Mis-sold car finance claims
If you have bought a car through a finance deal before 28 Jan 2021, you could be one of the thousands in the UK to be owed mis-sold car finance compensation.
Enter your details to find out if you are eligible to claim compensation.
We are vehicle claims experts
The team at Slater and Gordon are vehicle claims experts and we are working hard to ensure those consumers that have been unlawfully affected by this receive the compensation they deserve.
To find out if you are one of the consumers affected, you can simply check your vehicle here and we'll be in touch.
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What are mis-sold car finance claims?
Car finance (hire purchase or personal contract purchase) agreements can be complex, and the Financial Conduct Authority (FCA) has recently found that commission was paid on 95% of contracts taken out. This in itself isn’t necessarily a bad thing – however some commission was ‘hidden’ in the contract.
This refers to a practice in which car dealers and salespeople could earn more commission if customers were sold more expensive contracts, and the customers themselves were unaware of the commission. As a result, the contracts they have entered into may have had hidden charges or higher rates of interest.
When customers take out car finance contracts, it is essential they are given the information they need to determine whether the contract they are entering into works for them and is financially valid. If you have taken out a PCP or HP contract where information has been withheld, or purposefully confused or hidden, you may have been mis-sold, and are therefore entitled to make a claim.
Can I make a car finance claim?
Taking out a car finance agreement is a significant commitment, and if you haven’t been given the information and transparency you need to make the right choice, you are entitled to make it right.
If you feel you’ve been mis-led or kept in the dark about discretionary commissions or additional costs that have inflate the price of your contract, you may be eligible for compensation.
How do you know if you've been mis-sold car finance?
It can be difficult to know whether you have been mis-sold car finance. The FCA has warned that you may have been mis-sold PCP or HP finance if any of the following are true:
- You bought a car under a finance scheme (such as a hire purchase or PCP agreement) before 28 January 2021
- There was a discretionary commission arrangement between your lender and broker
- You were not aware of the commission being made by the dealership
- You were not made aware of the additional costs you could incur through your finance agreements, such as charges for damages.
If you have been affected by any of the above, or felt you were pressured into taking out car finance with your dealership, you may be eligible to make a claim.
How much are people getting for mis-sold car finance?
The value of a mis-sold car finance claim will depend upon the total value of the contract, the amount of interest you paid, and the value of any hidden charges. This means that some could be owed thousands in compensation.
Which finance companies are being investigated for mis-sold car finance?
There are a number of finance companies suspected of mis-selling car finance. Some of the lenders being investigated include:
- Black Horse
- Lloyds Banking Group
- Close Brothers
- Royal Bank of Canada
- Barclays Finance
If you have taken finance out with any of the lenders above, you could be eligible to receive compensation. It is also worth noting that this list is not exhaustive; if you think you have been mis-sold finance by another provider, it is worth and finding out if you’re eligible.
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