Who is the car finance ombudsman?

Is there any better feeling than hitting the road in your new wheels? The sunshine streaming through your windscreen, tunes turned up to 11, and a clear run ahead of you. Not even getting stopped by every red light on your route could ruin your day.
 
While buying a car on finance will usually go without a hitch (and you can enjoy that new car feeling), sometimes issues can arise, and you’ll need to make a complaint.
 
Whether you don’t feel you’ve been treated fairly, are facing extra charges you didn’t expect, or weren’t told that your car dealer or finance broker would earn a commission from your agreement, there are many reasons why you might have legitimate grounds for complaint.
 
If you don’t get the answer you need, that’s where the car finance ombudsman comes in.
 
Read on to learn more about how the ombudsman operates:

What is an ombudsman and how do they help?

An ombudsman is an independent organisation that investigates and resolves complaints from customers to businesses operating in a specific industry.
 
It might help to think of them a bit like a judge or referee – impartiality is essential (they’re the Switzerland of the corporate world.)
 
After investigating, if the ombudsman does find that a business acted improperly, they have the power to request compensation for the wronged party – and, as a customer, it won’t cost you a penny!
 
And that’s not all; the ombudsman is uniquely placed to spot any systemic issues affecting the sector they work in and provide feedback to businesses to help them improve the way they operate and handle complaints.

What is the role of the Financial Ombudsman Service in car finance?

If you have a complaint related to your car finance agreement, the Financial Ombudsman Service could help.
 
In fact, they can weigh in on disputes between customers and any business that provides financial services and is regulated by the Financial Conduct Authority (FCA).
If you think your car finance has been mis-sold by a car dealer or finance broker, you have the right to escalate your complaint. The Financial Ombudsman Service can then investigate, collect all the evidence, and make a judgement.
 
It’s their job to resolve your dispute fairly and put things right.

Who is The Motor Ombudsman and what is its role in car finance disputes?

If it’s your pride and joy rather than your car finance agreement that is causing you a headache, The Motor Ombudsman will be your go-to service.
 
As a certified Alternative Dispute Resolution (ADR) provider, The Motor Ombudsman can investigate and pass judgement on any complaints made about businesses accredited by its codes of practice. This includes new car manufacturers, warranty providers, and garages who carry out servicing and repairs.
 
While they can help with some types of agreement, like vehicle warranties, they can’t consider complaints related to a finance company or questioning the details of a finance agreement (that’s where the Financial Ombudsman Service can step in).

When should I contact the ombudsman?

You deserve to have a car finance experience that feels good. Anything that makes you question whether you were treated fairly, leaves your finances in a bad shape, or feels like an unexpected – and unwelcome – surprise, could be worthy of a complaint.
 
The first step with any complaint should be to contact your car dealer, broker, or finance provider directly, but if they don’t respond or you’re not happy with the answer you receive, you can contact the ombudsman.

Legitimate complaints can include:

• Not being told that the car dealer or finance broker would receive a commission from the finance provider for arranging your loan.
• Not receiving an impartial recommendation due to the commission on offer.
• Not being offered the best interest rate available.
• Your finance being mis-sold or misdescribed.
• You were given an agreement with unaffordable terms or weren’t treated fairly when you were in financial difficulties.
• Facing unexpected or unfairly high charges at the end of your agreement.

Any of these scenarios sound familiar? You should probably consider contacting the ombudsman.

How does the complaints process work

So, you have an eligible complaint – what happens next?
 
Well, first things first, you need to give your finance provider or broker a chance to put things right. Make a formal complaint to the company involved and wait for their response.
 
Each company will have its own complaints process, but the final step will always be issuing a final response. They must share this with you within eight weeks of receiving your complaint.
 
Not happy with their response (or lack of one)? That’s where the ombudsman could help.
 
Submit your complaint for free through the ombudsman website. The submission process will ask you a few questions to help clarify exactly what went wrong and why.
 
Next, you’ll be allocated a case handler who will start investigating (your very own Detective Poirot!)
 
You might need to supply some evidence like a copy of your credit agreement, any pre-contract information, and your initial disclosure document (IDD). On the other side, the finance provider will also be providing things like recordings of your interactions with them, and any case notes they have on file.
 
Once they’ve gathered all the facts, the ombudsman will come to a decision.
 
This judgement will usually be based on a few different factors including:

• The relevant laws and regulations
• Rules and guidance provided by the FCA
• Industry codes of conduct
• What’s considered good industry practice

If they rule in your favour, you should be returned to your original position (and potentially compensated) as if the problem had never happened – time travel, no Tardis needed.