On 13 November 2024, the Financial Conduct Authority (FCA) announced: The FCA will consult on extending the time firms have to respond to consumer complaints about motor finance where a non-discretionary commission was involved, and for consumers to refer them to the Financial Ombudsman Service. This is a very rapid consultation for the FCA. It follows a recent Court of Appeal judgment in late … [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 discretionary commission claims – update May 2024
UPDATE - 13 November 2014 In late October, an Appeal Court judgment said commission should be refunded in a much broader range of cases, not just discretionary motor finance. The FCA is now proposing to extend the pause on discretionary commission complaints to cover fixed commissions as well. See Car commission refunds – can more people get refunds? where I cover this in detail UPDATE - 24 … [Read more...]
Car finance commission scandal – can you get a refund?
UPDATE - 13 November 2014 In late October, an Appeal Court judgment said commission should be refunded in a much broader range of cases, not just discretionary motor finance. The FCA is now proposing to extend the pause on discretionary commission complaints to cover fixed commissions as well. See Car commission refunds – can more people get refunds? where I cover this in detail UPDATE - 24 … [Read more...]
“Will settling defaults help me get car finance next year?”
A reader, Mr W, asked: I had credit cards and got myself in a mess when getting balance transfers but keeping the old cards. Then I lost my job two years ago, but I am now working again. I have defaults ranging from 2021 to last month ago. All my debts add up to about £6,500. One has offered me a discount if I clear the outstanding balance. Is a 20% discount on a £3,500 debt a good deal? I … [Read more...]
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...]
Will a parking ticket show on my credit record?
A reader asked: I've got a parking ticket in a car park which isn't right because you couldn't see the signs the way I went in. I've been sent a letter saying if I don't pay they will go to court and this will then show on my credit record. My partner says she got a speeding fine and that wasn't on her credit record. Are they lying to me? This article looks at what will happen if you don't pay 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...]