Have you bought a new or used car using finance in the last ten years? If you have, that finance agreement may have been mis-sold to you, and you may be able to claim hundreds, if not thousands of pounds in compensation.
Mis-selling a car finance deal means that you have either received poor advice, you weren’t given all the information about a deal or the risks weren’t made clear to you. It usually leads to you ending up with a deal and a car that doesn’t suit your needs or financial means.
You may have been a victim of mis-sold motor car finance if you received poor advice on your financing options or if you were not sufficiently made aware of the various commissions being charged within your agreement.
Unknown to customers buying vehicles, lenders systematically incentivised brokers and car dealers to charge their customers higher interest rates so they could receive higher commissions themselves.
A recent Financial Conduct Authority (FCA) investigation discovered widespread evidence of mis-selling on all types of vehicle financing options.
“Unknown to customers buying vehicles, lenders systematically incentivised brokers and car dealers to charge their customers higher interest rates so they could receive higher commissions themselves”
It is estimated that hundreds of thousands of motorists might have been mis-sold finance packages, costing consumers up to £300m a year.
Mis-selling was discovered on all motor vehicle types, including new and used cars and vans under all vehicle financing options such as personal contract hire (PCP), hire purchase (HP), Contract hire or a car loan.
The exact amount you may be able to claim will be dependent on several factors. These include;
- The size of the loan. The larger the loan, the more you’ll be able to claim.
- How long ago you signed up for the loan. The longer the loan period, the more you’ll be able to claim.
- What interest rate you were quoted, and how much difference there is between the rate quoted and the rate you should have been quoted.
Amounts are similar for all types of motor vehicles, including vans, trucks, 4X4s. In some circumstances, we may be able to claim back the optional extras you may have added to your agreement, such as insurance, tax, maintenance, breakdown cover, and servicing.
You can claim for any mis-sold car finance agreement that you may have entered into in the last ten years.
We will be able to review your agreement and tell you instantly if you have been mis-sold and if commissions have been unfairly manipulated. We will let you know how much you may be able to claim if we see evidence of this in your agreement.
Don’t worry if you can’t find the agreement or remember who the lender or dealership was. We can find your agreement on just the name of the company you made the payments to. You should be able to find this information on your old bank statements.
Additionally, car finance companies must keep all contractual agreements with their customers for at least the last six years.