Car finance complaints rise to record level at UK ombudsman

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Consumers submitted a record number of complaints about car loans with the Secretary of Financial Grievances in the United Kingdom, which raised pressure on the organizers before the decisive court case next month.

The financial grievance secretary service said on Tuesday that it had received 18,658 new cases about auto loans in the three months to December, bypassing credit cards as a product that is subject to the most solutions in the British. Financial sector.

Rapid growth highlights how auto loans have become more quickly, consumer financing scandal in the UK because banks paid 50 billion pounds from insurance to protect payment.

Added controversy to a Feeling disorders In FOS, after unexpectedly resigned the CEO last month, the head of the historically low key Authority called for eliminating its “radical” bases and declared its plans to leave.

Executive officials in the city of London criticized the Secretary of Grievances – an independent body subject to the rules written by the Financial Conduct Authority – as they are very fast in granting compensation to customers, which presidents say foreign investors are from this sector.

The government responded by calling to review From the recovery system.

The numbers of the last quarter of 2024 are exposed to the financing of cars raised in the Grievance Secretary, which increased by a third of the previous quarter and more than three times by a year to reach its highest level.

The data includes both rental purchase agreements and conditional car financing.

Issues related to car financing continued in accumulation in the staff of grievances, despite the suspension of complaints in this field, while organizers are waiting for the results of the decisive court cases.

The Supreme Court next month is scheduled to hear call According to auto loans, the ruling challenges last year from the Court of Appeal, which shocked banks by bending with consumers in their complaints about “secret” commissions on auto loans.

The ruling was that it was illegal for banks to pay a commission to a car dealer without the approval of the enlightened customer, which prompted HSBC analysts to estimate that the total cost of compensation for banks could reach 44 billion pounds.

This was followed by the Supreme Court’s decision in December and rejected the challenge that Barcellis issued against FOS decision that he unrelectedly added a committee of 1300 pounds to the cost of the car loan in 2018. Barclays is Hu Hu Attractive Against this decision.

Until these cases are fully resolved and FCA finishes stopping the complaints process, the grievance secretary is unable to issue decisions regarding the car loan claims.

“We continue to see large quantities of engine financing committee, and we encourage companies to consider whether complaints are covered with the rules of temporary complaints of FCA.”

To avoid a record in cases, the grievance secretary conducts preliminary investigations in car financing cases, which Dipe-Johnstone said, “We will ensure that we can solve it as soon as possible when we have the clarity we need,” said Dipple-Johnstone said.

Despite the increase in car loan cases, the total number of complaints filed in the Secretary of Grievances decreased to 68,430 in the last quarter of 2024, a decrease of 7 percent from the previous quarter.

Nearly 80 percent of car loan cases were provided in the three months to December by professional representatives, such as claim management companies, which bring cases on behalf of consumers in exchange for a reduction in any compensation granted.

Grievance Secretary, who decided to start Claim management companies These organizations said that these organizations represented 47 percent of all their complaints between April and December last year, an increase of 21 percent in the same period in the previous year.

FOS said 36 percent of the cases delivered by consumers had been supported directly, while only 26 percent of complaints filed by professional actors.