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Financial Ombudsman Service sees more motor finance complaints from third parties
The Financial Ombudsman Service has revealed that the majority of complaints on motor finance commission brought over the past year were brought by third parties on behalf of customers.
These would typically be claims management companies and law firms.
According to FOS figures complaints on motor finance in Q4 2021 were 1,592. This more than doubled to 4,414 in Q4 2022.
A spokesperson said: “We have received an increase in car finance commission complaints over the last year.
“These are primarily driven by complaints brought by third parties on behalf of consumers although we are clear that customers do not need representation to bring a complaint to our free, independent service.
“We are investigating the issues raised by these complaints carefully and each case is investigated on its own merits,” said a spokesperson.
Motor Trader understands that 90% complaints were brought against lenders and not dealers.
The FOC said the circumstances of the individual complaints can vary considerably. Businesses should
- Send their customer a prompt written acknowledgement that they’ve received their complaint.
- Fully consider the specific circumstances of their customer’s complaint
- Avoid generic or vague responses
- Clearly set out why they don’t believe their customer has been treated fairly/unfairly, in their final response letter
- Respond in a timely manner