Bought a car on finance in the last 10 years
Have a claim for Mis-sold finance deal
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The FCA has found that commission was paid on 95% of UK car finance PCP agreements. If you were not informed about this commission or the finance deal wasn’t right for you, you could be owed thousands in mis-sold car finance compensation.
If you have purchased a new or used vehicle via a car finance deal, your lender is obliged to inform you of exactly what is involved in that deal. You must make an informed decision so that you know the finance deal is right for you. Car salesmen or women cannot act in their own interest.
If you were not informed thoroughly about your PCP agreement and the costs involved, you could be owed mis-sold PCP car finance compensation.
If you believe you have been mis-sold a finance deal, you may be owed thousands. Even if you haven’t lost money, if the car finance deal isn’t right for you and your financial situation you can potentially bring forward a claim for PCP mis-selling. If you used PCP or HP to finance a vehicle between 2014 – 2019, you could be owed thousands.
Some motor dealers are overcharging unsuspecting customers over £1000 in interest charges in order to obtain bigger commission pay-outs for themselves. This is unacceptable. Jonathan Davidson, director of supervision for retail and authorisations at the FCA.
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How It Works
We offer a NO WIN NO FEE service
Submit your form now for a free consultation regarding a motor finance claim. Our team is ready to assist you in your legal matter. Don’t wait any longer, take the first step towards getting the compensation you deserve.
A qualified solicitor will be in touch with you within 48 hours. They will review your case, answer any questions you may have, and provide guidance on the next steps to take. Rest assured, we are committed to providing you with the best legal support and representation.
After the initial consultation with our solicitor, if you decide to proceed with the motor finance claim, we will send you the necessary documents to sign. These documents will outline the legal agreement between you and our firm, and will also provide details of the services we will provide to support your case. Our team will guide you through the process of signing the documents, ensuring that you fully understand their content and implications. Once the documents are signed, we will commence working on your claim immediately.
Once you have signed the necessary documents, you can sit back and relax while we handle the rest of the process. Our team will work on your behalf, gathering all the necessary information to build a strong case. We will keep you updated on the progress of your case and answer any questions you may have along the way. Our goal is to achieve the best possible outcome for you and we will do everything in our power to make that happen. You can trust us to handle your motor finance claim with the utmost care and professionalism.
If all goes well, you can expect to receive your compensation within 6 to 9 months from the date we submit your motor finance claim. We will keep you updated on the progress of your claim throughout this period, and work diligently to ensure that you receive the best possible outcome.
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FAQ
Frequently Asked Questions
A Personal Contract Purchase (PCP) has no legal definition, rather it is a term that has been used by some finance companies as a marketing label for simple hire purchase or loan contracts. Under a normal hire purchase or personal loan agreement you make monthly payments of the same amount and after the term of the agreement expires you own the vehicle. With a PCP you make smaller monthly payments than under a simple hire purchase or loan agreement, but at the end of the agreement you are left with a “balloon payment” which may be as much as half the value of the vehicle. Under a PCP you do not own the vehicle until you have paid the balloon payment.
A key attraction of PCPs for car manufacturers is that the most common choice at the end, or near the end, of the agreement involves the customer returning the vehicle (in order to avoid the balloon payment) and entering into a new PCP. This effectively locks the customer in to buying a particular brand of vehicle.
PCPs may suit customers who wish to change their car every 2 to 4 years. But for customers who want to own their car come the end of the loan agreement, a PCP is usually not the best type of agreement as the customer will end up paying more in interest payments than under a simple hire purchase or loan agreement.
PCPs are in the news because in March 2019 the Financial Conduct Authority (FCA) published the final findings of its review of the motor finance sector. One of many striking findings by the FCA was that “some customers are paying significantly more for their motor finance because of the way lenders choose to remunerate their brokers”. Here, lenders are car finance companies, such as BMW Financial Services (GB) Ltd – brokers are the car salesmen. The FCA report goes on to describe a concern that lenders are encouraging brokers to sell PCPs – presumably so that the customer is “tied in” to a particular brand of car.
By paying the car salesman higher commission. Simples.
There are a number of challenges you can make to the legality of a PCP, but your best bet will be to show that the relationship between you and the lender was unfair as defined by s140A of the Consumer Credit Act 1974. And that relationship is likely to be unfair if you were not told how much commission the car salesman (the broker) was paid by the lender to sell you a PCP.
Lenders must keep records of all their customers’ transactions and dealings for at least 6 years. Under UK data law you are entitled a copy of the sales agreement and supporting documentation and we can make a data subject access request (DSAR) to obtain this documentation for you.
This will vary from case to case and will depend on factors such as the availability of the sales documentation and the stance taken by the lender. If everything goes in your favour you could be paid out in 6-9 months.
This will depend on the amount you borrowed under your PCP and the rate of interest you were charged. The FCA estimate that on a typical PCP where the loan is for £10,000, it is likely that the customer will pay more than £1,100 over the odds in interest – and this amount should be repaid in compensation to the customer if the PCP is judged to be unfair. Needless to say levels of compensation will be far higher when PCPs are used for the purchase of more expensive vehicles.
You may be able to claim compensation for as many PCPs as you have entered into in the last 10 years.
If your claim is rejected you can appeal to the Financial Ombudsman Service. Many claims that are rejected initially go on to be overturned by the FOS, but this will lead to a delay in your claim.
No. Our solicitors will act for you under a “no-win, no-fee” agreement, also known as a conditional fee agreement or CFA. Under this type of agreement you will not pay anything if you do not win your case. If you do win you case you will pay your solicitor a success fee, which typically will be capped at 35% of the compensation you receive.