The real risk of using car finance claims firms

Claims firms have found the new payment protection insurance — car finance mis-selling. Claims management companies do the legwork for customers who are owed compensation in exchange for a cut of their payout. And they have been flooding social media with adverts offering to lodge complaints on behalf of people who fear they were mis-sold car finance deals — where brokers were incentivised to give you a worse deal — but they could take up to 30 per cent of any compensation you win.

“Finance companies are now paying out millions of pounds on mis-sold car finance claims,” a video on the social media app TikTok that has been viewed more than 3,400 times said. “You can find out for nothing the potential value of