Will ANYONE Finance A Car Again? Backlash Over Car Finance Claim Scandal Leads To Decline In Trust From Drivers

Trust shown by UK drivers towards their finance providers could be at an all time low, following on from recent developments in the ongoing car finance scandal.

Leading lenders such as Lloyds, Barclays and Santander have been accused of mis-selling finance agreements like Personal Contact Purchase (PCP) and Hire Purchase (HP) deals to their customers, which has cost individuals drivers hundreds, even thousands of pounds.

And the mis-selling scandal has now caused more and more drivers to be skeptical over the deals their lenders have been offering to them.

A recent study by Consumer Voice found that only 65% of drivers surveyed who took out car finance BEFORE the hidden commission ban trusted their lender to act in their best interest.

“We surveyed 2,042 people who took out at least one car finance loan before 28 January 2021. Most were unaware that their dealer could be receiving commission – only 21% said they were aware of this.”

The fallout from the car finance scandal could deal a monumental blow to the auto industry: lenders have already provisionally put aside billions, with the Chancellor Rachel Reeves having previously worried the scandal could force lenders to scale down their business in the UK.

On the matter, the BBC wrote that the Treasury “expressed concerns at the time that the size of the compensation bill for lenders could undermine the competitiveness of UK banks.”

TELL US YOUR THOUGHTS: HAD A CAR ON FINANCE? HAS IT EMERGED YOUR LENDER MIS-SOLD YOU? WORRIED ABOUT YOUR FUTURE FINANCE DEALS? LET US KNOW TODAY.