PCP Claims: Claim For Mis-Sold Car Finance
Did you purchase a car on finance between 2007 and 2021? If so, you could be owed thousands in compensation. Enter your vehicle registration number to see if you are eligible for compensation.
PCP Claims: Claim For Mis-Sold Car Finance
Did you purchase a car on finance before 28 January 2021? If so, you could be owed thousands in compensation. Enter your vehicle registration number to see if you are eligible for compensation.
With 9 out of 10 UK consumers opting to pay for new and used cars on finance, it’s estimated hundreds of thousands of people could have been mis-sold car finance. If you took out car finance between 2007 and 2021, you could be eligible for thousands of pounds in compensation.
Also claim for mis-sold finance on other vehicles...
What are mis-sold car finance PCP claims?
In January 2024, the Financial Conduct Authority (FCA) launched an investigation into hidden commissions charged on finance packages for new and used vehicles before 28 January 2021 amid concerns consumers were paying over the odds for contracts involving hidden commission payments.
It’s suspected that almost every car finance agreement would have involved a commission payment – roughly 95% of all finance deals – and consumers were not adequately informed that these payments were being made, meaning finance deals were routinely mis-sold.
If you took out vehicle finance between April 2007 and January 2021, it is likely you could be owed compensation for mis-sold car finance.
Can I make a car finance claim?
For many people, it can be difficult to know if you’ve been mis-sold car finance. You may have been entirely unaware of the commission hidden in your contract, or the additional costs that may have been associated with your agreement. The FCA has said that you may have been affected by hidden commission if any one of the following are true:
- You bought a car under a finance scheme (such as a hire purchase or personal contract purchase) before 28 January 2021
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​You have become aware of a commission arrangement between your lender and broker
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​You were not aware of the commission being made to the dealership at the time of purchase
If you have been affected by any or all of the above, you could be eligible to claim compensation for mis-sold car finance.
The majority of car finance deals made before 28 January 2021 could have included hidden commissions. Find out if you’re eligible for a mis-sold car finance refund.
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What are the most common types of mis-sold car finance?
Undisclosed or hidden commission
It is thought that 95% of all vehicle finance agreements taken out between April 2007 and January 2021 included a form of commission payment.
It’s suspected that in most cases, consumers were not adequately informed their contracts included a commission payment and subsequently were incapable of giving informed consent. This means that finance agreements involving commission – no matter the type or level of commission – were likely mis-sold, and consumers have a right to claim compensation.
Inflated prices and interest rates
Prior to the FCA banning DCAs in January 2021, some brokers were offered larger commission payments if they signed customers up for loans with higher interest rates. The result was the many people were paying more interest than they should have been, often over a period of many years. This could have left some people out of pocket by thousands of pounds.
Sales people mis-leading you
While hire purchase (HP) and personal contract purchase (PCP) agreements are quite popular options for purchasing a new vehicle, they are not always the right option for everyone. Sales people should fully explain the detail of any agreement that is offered, as well as ensuring you are aware of alternative options and have the opportunity to consider the right solution for you. Unfortunately, this is not always the case, and some people are mis-led into agreeing to a contract that may not be suitable for them. Â
Failure to conduct affordability checks
Credit brokers and lenders have a duty to ensure that the loans they offer are affordable to their customers, and should always carry out affordability checks to prevent anyone taking out a loan that is unsuitable for their circumstances.
Where checks are not carried out properly, customers can find themselves stuck in unaffordable loan agreements for years, causing undue stress and financial issues.
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Finance companies mis-selling car finance
The FCA’s investigation is currently underway and is predicted to continue until May 2025.
There are a number of finance companies and lenders suspected of mis-selling car finance.
We are happy to take on all complaints relating to vans, caravans, motorbikes, boats, planes or any other motor vehicles, but please note that the ongoing FCA investigation is in relation to cars only. The other categories of motor vehicle complaints will be explored with the Regulator moving forwards.
Think you have been mis-sold on your car finance agreement? Check your eligibility now for a refund.
The process of claiming compensation for mis-sold car finance
It can seem like a daunting undertaking to start a claims process for mis-sold car finance, especially if you believe that you could have been mis-sold more than one car before January 2021. However, it doesn’t need to be complicated.
At Slater and Gordon, we’re working hard to ensure that everyone affected by the mis-sold car finance scandal has the opportunity to claim the compensation they deserve, without the headache. We make the process straight-forward – simply enter your registration number to find out if you’re eligible. We’ll let you know whether you’ve been mis-sold car finance, and begin negotiations for your refund with your lender. Â
How is the amount of compensation calculated
The amount of compensation you receive for your mis-sold car finance will be dependent on a number of different factors, including:
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​The difference in the interest rate you should have been charged, and the one you ultimately were
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​How long you’ve been making re-payments on your loan (as this will determine how much money you’ve put into the loan to date)
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​The value of the loan you took out (the higher the value, the more interest you will have been charged)
For some, this could amount of thousands of pounds. It’s also worth remembering that if you’ve taken out multiple finance agreements before 28 January 2021, you could be eligible to make more than one claim.
Why choose Slater and Gordon for your car finance claim?
If you’re looking to make a car finance claim for compensation, our experts are here to help. Slater and Gordon was the chosen law firm representing the majority of claimants in the recent £193 million VW settlement in England and Wales. You can be rest assured that your claim is in safe hands with our collective action specialists.
At Slater and Gordon, we know that banks and financial institutions are not above the law. By joining our car finance group action, you’ll have the chance to hold these large corporations accountable for their actions. Check to see if you are eligible to make a claim here.
Did You Purchase a Car on Finance Before January 2021? Find out if you qualify to claim.
What are the most common types of mis-sold car finance?
Personal contract purchase (PCP)
A PCP is a popular way of financing a car. Taking out a car on a PCP finance agreement means that you typically pay a deposit up front and then a monthly fee for the car for an agreed number of years. Towards the end of the deal there is the ability to either give the car back for no extra cost or you can pay a substantial lump sum which enables you to keep the car, or you can put the value towards a different car with the same dealership.
HP is another way to finance a car. Ordinarily you will pay a deposit, then pay a set amount each month until the loan for the value of the car is paid off in full. With HP, you will own the car once you have made all of the required loan payments.
What is the process?
There are a number of options available to you to make a mis-sold car finance claim. You can self-represent and approach the lender directly, go to the Financial Ombudsman Service (FOS), OR you can submit a claim with us and we'll do all the legwork for you.
Slater and Gordon operates on a No-win-No-fee basis. This means it costs you nothing upfront to join. If your claim is successful, we'll take a pre-agreed percentage as our fee. If we do not win your claim, you won't owe us a penny.
Frequently Asked Questions
Am I eligible to make a car finance claim?
If you have taken out a car finance contract, such as a hire purchase (HP) or a personal contract purchase (PCP) agreement, before 28 January 2021, you could be eligible to make a car finance refund claim.
Currently, there is no firm indication of how far back the FCA investigation is going to go, as commission models such as DCAs were in use for many years before they were banned. However, it is a likely assumption that only contracts made after April 2007 will be considered, as this is the date the FCA took over the regulation of motor finance.
Are all types of vehicle financing eligible to make a claim?
You should be eligible if:
  •  your car finance was a personal contract purchase (PCP) (which is a bit like a loan to help you buy the car); or
  •  a hire purchase agreement (which is where you pay off the value of the car in monthly instalments).
You probably won’t be eligible if you were just leasing a vehicle.
How do I sign up to make a car finance claim?
Signing up for a car finance claim doesn’t need to be a headache. At Slater and Gordon, we aim to make the process as stress-free as possible – to register your claim with us, simply enter your registration number at the top of this page, and we’ll do the rest.
Am I affected by the car finance scandal?
If you’ve taken out car finance between April 2007 and January 2021, you could have been affected by the use of hidden commission. To check your eligibility, enter your details above and we’ll let you know if you have a claim.
Can I claim for multiple finance agreements?
Yes, you can. This is because each claim is made in relation to a singular car finance contract. If you’ve had multiple vehicles on car finance between 2007 and 2021 which you think may have been mis-sold, you can make a claim for each one. Enter your details above to start your claims today.
How long will the claim take?
The length of time it takes to finalise a claim can vary. However, we’ll work hard to ensure you get the compensation you deserve and will keep you updated throughout the process.Â
Why choose Slater and Gordon?
Slater and Gordon’s specialist collective actions team are experts in this field. We recently helped more than 70,000 claimants in England and Wales to secure a settlement payment of £193 million winning more compensation than any other law firm in the UK. Â
News
UK car finance: ‘millions of drivers could get payout’ as watchdog investigates
  The Guardian
Car finance misconduct probe could lead to compensation payouts
  Sky News
Watchdog to investigate compensation over car loans
  BBC
Enquiries
To contact Slater & Gordon UK please use the details below
carfinanceclaims@slatergordon.co.uk
0330 107 6472