At times, managing car finance can be as complex as navigating a winding road. There may be instances when you encounter issues with your car finance arrangement, ranging from discrepancies in payment processing to concerns about how your agreement is being handled. While these situations are often resolvable through direct communication, there are circumstances where you may feel the need to lodge a formal complaint against your car finance lender.

Understanding the significance of following the proper channels and procedures for making a complaint cannot be overstated. It is not only about ensuring that your voice is heard but also about giving the lender the opportunity to rectify the situation in accordance with regulatory standards.

This guide aims to provide you with a clear path to follow should you find yourself needing to make a complaint, empowering you to navigate this process with confidence and effectiveness.

Step 1: Gather Proof and Information

When you’re preparing to make a complaint to your car finance lender, the first and perhaps most crucial step is to meticulously gather all pertinent proof and information. This encompasses a wide array of documents that will underpin your complaint and provide a solid foundation for any discussions or investigations that follow.

Documentation You’ll Need:

  • Car Finance Contract: This is the agreement you signed when you secured your vehicle financing. It outlines the terms and conditions of your loan or lease, and it’s paramount to have this document on hand.
  • Records of Communication: Any correspondence between you and your lender—be it emails, letters, phone call logs, or messages—should be collated. These records demonstrate the communication trail and highlight any assurances or statements made by the lender.
  • Evidence of Payments: Gather bank statements, receipts, or transaction histories that show you’ve made payments. If there are discrepancies in how payments have been processed or applied, these documents will be vital.

Creating a Timeline:

With all documents at your disposal, create a chronological timeline of events. This should begin with the inception of your finance agreement and include any significant milestones, such as missed payments, changes to terms, or prior complaints. Detail is key—specific dates, amounts, and descriptions of interactions will greatly aid your case.

Ready Your Summary:

Finally, prepare a concise yet comprehensive summary of your complaint. Clearly state the issue at hand, why you believe there has been a fault on the part of the lender, and what outcome you are seeking. This summary will serve as the cornerstone of your complaint and guide the conversations with your lender and any third-party entities that may get involved.

Armed with a well-prepared dossier of evidence and a clear account of the situation, you’ll be positioned to present your complaint with clarity and authority. Moving forward, these details will help to ensure that your concerns are taken seriously and addressed in a timely and appropriate manner.

Step 2: Understand the Lender’s Complaints Procedure

When faced with a concern that necessitates a formal complaint, it’s imperative to first acquaint yourself with the finance company’s official complaints process. Financial institutions are required to have a clear, accessible procedure for customers to lodge their grievances. This usually includes a step-by-step guide outlining how to raise the issue, where to send your complaint, and what information should be included.

Initial Research:

  • Locate the Process: Typically found on the company’s website or provided within your finance agreement documentation.
  • Understand the Steps: Take note of any specific forms you might need to fill out or particular departments you should contact.

The Importance of Direct Resolution:

Attempting to resolve the problem directly with the lender serves several important purposes:

  • Efficiency: It gives the lender the opportunity to rectify the issue promptly, without the need for external intervention.
  • Building a Case: If the issue is not resolved and you need to escalate your complaint (to the Financial Ombudsman Service, for example), having proof that you sought a resolution with the lender first is necessary.
  • Regulatory Compliance: Lenders have a regulatory requirement to deal with complaints fairly and promptly; not following their procedure could hinder your complaint’s progress.

By thoroughly understanding and following your lender’s complaints process, you ensure that you are giving them the appropriate chance to address your concerns. This step is not only a matter of protocol but also a strategic approach to securing a fair and just resolution.

Please be aware that if you are not satisfied with the response or if your complaint is not addressed within the stipulated time frame, there are additional steps you can take, which will be covered in subsequent sections of this guide. Remember, the process can be complex, and seeking professional advice where necessary is always a prudent course of action.

Step 3: Make a Complaint with the Finance Company

After gathering the relevant information and understanding the lender’s complaints process, it’s time to formally present your concerns. Crafting a well-structured and clear formal complaint letter or email is vital. This correspondence is your opportunity to articulate the particulars of the issue, present your evidence, and express your desired outcome.

Writing Your Complaint Letter or Email:

When composing your letter or email, keep the tone professional and the content clear. Focus on presenting the facts without letting emotions cloud the details.

Key Elements to Include:

  • Your Contact Information: Provide your full name, address, any relevant account or agreement numbers, and your preferred method of contact.
  • Date: Ensure that your letter is dated, as this will be important in determining response times.
  • Clarity on the Nature of the Complaint: Define the problem succinctly and why you believe there has been a fault on the part of the lender.
  • Chronology of Events: Include a timeline of key events related to the complaint.
  • Evidence: Mention that you have attached evidence supporting your complaint, and list the documents you have included.
  • Expected Resolution: Clearly state what action or outcome you are seeking from the finance company to consider the complaint resolved.
  • Polite Closure: Finish your letter with a courteous sign-off, expressing your expectation for a timely response.

Suggested Template for a Complaint Letter/Email:

[Your Full Name] [Your Address] [Your Contact Information] [Date]

[Finance Company’s Name] [Finance Company’s Address] [Department or Contact Person if known]

Subject: Formal Complaint – [Your Agreement or Account Number]

Dear [Finance Company’s Contact Person/Department],

I am writing to lodge a formal complaint regarding my car finance agreement referenced above. I have encountered a problem that I have been unable to resolve through regular customer service channels.

[Clearly state the nature of the complaint and the issue as you see it. Keep it factual and concise.]

The following is a timeline of events that have led to my complaint: [List key dates and events in chronological order.]

To support my complaint, I have attached the following documents: [List any contracts, communications, statements, or other evidence attached.]

I am seeking [describe the resolution you expect – e.g., refund, amendment to contract terms, apology, etc.], which I believe will provide a fair resolution to the issue at hand.

I trust that you will address this matter with urgency and look forward to your prompt response. Under the Financial Conduct Authority regulations, I expect to receive an acknowledgment of this complaint within the stipulated timeframe and a full reply within eight weeks.

Thank you for your attention to this matter.

Yours sincerely,

[Your Name]


Ensure you keep a copy of the letter or email for your records. Should the issue progress further, retaining evidence of all communications will be crucial. Remember, this step is about asserting your rights as a consumer in a clear and direct manner. It’s also worth reiterating, please seek professional advice if you are unsure of how to proceed or if the matter is particularly complex.

[Disclaimer: This content is for informational purposes only and does not constitute legal or financial advice.]

Step 4: Await the Lender’s Response

After submitting your formal complaint to the finance company, the process of waiting for a response begins. This period is governed by regulatory expectations that ensure your complaint is addressed within a reasonable timeframe.

What to Expect:

  • Acknowledgment of Receipt: The lender should send you an acknowledgment that they have received your complaint. Regulations typically require this acknowledgment within a few business days.
  • Investigation Period: The lender is given up to eight weeks to investigate and resolve your complaint. During this time, they may contact you to gather more information or discuss the issue further.

During the Waiting Period:

  • Maintain Records: Keep all incoming correspondence from the lender in a single file, whether they are letters, emails, or notes from phone conversations. This will be valuable if you need to refer to past communications or escalate the complaint.
  • Patient Follow-up: While waiting can be challenging, it’s essential to allow the lender time to review your complaint thoroughly. However, you should remain proactive. If you haven’t heard from the lender within a few weeks, it’s reasonable to enquire about the progress.

What to Do After You Receive a Response:

  • Written Confirmation: If the complaint is resolved to your satisfaction, ask for a formal resolution in writing for your records.
  • Assessing the Outcome: If you are not happy with the resolution or if you do not receive a final response within eight weeks, you can take the next step and escalate the complaint to an external body such as the Financial Ombudsman Service (FOS).

Remember, this process is designed to ensure that your complaint is heard and dealt with fairly by the finance company. It’s important to be clear and persistent, but also to give due process its due course.

Finally, while this content aims to provide you with a structured approach to awaiting a lender’s response, it should not be substituted for legal or financial advice. For personalised assistance, consider seeking the services of a professional advisor.

Step 5: Escalating the Complaint

If you find that your complaint has not been satisfactorily resolved by the finance company, or if they’ve failed to respond within the regulatory eight-week timeframe, you have the right to escalate your concern to the Financial Ombudsman Service (FOS). The FOS is an independent body established to arbitrate on unresolved complaints between regulated firms and consumers.

Process for Escalating to the FOS:

  1. Timeframe: You need to refer your complaint to the FOS within six months from the date of the lender’s final response. If you have not received a response, the six-month period starts from the end of the eight-week period allotted to the lender.

  2. Gathering Information:

    • Documentation: Compile all communication with the lender, including emails, letters, and any documents you have sent or received as part of your complaint.
    • Evidence: Gather any additional supporting evidence that helps substantiate your case.
  3. Submitting Your Complaint:

    • FOS Complaint Form: Fill out the FOS’s complaint form, available on their website, as accurately and completely as possible.
    • Detailed Explanation: Clearly explain the nature of your complaint, the steps you have already taken, and why you are dissatisfied with the lender’s response (or non-response).
  4. Desired Resolution:

    • Outcome: State what outcome you are looking for in resolving your complaint. This may include a refund, compensation, or another specific remedy.
  5. FOS Review:

    • Assessment of Your Case: The FOS will assess your case impartially, considering both sides of the story.
    • Investigation: They may request further information from both you and the lender during their investigation.
    • Decision: After their review, the FOS will make a decision which, if you accept, becomes binding on the lender.

What to Consider:

  • No Cost: The service provided by the FOS is free for consumers.
  • Communication: Stay in touch with the FOS throughout their review process and provide any additional information they may need promptly.
  • Impartial Advice: The FOS acts impartially, so while they consider your desired outcome, their decision is based on what they consider fair and reasonable in light of the facts.

By following this process, you ensure that your complaint is given due consideration by an independent party, which can offer peace of mind and a resolution when direct negotiation with the finance company does not yield satisfactory results.

Please note that this content is for informational purposes only, and does not constitute legal or financial advice. Always refer to the most current guidelines provided by the FOS and consider seeking professional advice for your specific situation.


In conclusion, navigating the path of a car finance claim involves a series of considered steps, each designed to address and potentially resolve any issues you may encounter with your car finance agreement. Here’s a quick recap of those steps:

  1. Documentation: Ensure you have all relevant proof and documentation concerning your finance agreement and the issues you’ve experienced.
  2. Initial Contact: Reach out to your finance provider to discuss the problem and follow their internal complaints procedure.
  3. Formal Complaint: If necessary, write and send a formal complaint letter, clearly outlining the issue and your desired outcome.
  4. Lender’s Response: Allow up to eight weeks to receive a final response from your lender, maintaining records of all communications during this period.
  5. Escalation: If the resolution is not satisfactory, or if you haven’t received a response, you have the option to escalate the complaint to the Financial Ombudsman Service

Throughout this journey, it’s imperative to maintain thorough documentation of all your communications and actions. This will support you if the process becomes protracted or particularly complex. Patience and assertiveness are key; it’s about finding a balance between giving the process the necessary time to unfold and ensuring that your complaint is taken seriously and addressed in a timely manner.


The information provided in this guide is solely for educational purposes and does not constitute legal or financial advice. Regulations, procedures, and financial products are complex and can change over time. For advice tailored to your specific situation, always consult a qualified financial advisor or legal professional. They will be able to guide you through the process, ensuring that your rights are protected and that you’re taking the most appropriate course of action for your circumstances.

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