Ombudsman figures show that hire car purchase deals are amongst the most complained about policies in Britain.
Heightened grievances with regards to the Financial Ombudsman comes following the amount of cash being borrowed by people to buy cars rising significantly in recent years to roughly £30 billion.
Speculations have raised concerns with regards to the amount of financial checks that aren’t being made on borrows, which could possibly lead to a huge mis-selling scandal.
The Financial Ombudsman’s annual report revealed numerous complaints with regards to hire purchase policies. The vast majority of these complaints have been confirmed as car related, which rose by 73pc to 3,072 from 1,784.
The above made it the third most complained about consumer credit product. It followed closely behind credit agency reports and payday loans.
Last year the number of complaints heightened by 18pc to 1,784 from 1,511.
Motorists are now eligible for loans worth more than their salaries due to hire purchase arrangements.
However, ‘irresponsible’ car loans will be banned due to the fact that car drivers will soon be made to pass mortgage-style affordability tests before hiring cars. According to Ombudsman, majority of complaints were in regards to the ‘return of goods’ category.
A spokesman has said: “Complaints in this category typically include complaints where someone wishes to return the vehicle because they think it has a defect.
“The second most complained about issue was categorized as ‘administration’. Complaints in this category may include errors with the administration of the account – for example incorrect payment amounts being taken or someone’s credit file not being amended.”
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