MOTORISTS are complaining in record numbers about motor finance deals, based on latest figures.
The Financial Ombudsman revealed gripes associated with vehicle finance rose by 64 per cent in 2023 with concerns over both hire purchase agreements and private contract purchase (PCP) deals.
The Ombudsman's annual review found drivers appeared to be trapped by huge balloon payments to possess the car after their contract.
Excess mileage charges were also reason behind complaint, with one consumer hit with a lb600 bill for exceeding her 7,000-a-year limit.
The Ombudsman found in her favour and waived the charge.
The huge surge in complaints mirrors the vast amounts of finance deals being taken out.
Last year, nine out of 10 new cars were sold through finance – whether that's hire purchase, PCP or bank loan.
The Ombudsman said: “We saw more complaints about hire purchase agreements as a whole.
“And as sales of new cars grew even larger, we heard from people who'd taken out PCP agreements.”
It's the latest warning over the lb40billion motor finance industry following the Financial Conduct Authority said it was launching a study into irresponsible lending.
The watchdog said hello was worried about deficiencies in transparency in the market and individuals being pushed into deals they may not be able to afford.
Motor insurance cases also rocketed – up 38 percent – comprising nearly a third of all insurance complaints.
Logbook loans, where motorists use their logbook as collateral for a loan, was another sector that saw an outburst in complaints – up 75 percent.
Although the amount of people complaining about their lender rose from just 59 to 103 between 2023 and 2023.