Frequently Asked Questions On Mis-sold Car Finance Claims?
What constitutes a mis-sold PCP motor vehicle finance agreement?
A PCP agreement may be considered mis-sold if the salesperson failed to disclose all pertinent information, such as the total cost, interest rates, commissions, or if they provided misleading advice.
Am I eligible to claim compensation for a mis-sold PCP agreement?
You may be eligible if you entered into a PCP agreement between April 2007 and January 28, 2021, and believe the finance was misrepresented or key details were withheld.
What types of vehicles are covered under mis-sold PCP claims?
Claims can be made for all vehicle types, including cars, vans, trucks, and motorcycles, whether new or used, purchased through PCP financing.
Can I claim if I've already paid off my PCP agreement?
Yes, even if you’ve completed payments or no longer own the vehicle, you can still pursue a claim for mis-sold PCP finance.
How do I determine if my PCP agreement was mis-sold?
Indicators include lack of information about commissions, undisclosed interest rates, insufficient explanation of terms, or pressure to accept a specific finance deal.
What compensation might I receive from a successful claim?
The average compensation is approximately £1,600, but some claims have resulted in refunds up to £10,000, depending on individual circumstances.
Is there a time limit for making a mis-sold PCP claim?
While there’s no strict deadline, it’s advisable to initiate your claim promptly to ensure all necessary documentation is accessible.
What if I don't have my original PCP agreement documents?
You can retrieve details by checking emails, paper records, contacting the finance provider, or obtaining a copy of your credit report, which often lists past finance agreements.
Can I claim if I obtained PCP finance through a dealership?
Yes, many mis-sold PCP agreements were arranged through dealerships where full disclosure wasn’t provided.
What is the process for filing a mis-sold PCP claim?
The process typically involves assessing your eligibility, gathering necessary documentation, submitting a claim to the finance provider, and potentially escalating to the Financial Ombudsman Service if required.
How much will it cost to make a claim?
If we are successful in obtaining an offer or payment of Compensation, then you pay us a Success Fee which is calculated based on the amount of Compensation your lender offers per credit agreement. The table below details the Success Fee percentage applicable to different bands of Compensation, and the maximum total Success Fee for each compensation band:
| Compensation | Success Fee Percentage | Maximum Fee Charge |
|---|---|---|
| £1 – £1,499 | 30% | £420 |
| £1,500 – £9,999 | 28% | £2,500 |
| £10,000 – £24,999 | 25% | £5,000 |
| £25,000 – £49,999 | 20% | £7,500 |
| £50,000 or more | 15% | £10,000 |
The percentages and amounts in the table above are exclusive of VAT, which is charged at the prevailing rate.
If you have an outstanding balance with your Lender, they may use all, or part of, your compensation to pay this outstanding balance meaning that you may not receive any cash “in hand”. In this event, our Success Fee will still be calculated against the full compensation amount.
Example 1: If your Lender makes an offer of £1,000 compensation and you have no outstanding balance with the Lender, your Lender will pay us £1,000. Of this, £360 will be deducted to pay our Success Fee and VAT, and £640 will be paid to you.
Example 2: If your Lender makes an offer of £1,000 compensation and you have an outstanding balance of £800 with the Lender, your Lender may use the compensation offered to pay the outstanding balance meaning they will only pay us £200. We would use this £200 toward our Success Fee and VAT, which would leave a balance of £160 payable by you.
How long does it take to resolve a mis-sold PCP claim?
The duration varies, but on average, claims can take several months to reach a resolution, depending on the complexity and responsiveness of the finance provider.
What if my claim is rejected by the finance provider?
If your claim is denied, you can escalate the matter to the Financial Ombudsman Service for an independent review.
Can I claim if I refinanced my vehicle or traded it in?
Yes, refinancing or trading in your vehicle doesn’t negate your right to claim for a mis-sold PCP agreement.
Will making a claim affect my credit score?
Filing a claim shouldn’t impact your credit score, as it’s a separate process from your credit reporting.
Can I claim if I was informed about the commission but not its amount?
Yes, if the exact amount or impact of the commission wasn’t disclosed, leading to higher costs, you might have grounds for a claim.
Are businesses eligible to claim for mis-sold PCP agreements?
Yes, both individuals and businesses that entered into mis-sold PCP agreements can pursue compensation.
What role does the Financial Conduct Authority (FCA) play in these claims?
The FCA conducted investigations revealing widespread mis-selling in car finance agreements, leading to increased scrutiny and avenues for consumers to claim compensation.
Can I handle the claim myself, or do I need professional assistance?
While you can file a claim independently, seeking professional assistance can help navigate the complexities and improve the likelihood of a successful outcome.
What documentation is required to support my claim?
Essential documents include the finance agreement, correspondence with the dealer or finance company, and any evidence indicating mis-selling practices.
