The Definitive Guide to PCP and Mis-Sold Car Finance Claims
Car finance mis-selling is more common than you might
think. Find out if you’ve been mis-sold and how to claim compensation.
What Is Mis-Sold Car Finance?
- PBuying a car on finance is popular, but it can often be confusing.
- PMisleading information and hidden commissions can result in unaffordable agreements, leaving you paying more than you should.
- PThe Consumer Credit Act of 1974 protects consumers like you, but mis-selling can still occur.
Were you mis-sold car finance? Our guide will help you determine if you are eligible for a claim.
Was I Mis-Sold Car Finance?
If you answer yes to any of these questions, you may have been mis-sold car finance:
Affordability Checks
- ZWere you not asked to provide proof of income?
- ZDid the lender fail to review your expenses or existing debts?
- ZWere the checks incomplete or rushed?
Agreement Clarity
- ZWas the APR or monthly payment not clearly explained?
- ZDid you not fully understand the total cost, including extra fees?
- ZWere the checks incomplete or rushed?
Sales Tactics
- ZDid you feel rushed or pressured into signing?
- ZWere you told the deal was time-limited?
- ZWere you discouraged from seeking independent advice?
Hidden Costs & Commissions
- ZWere you unaware of any dealer commissions?
- ZDid unexpected fees arise later?
- ZWere add-ons included without your clear consent?
We’re Here to Help!
If you believe you’ve been mis-sold car finance, Check a Claim can assist you in making a claim. Our expert team will guide you through the process, offering “no win, no fee” support to help you recover what you’re owed.
Avoiding Mis-Sold Car Finance
To avoid being mis-sold car finance, keep these tips in mind:
Do Your Research:
Compare different types of finance, such as PCP, HP, or personal loans.
Verify Affordability Checks:
Ensure the lender reviews your income, expenses, and debts.
Demand Full Disclosure:
Get clear information on the APR, monthly payments, and total loan cost before signing.
Avoid Pressure Sales Tactics:
Check for Hidden Commissions:
Ask about dealer commissions and ensure all costs are disclosed upfront.
Keep Written Records:
Document all agreements, promises, and correspondences.
Types of Car Finance Agreements
Here are some common types of car finance agreements:
Hire Purchase (HP):
You own the car after completing monthly payments.
Personal Contract Purchase (PCP):
You pay lower monthly amounts, but a large final payment is required to own the vehicle.
Personal Contract Hire (PCH):
Essentially a long-term rental with no option to buy.
Eligibility for Mis-Sold Car Finance Claims
You may be eligible to claim if:
- You purchased a vehicle using finance before January 28, 2021.
- You were misled about commissions or interest rates.
- Your finance agreement lacked proper affordability checks.
Common Cases of Mis-Sold Car Finance
- Unclear interest rates or higher-than-agreed rates.
- Lack of cost disclosure for the full agreement.
- Pressure sales tactics used by the dealership.
- Undisclosed commissions leading to inflated costs.
- Finance option unsuitable for your financial situation.
How Much Compensation Could You Claim?
Compensation varies based on:
- Loan size and hidden commissions.
- Discrepancies in interest rates.
- The duration of the finance agreement.
Example:
If a £20,000 car loan included a 15% hidden commission, you could be entitled to reclaim over £3,000, plus any excess interest paid.
We’re Here to Help!
If you believe you’ve been mis-sold car finance, Check a Claim can assist you in making a claim. Our expert team will guide you through the process, offering “no win, no fee” support to help you recover what you’re owed.
Frequently Asked Questions
Some common questions related to mis-sold car finance:
Who can claim compensation for mis-sold car finance?
If you believe you were misled or not provided with all the necessary information when you entered into a car finance agreement, you may be eligible to claim compensation. This can include individuals who were given unfair terms, not properly informed of interest rates, or placed on unsuitable finance deals, such as Personal Contract Purchase (PCP). Eligibility typically depends on the specific details of your case, and you should seek advice to confirm if you can claim.
How much compensation can I seek?
The amount of compensation you can claim depends on the nature of the mis-selling and the terms of your finance agreement. Compensation could include reimbursement of excessive interest charges, the removal of unpaid debt, or a refund of payments made under a mis-sold agreement. Each case is different, so the exact figure will vary based on the circumstances and the financial losses you’ve incurred.
How long does the claims process take?
The length of the claims process can vary depending on the complexity of the case and how quickly the relevant parties respond. On average, a mis-sold car finance claim can take anywhere from a few months to over a year to resolve. We will keep you informed of progress at each stage and work to conclude your claim as swiftly as possible.
Do I have to return my vehicle after a successful claim?
In most cases, you will not need to return your vehicle after a successful claim for mis-sold car finance. The compensation typically relates to financial losses rather than the return of the vehicle itself. However, every case is unique, and we will advise you on what to expect based on your individual circumstances.