange be better? Your right to end a PCP contract early Personal Contract Purchase (PCP) is the most common way to buy … [Read more...]