If you have taken out car finance of £25,000 or more or have taken out finance to consolidate a previous vehicle you could be owed thousands.
Find out if you have been mis-sold your car finance deal now and if you are eligible to claim!
The commission that the sales person made from your contract was not explained.The salesperson who sold the contract failed to explain the interest charges correctly.
The car dealership failed to explain who actually owns the car, whether it be the car dealership or a third party finance company.
The salesperson did not make it clear who is financially responsible for the cost of repairs to the vehicle.
You were not taken through a comprehensive range of options, as other financial products may have worked out in some cases 50% cheaper than a PCP deal.
The information shown below comes from the Financial Conduct Authority (FCA) in which the FCA sent mystery shoppers to 122 car dealerships; these were their findings…Out of the 122 car dealerships visited by mystery shoppers just 11 car dealerships confirmed that commission will be added on this type of deal.
Only 31% of dealers fully explained to the customer that they do not own the vehicle at the end of the contract unless they pay the balloon payment in full.
28% of the car dealers failed to outline the consequences of missed payments.
The FCA have estimated that the mis sold car finance scandal may have cost UK consumers £300,000,000 per year.
Any advice given to a customer which is unsuitable – for example we come across many cases where customers were advised to invest over a number of years (usually a minimum of 5 years) when they were approaching retirement and their financial and personal circumstances were likely to change drastically. This meant they often had to ‘cash in’ their investment well before the recommended 5 years leading to losses. We also speak to many people who were advised to invest when they were in seriously poor health, this is often a clear case of mis-selling.
A PCP deal is basically a loan to help you get a car. But unlike a normal personal loan, you won’t be paying off the full value of the car and you won’t own it at the end of the deal (unless you choose to).
Under normal circumstances, once we send the complaint to the bank they have up to 8 weeks to issue their final response. In exceptional circumstances this can take a little longer but in most cases we usually get a final answer well within the 8 weeks – sometimes in as little as a week!
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.
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
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 £100 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.