You are contacted out of the blue by a call or text and told you are due compensation for your mis-sold car loan. They say they are calling from the lender and just need your details to process your claim.
With the recent news that UK motorists could be in line for payments of up to £950 each if they were victims of car finance mis-selling, the call or text might not be a surprise – particularly if you are one of millions who has written to your lender saying you think you may be owed money. But do not fall for it.
This week, the Financial Conduct Authority (FCA) warned that drivers were being targeted by scammers posing as lenders. The FCA is in charge of working out who lenders will need to compensate and how, and says it will be October before it has announced how the scheme is likely to work – next year before payouts can be made.
In the meantime, lenders will not be contacting customers to arrange a payment, so you can safely assume that anything promising money is a scam.
What it looks like
It could be a call from a mobile number or a text – on the website Whocalledme one number used had also been linked to other frauds.
Some have reported being called by someone claiming to be working for a car finance company. Other reports say drivers have received a text with their car model and registration in it, and a message telling them they needed to follow a link and complete a registration.
In one message shared online it looks like the driver was told they might be entitled to a payment of up to £16,000.
What to do
The FCA says if you receive a call like this you should hang up immediately. Do not share any information with the caller.
In the UK you can report scam calls and texts to Ofcom by forwarding them to 7726.
If you do think you may be owed money, sit tight. The FCA will tell lenders how they need to deal with claims for compensation and, at that point, you may be paid automatically, or contacted for more information on your finance deal. Even then, be wary and do not give personal details via online links.