Mis-Sold Car Finance

Have You Been Mis-Sold Car Finance?

If you purchased a car on finance before January 2021, you could be owed thousands in compensation

Since 9 out of 10 UK car consumers pay for their vehicle using either an HP or PCP finance agreement, it is estimated that hundreds of thousands of UK residents may have paid more than they should. If you took out a finance agreement for a vehicle before 28th January 2021, you could be owed thousands of pounds in compensation.

What Is A Mis-Sold Car Finance Claim?

Let’s face it, Car finance agreements, whether through Hire Purchase (HP) or Personal Contract Purchase (PCP), can be complicated and most of use never bother to read the small print. We often assume that we are protected and that everyone is being honest, however this isn’t always the case.

Recently, the Financial Conduct Authority (FCA) discovered that commission was included in 95% of these contracts.

While commission itself isn’t necessarily a problem, some of it was concealed within the contracts, therefore you , the consumer, wouldn’t have known it was there.

This practice allowed car dealers and salespeople to earn higher commissions by selling more expensive contracts without the customers’ awareness. Consequently, these contracts might contain undisclosed charges or elevated interest rates.

It’s crucial for customers to receive transparent information when entering into car finance agreements to ensure their financial suitability. If you’ve entered into a PCP or HP contract where pertinent information was withheld, confused, or obscured, you might have been mis-sold and could be eligible to file a claim.