Complaints against Car Financing Raise to a record level in UK Ombudsman

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Consumers have filed a record number of complaints about automotive loans with the UK financial ombudsman, raising the pressure on regulators before the decisive court case next month.

Financial Ombudsman Service said she received 18,658 new cases on the car three months before December Financial sector.

The rapid growth emphasizes how car loans are rapidly becoming the largest scandal with consumer financing in the UK as banks paid £ 50 billion for payment protection insurance.

Polemics added to A sense of upset Fos, after his executive director unexpectedly came out unexpectedly last month, a few days before the chairman of the historically restrained body, called on the “radical” shock of his rules and announced the plans to leave.

London’s city leaders have criticized the Ombudsman, an independent body that reports to the rules written by the financial behavior – for the fact that it is too quickly to compensate to customers, and the bosses say it refuses foreign investors from the sector.

The government replied by calling review Compensation systems.

The figures for the last quarter of 2024 show the cases of financing cars submitted to the ombudsman, which grew by a third from the previous quarter and more than three times, a year earlier to reach the highest record.

The data include both the purchase of rental and conditional contracts for financing cars.

Car financing cases continue to accumulate in Ombudsman, despite the fact that the FCA stops in the process of complaints in the field, while the regulators are waiting for the results of decisive court cases.

The Supreme Court next month should hear address Providers on car loans challenge the ruling last year from the appeal court, which shocked banks, sending consumers in their complaints about “secret” car loans.

The decision that banks was illegally paying a car dealer commission without the customer’s informed consent, suggested HSBC analysts to estimate that the total cost of the banks could reach £ 44 billion.

Then the Supreme Court’s decision in December, which stopped the call of Barclays against the FOS ruling that she unfairly added a 1300 pound commission to a car loan in 2018. Barclays is charming Against this decision.

As long as these cases are completely resolved, and the FCA pauses at the process of complaints, the ombudsman cannot make decisions on the claim of the car.

“We continue to see the large amounts of cases of financing commissions and call on businesses to consider whether complaints are being disseminated in the temporary rules for consideration of FCA complaints,” said James Dipl-Johnston, a temporary main ambudsman.

In order to avoid registration of cases, the ombudsman conducts preliminary investigations of cars financing, which, according to Dip Johnstone, “guarantee that we will be able to solve them as soon as possible if we have the clarity we need.”

Despite the higher cases of the car loan, the total number of complaints filed against the ombudsman dropped to 68 430 in the last quarter of 2024, which is 7 percent compared to the previous quarter.

Almost 80 percent of cars loan were submitted by professional representatives three months before December, such as the management companies that bring affairs on behalf of consumers in exchange for reducing any compensation.

Ambudsman who decided to start Companies for Management requirements To bring cases from the next month, they said that such organizations accounted for 47 percent of all their complaints between April to December last year, which compared to 21 percent a year earlier.

The FOS noted that 36 percent of cases that consumers were supported, and it supported only 26 percent of the complaints provided by professional representatives.