Warning Issued Against Car Finance Compensation Scams in the UK

London, UK – Motorists in the United Kingdom are urged to stay vigilant against scams concerning mis-sold car finance loans. Those potentially owed up to £950 are receiving unsolicited calls and texts from fraudsters pretending to be lenders.

This warning comes from the Financial Conduct Authority (FCA), which oversees compensation processes for mis-sold car finance. Recent reports indicate that some drivers have been contacted out of the blue, informed they are eligible for compensation, and asked to provide personal details to facilitate claims.

Many victims have already reached out to their lenders, believing they might be owed money after being mis-sold loans. However, the FCA has stressed that legitimate lenders will not be contacting customers to arrange any payments at this stage.

Scammers have adopted various tactics, including calls from mobile numbers and texts that include specific car models and registration details. One alarming message even claimed that a driver could receive up to £16,000.

The FCA advises anyone receiving such calls or messages to hang up immediately and refrain from sharing any personal information. It is also important to report any suspicious communications to relevant authorities once safe.

For those who genuinely believe they may be owed money, the FCA recommends waiting for official guidance on how lenders will manage compensation claims. The FCA is set to provide instructions to lenders next year, detailing how to process claims appropriately.

In the meantime, stay cautious and do not provide personal details through online links or unsolicited messages.