If you’ve ever financed a vehicle through a Personal Contract Purchase (PCP) agreement, there’s a chance that you may have been mis-sold car finance and be entitled to receive compensation.
At Mark Reynolds Solicitors, we’ve helped countless clients across the UK to claim compensation for mis-sold finance deals.
If you believe you’ve been sold a car finance agreement that was unfair, unclear, or not properly explained, our team of finance claims experts is ready to guide you through the process of making a car finance claim.
Give us a call today by dialling 0800 002 9577 to learn more about our dedicated no-win, no-fee service.
What is a mis-sold car finance PCP agreement?
Motor finance companies offer customers the opportunity to buy or lease new vehicles using flexible Personal Contract Purchase (PCP), Hire Purchase (HP), or Personal Contract Hire (PCH) agreements.
Customers who enter into these agreements pay the finance company an initial deposit, followed by monthly payments and an optional balloon payment if they want to own the vehicle at the end of the contract.
In March 2019, the Financial Conduct Authority (FCA) reported that many UK car finance companies were overcharging customers by charging secret commission payments and inflated interest rates on motor finance deals.
Some customers ended up paying thousands more than necessary and entering into agreements that were unsuitable or unaffordable to them.
This is a serious breach of their legal rights under the Consumer Credit regulations.
If you entered into a PCP, HP, or PCH agreement on or after 6 April 2007, you may be able to claim compensation for mis-sold car finance if the motor finance company or broker failed to explain the terms of the deal clearly, charged secret commission or inflated interest rates, or put their own interests ahead of yours.
Signs you may have been mis-sold car finance
When entering into a car finance deal, customers must be provided with clear and transparent information about the deal, including full details about the agreement’s key terms, APR, total repayable amount, and any fees or charges.
They also have the right to be informed if the broker or dealership is receiving a commission from the lender.
Failing to disclose any of this information may be classed as mis-selling.
Common signs that you may have been mis-sold car finance include:
- Commission payments were not disclosed
- The APR or interest rate wasn’t explained
- You felt pressured into taking the deal
- The terms of the agreement were not fully explained
- You were not told about penalties or additional charges
If you believe you may have been overcharged or subject to poor lending practices, get in touch with our team here at Mark Reynolds Solicitors to find out if you have the grounds to make a claim.
Who is eligible to make a vehicle finance claim?
Many motor finance deals taken out between April 2007 and January 2021 were mis-sold.
If you believe you are one of the many customers who have been mis-sold car finance, then you may be eligible to claim compensation if:
- The finance provider failed in their duty of care
- You entered into a PCP or HP agreement after April 1, 2007 and January 2021
- The deal involved undisclosed commission arrangements
- You were not offered the best available interest rate
- Proper affordability checks were not conducted
Even if your agreement has ended or the car has been sold, you may still be eligible for compensation.
How much compensation can you receive for PCP claims UK?
The amount of compensation you are owed depends on the details of your case.
Compensation may be awarded to cover:
- Any extra interest you paid
- Hidden commission fees
- Overpayments on your monthly instalments
- Additional charges you were not made aware of
- The emotional distress caused
The amount of compensation you receive will depend on factors like the amount borrowed, the interest rate charged, the duration of the agreement, and any additional fees or charges you incurred.
On average, most successful PCP finance claims result in payouts of between £1,000 and £3,000.
How does the motor finance claims process work?
Understanding whether you have been mis-sold car finance can be tricky, particularly if the agreement has ended or you no longer have the paperwork to hand.
At Mark Reynolds Solicitors, we offer a free initial consultation and a no-win, no-fee service, making it simple and risk-free for you to find out whether you are owed compensation for mis-sold car finance.
Here is how our claims process works:
- Initial consultation: During your initial consultation, one of our experts will speak to you to find out more about your situation and the car finance agreement in question
- Assessment: Armed with this information, we will review the agreement and determine whether you have a valid car finance PCP claim
- Claim submission: If you are eligible for compensation, our team will liaise with the lender on your behalf and submit your claim for compensation. We will provide you with regular updates on how your claim is progressing
- Resolution: Our team will work tirelessly on your behalf to ensure that you get the best possible outcome from your claim. Most PCP claims take six to 12 months to resolve
Why choose Mark Reynolds Solicitors for PCP claims?
Ready to find out if you’re due compensation for a mis-sold car finance agreement?
Mark Reynolds Solicitors is one of the leading law firms in the North West of England.
We offer personalised legal advice and support and a no-win, no-fee service, meaning you don’t need to pay us unless your claim is successful.
Call 0800 002 9577 to arrange a free initial consultation with a finance claims expert and take the first step towards claiming the compensation you deserve.