What to Do If Your Lender Rejects Your Initial Complaint

Receiving a "No" letter is disheartening, but in the world of financial claims, it is standard operating procedure for many institutions.

Analyse the Rejection

Why did they say no?

1. "No DCA found": They claim the dealer had no discretion.

- Action: Ask for proof. Request a copy of the commission agreement between them and the dealer under a Subject Access Request.

1. "Time Barred": They claim it's too late.

- Action: Challenge this. The "clock" for complaining often starts from when you became aware of the issue (i.e., when the news broke recently), not when you bought the car.

1. "Fair Commission": They admit commission but say it was reasonable.

- Action: This is subjective. The FOS may disagree.

Escalate to the FOS

If you are not satisfied with their answer, you have 6 months from the date of their rejection letter to take it to the Financial Ombudsman Service.

• This costs you nothing.
• It forces an independent review.
• Lenders often settle once they know the FOS is involved, to avoid the case fee (lenders pay ~£750 per case, regardless of the outcome).

Persistence Pays

Many valid claims are rejected at the first hurdle in the hope that the customer gives up. Be the customer who doesn't.