Reclaim car finance - early repayment

ACondie_6

I took out a hire purchase repayment with Black Horse in 2020 on my Ford Fiesta. However, I paid this off quickly after just 3 months which would mean the outstanding amount of interest was significantly less than if I paid it off over the full 48 months. Does this affect if I am eligible to make a complaint and the amount of compensation I might be due?

Hoenir

What grounds do you have that lead you to believe that the redemption figure was incorrectly calculated?  Consumer lending contracts are regulated by the FCA. The small print of yours will explain how the redemption figure is arrived at. 

Nasqueron

ACondie_6 said:

I took out a hire purchase repayment with Black Horse in 2020 on my Ford Fiesta. However, I paid this off quickly after just 3 months which would mean the outstanding amount of interest was significantly less than if I paid it off over the full 48 months. Does this affect if I am eligible to make a complaint and the amount of compensation I might be due?

The DCA issue is about inflating interest rates for more commission for the sales person. If you were affected and the FCA rules against the sellers, you would potentially be entitled to compensation but yes it would obviously be reduced if you paid the finance back early as you wouldn't have had the full impact of the higher rate - you can't claim a refund for interest charges you didn't pay.

DullGreyGuy

Hoenir said:

What grounds do you have that lead you to believe that the redemption figure was incorrectly calculated?  Consumer lending contracts are regulated by the FCA. The small print of yours will explain how the redemption figure is arrived at. 

What leads you to think the redemption figure is wrong? They've posted in the DCA section so presumably are claiming the interest rate was inflated for discretionary commissions. 

ACondie_6 said:
Does this affect if I am eligible to make a complaint and the amount of compensation I might be due?

Doesn't effect eligibility, subject to the FCA's decision, but its likely "compensation" will be the difference in interest paid between what it would have been without DCA -v- what you paid in interest. Clearly if you paid little interest then you'll get very little compensation.