Mis-sold Car Finance
It’s fair to say that the UK has a passion for cars. A desire to own the latest model leads many people to take out car finance deals. These packages (particularly Personal Contract Plans, or PCPs for short) are usually designed to convince the driver that they’re getting a great deal – particularly when compared to hire-purchase packages. The problem is, on many occasions they were mis-sold to the people that agreed to them because their suitability wasn’t properly assessed, or the obligations and risks not properly explained.
A PCP is similar to any type of personal loan. It usually runs for a set period – in the world of cars, this is typically between two and four years. The loan amount is worked out based on the anticipated depreciation of the car during this time. Once the deal period is over, the driver can opt to make a balloon payment – a sum that’s equal to the estimated worth of the car at that point. They’ll then own the car outright.
Although this sounds good on paper, there are several potential issues with car finance packages, and PCPs in particular. For example, the lack of clarity regarding what the individual will actually owe is a major problem. In fact, the FCA published a report, stating that over 560,000 consumers were paying 50% more on their car finance packages than they should be.
Am I owed compensation for mis-sold car finance?
Did you take finance for your car? There’s a possibility you were overcharged.
The FCA found that some dealerships and finance companies have been overcharging by up to £1,100 a deal. In some cases, it might have worked out better financially to opt into a hire-purchase package instead.
As PCPs are essentially interest-only loans, interest charges can be more expensive than anticipated.
If you feel that this wasn’t adequately explained to you when you agreed to the deal, then this is further grounds for making a mis-selling claim.
Here are some examples of circumstances where you might have been mis-sold a car finance package:
- The salesperson didn’t properly explain the finance deal to you
- You weren’t presented with a range of options
- It wasn’t made clear who is responsible financially for repairs to the vehicle
- The dealership didn’t outline who actually owns the vehicle (in some cases, this is a third-party hire purchase business, not the car dealership)
- The salesperson failed to outline the interest charges properly
I want to claim for car finance mis-selling – what happens now?
Although car finance mis-selling is a relatively new scandal, our team understand the marketplace well and are ready start the process for you today. Customer care is at the heart of what we do, and to date, we’ve successfully won over £120 million in compensation for clients that have been mis-sold a financial product.
If you’ve taken out a car finance package pick up the phone today and talk to one of our team. After running through your situation, we’ll ascertain whether or not you’re in a position to make a claim.
To start the process, call today on 0808 163 1659, email email@example.com. Alternatively, you can enter your details in the form at the top of this page and we’ll call you back.
For more information on mis-sold PCP, visit our PCP Mis-Selling Guide.
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compensation from Halifax
compensation from Santander
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After sending a report to Santander, they agreed with our findings and awarded Mr Snowden an amount of £7,000 made up from a refund of the losses together with interest and compensation.
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We reported our findings to Halifax and within a matter of weeks had secured our client the sum of £26,700 in compensation.
After we sent a detailed complaint to Halifax, Fred was delighted to receive £6,916 from the bank in a matter of weeks.
Having investigated the complaint Lloyds TSB agreed that the advice was unsuitable and agreed to pay the clients £10,000.