Scam car finance claims services on social media
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Scammers are advertising fake claims services for mis-sold car finance on social media, Which? warns.
The Financial Conduct Authority (FCA) announced at the beginning of this year that it is investigating car finance mis-selling.
The FCA stated that some customers could have been overcharged on car finance loans sold before January 2021.
You may be affected if you bought a car under a finance scheme before 28 January 2021 and there was a discretionary commission arrangement (DCA) between your lender and broker.
Scammers have unsurprisingly seized the opportunity to con victims using fake claims services.
Read on to see what scam adverts we found lurking on Facebook and how you can make a complaint about a mis-sold car finance loan for free.
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Scam car finance claims ads
Which? found four dodgy adverts posted on both Facebook and Instagram claiming to help customers who’ve been mis-sold car finance to find out if they’re owed compensation.
The ads tell social media users: ‘Let’s get your money back! If you bought a car on PCP between 2010 and 2021 then you could be due a refund. Leave your details to find out if you qualify.’
While this may seem innocent enough, the scammers’ real aim is to steal your personal information to conduct more elaborate scams on you in the future.
After leaving your email address and phone number, you’re told that someone will be in touch over the next 24 hours to discuss your claim.
The account behind these adverts looked suspicious. We reverse image searched the account’s profile picture and found that it had been used in hundreds of other places on the internet – all under different names.
To report scam adverts or posts on social media, select the three dots in the top right-hand corner and then ‘report’.
If you become the victim of a scam, call your bank immediately using the number on the back of your bank card and report it to Action Fraud, or call the police on 101 if you’re in Scotland.
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Claims management companies
Since the FCA announcement, social media posts and adverts in garages and services stations have appeared from companies and individuals who claim to be able to help you with your claims for compensation.
Claims management companies work by deducting a fee from any compensation you’re awarded, so it’s best to complain to the car finance firm yourself if you want to receive the full compensation amount.
You don’t need to use a claims management company to find out if you’re eligible to claim and make a complaint.
How to complain about a mis-sold car finance loan
To complain, contact the firm that sold your car finance product and wait for its final response.
You can do this by using our free template letter to find out if you had a DCA on your agreement and make a complaint if you did.
Due to the current FCA pause on complaints, firms don’t have to respond to your complaint until after 4 December 2024.
If you’re not happy with the final response you get, you can take a complaint to the Financial Ombudsman (FOS).
Ordinarily, you’d have six months to take a complaint to the FOS. But due to the ongoing investigation, you now have up to 15 months to take your complaint to the FOS if you were sent a final response between 12 July 2023 and 20 November 2024. This period may be extended by the FCA.
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