How Have I Been Mis-Sold on My Finance Agreement?

You could be eligible to reclaim £000s in hidden fees. Are you among the millions of
UK drivers who may have been misled into purchasing car finance through PCP and
Hire Purchase Agreements? The Financial Conduct Authority (FCA), has launched a
major investigation into hidden, unfair car finance commission. This could lead to
billions of pounds of overcharged interest paid back to millions of people.
These commission agreements meant that consumers paid more in interest, which
resulted in dealers or brokers earning larger commission fees. Many motorists may
have assumed they were receiving a fixed rate when, in fact, there were more
affordable options available that the dealer failed to disclose.

You could be eligible to reclaim £000s in hidden fees. Are you among the millions of UK drivers who may have been misled into purchasing car finance through PCP and Hire Purchase Agreements.
The Financial Conduct Authority (FCA), has launched a major investigation into hidden, unfair car finance commission.
This could lead to billions of pounds of overcharged interest paid back to millions of people.

These commission agreements meant that consumers paid more in interest, which
resulted in dealers or brokers earning larger commission fees. Many motorists may
have assumed they were receiving a fixed rate when, in fact, there were more
affordable options available that the dealer failed to disclose.

‍How Have I Been Mis-Sold on My Finance Agreement?
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PCP mis-selling primarily revolves around undisclosed commissions paid from the
finance company to the dealership. If any of the following conditions apply to you
before January 2021, you might be eligible for £000s in compensation through a
PCP or HP claim:
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- The finance company failed to inform you about any sales commissions
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- The finance company mentioned receiving a commission but did not specify the amount
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- You were charged a high & unfair interest rate on your PCP finance
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- You bought a car on a PCP agreement within the last 10 years
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According to the FCA, the average consumer may have paid £1,100 more interest
than necessary. They also estimate that 95% of deals include a commission model
and that 40% were believed to be discretionary commission model (DCA).

This practice, which was banned in 2021, allowed brokers or dealers to offer customers
an inflated interest rate, which they would take as part of their commission.
A consumer often cannot determine if they have been mis-sold a PCP agreement
simply by reviewing their finance documentation. There are several factors to
consider when evaluating the validity of your claim. These include the overall value
of the vehicle, the size of your deposit, and whether appropriate affordability checks
were conducted in relation to your financial situation.
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With a client-centric approach, a wide range of specialised knowledge, and a commitment to fair compensation, we have successfully helped individuals recover their financial losses and restore peace of mind.  As the demand for final salary pension claims specifically continues to rise, CP Financial Claims Scotland will continue to commit to ensuring fair compensation for our clients.

How do I know if a DCA was applicable to my agreement?
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If you took out vehicle finance on a regulated agreement before 28 January 2021,
you may be able to make a discretionary commission arrangement complaint. Our
online form is the quickest way to find out whether you had a discretionary
commission arrangement for your motor finance.

It takes less than 5 minutes. You will then receive an email receipt.

PCP Finance Claims
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Personal Contract Purchase (PCP) agreements are the most commonly sold
financial products for purchasing a car. With an upfront deposit, regular monthly
payments, and a final balloon payment, these agreements make it possible for
many consumers to acquire a vehicle. If any of this sounds familiar, there's a good
chance you've entered into a PCP agreement. These claims seek compensation for
unfair practices or misleading information related to the PCP agreement. If you did
so in the past 10 years, you may be eligible for PCP claims.Hire Purchase Claims
Hire Purchase (HP) agreements involve making regular monthly payments to own a
vehicle, and unlike Personal Contract Purchase (PCP) agreements, they do not
require a large final payment at the end of the term.

While HP agreements are primarily marketed to business clients, individuals can also obtain this type of
financing. HP claims are designed to tackle disputes and seek compensation for any
unfair practices or misrepresentations experienced by consumers. If this sounds
familiar, and you signed a HP agreement within the past 10 years, you may be
eligible to make a claim related to car finance.

FCA Investigations/Latest Update
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The launch of the FCA's investigation on 11 January 2024 marks a significant step
towards addressing issues related to discretionary commission arrangements in the
car finance market. By suspending the 8-week deadline for response, the FCA is
acknowledging the complexity and scale of the issue, allowing providers additional
time to assess and address complaints properly. This investigation by the FCA aims
to enhance consumer protection and ensure that those who have been mis-sold car
finance schemes can seek the compensation they deserve. While complaints can
still be filed, providers are not required to respond until after the FCA makes it's announcement.
However, the FCA now plans to set out its findings in May 2025.
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Consumers can still submit their complaints about potential mis-selling, even though
providers are not obligated to respond until after the designated date. It's important
for affected consumers to keep records of their complaints and any related documentation, as this will be vital for processing claims once responses are required again.

The FCA's actions underline their commitment to holding financial
providers accountable and ensuring that consumers are treated fairly in the car
finance market.What information do I need to provide to be able to claim?

-PCP agreement: A copy of your PCP agreement

- ID: Photographic ID
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- Letter of authority: A signed letter of authority
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- Finance agreement details: Details of any finance agreements you've had
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- Sales process details: Details of the sales process, such as whether you were
told about the commission paid to the dealer
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- Contact details: Your contact details

- Final payment date: The date of the final payment made on your finance
agreement