Mis-sold car finance agreements are common in the UK. If you were mis-sold a finance deal when purchasing a car, the good news is that you can claim compensation for it. By working with the right mis-sold car finance solicitors, you could reclaim thousands of pounds spent on your car financing.
To make a claim, it’s important to understand the different types of mis-selling that happen with car finance options.
In this guide, we’ll explain how to identify mis-sold car finance, what types of issues commonly exist, and how you can make a claim for compensation.
Have you been a victim of a mis-sold car finance agreement? This is only too common in the UK, with thousands of vehicle buyers making claims against mis-sold car finance.
There are a number of ways that car finance deals can be mis-sold. Usually, this happens when a customer takes out a Personal Contract Purchase (PCP) agreement, and car dealerships and finance companies do not disclose all of the necessary information around the finance deal.
This is generally due to commissions that the finance company pays the salesperson. However, there are other reasons to make a mis-sold car finance claim compensation.
Mis-sold car finance can also occur on a hire purchase agreement, personal contract hire, or any other type of car loan. The mis-selling could be due to:
hidden commissions
a lack of affordability checks
high-pressure sales tactics
inflated prices
overcharged interest
and even emissions scandal claims
If you have found something wrong with your car finance agreement that you weren’t aware of when purchasing it, then it’s possible that you have been mis-sold a finance agreement. If this is the case, it’s possible to make a claim for car finance customers’ compensation to get your money back. Mis-sold car finance solicitors can help you with this.
PCP agreements are the most common vehicle financing options. But, unfortunately, it’s common to get stuck in a bad agreement. Many car dealers sell PCP finance agreements without treating customers fairly.
This is because car dealers often earn a large commission from vehicle finance companies so they mis-sell PCP deals to obtain bigger commission payouts.
Maybe the customer received poor advice on the PCP car finance, or they were sold an agreement that they can’t actually afford. Motor dealers might also be guilty of mis-selling PCP car finance if they don’t offer other financing options to the customer.
Whatever the case, a mis-sold finance agreement generally ends with the customer not being able to make all monthly repayments due to high-interest rates and hidden fees.
One of the most common mis-sold finance agreements comes from hidden commissions. This happens when the car finance company pays the car dealer a commission for customer loans. This commission is funded through high-interest rates and hidden fees.
The car dealer does not disclose this commission, and they become guilty of overcharging unsuspecting customers in order to earn a bigger payout from the finance provider. This is a hidden commission and it is one of the most common issues around mis-selling finance agreements for new or used car sales.
If you were a victim of mis-sold vehicle finance in the form of hidden commissions, then you can make a claim against the motor finance broker. The claim is for compensation on the exact amount of interest that you paid to fund the commission. The larger the loan, the greater the owed compensation will be on these PCP claims.
If you purchased a vehicle between March 2016 and December 2020 using a PCP finance agreement, then you may be able to make a PCP mis-selling claim.
You will need to go over your loan agreements carefully to identify whether your financial package does include mis-selling. You will also need to review all correspondence with the car retailers to check exactly what information they disclosed to you.
If you are eligible to make a claim, this will need to be done to the Financial Ombudsman Service (FOS). It is important to work with someone recognized by the Solicitors Regulation Authority to help you put together your claim and identify whether mis-selling took place. Our panel of solicitors can help you understand what you can claim for and get the claims process started.
An experienced PCP claims solicitor will help you identify whether your claim is valid. We will be able to find how much you were overcharged on your interest rate and identify the favourable lending terms that you should have been offered.
Making a PCP claim is not easy without a solicitor to help you. And not only will one of our solicitors help you put together a valid claim, but they will also help you get a greater compensation payout.
If you want to make a PCP claim, then you will need to work with an experienced PCP claims solicitor to help guide you through the process. Your PCP claim will need to be put forward to the FOS.
To make a PCP claim, you will need to have your financial agreement documents available, the hire purchase agreement, and any other evidence that will support your claim.
You will need to identify where the car salesperson was guilty of mis-selling and how much difference the interest rate should be.
With widespread mis-selling taking place across the UK, many vehicle owners are identifying and putting forward mis-sold finance claims. If you think you have been mis-sold a car finance agreement, then it’s time to get started with the claims process.
To do this, you’ll need to work with an experienced PCP solicitor. Paxton Willis can help connect you with an expert solicitor to put together your claim and make sure you get paid the best possible compensation. Get in touch with us today if you want to start putting your mis-sold car finance claim into action.
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