Is car finance the next PPI? Claims management firms cause concern

In recent years more than 90% of new car purchases and an increasing number of used cars have been bought on finance agreements. Photograph: Findlay/Alamy

UK consumers were this week urged to avoid the “plague” of claims management firms targeting people who may have been mis-sold a car finance deal. It has prompted suggestions that these firms may regard car finance as “the next PPI”.

Complaints about car finance lenders almost doubled in the last financial year, driven by an increase in third-party firms submitting claims on behalf of individuals.