Have you ever bought a car on finance?
If yes, it’s quite possible you were mis-sold and that you paid a secret commission. An investigation by the Financial Conduct Authority has found evidence of widespread mis-selling across all types of car financing options.
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Have you ever bought a car on finance? If so, there’s a potential that you might have encountered a situation where you were misled, possibly resulting in undisclosed commissions. Recent scrutiny by the Financial Conduct Authority has unveiled indications of extensive mis-selling within various car financing avenues.
In certain cases, undisclosed commissions were received by car retailers from lenders, with ties to the interest rates imposed on customers. The noteworthy aspect here is that car retailers, having the authority to determine interest rates, found an incentive to promote higher-cost credit, a practice contrary to the best interests of their clientele.
Complaints received in the last year
Year-on-year increase in car-finance complaints
Of new cars are bought on finance
Amount borrowed to finance new cars per year.
*As of October 2023. Figures quoted by Motor Finance Online.
Referred to commonly as a PCP claim, the potential for a claim arises if you financed the purchase of your car. The possibility of a mis-sold car finance claim exists, and a quick and straightforward method to ascertain this is for us to evaluate your car finance agreement. We will investigate whether any ‘secret’ commissions were disbursed to the car dealer or finance broker for arranging the credit agreement. Reflect on the following questions:
If uncertainty surrounds these aspects, it’s probable that you did not receive the best advice, indicating a potential case of mis-selling.
You are eligible to claim for mis-sold car finance if the salesperson failed to present all finance options, adequately explain the details of your contract, and the interest rates charged, make affordability checks or inform you if they would receive a commission.
A mystery shopping exercise conducted by the Financial Conduct Authority, revealed:
These findings mean that if you have bought a car on PCP finance there is a high chance you have a claim.
We are one of the leading claims handlers in the uk and have helped clients claim tens of millions of pounds in compensation. You only pay us a fee from the compensation rewarded – no win, no fee.
The Financial Conduct Authority investigated the motor industry and ruled that the way lenders chose to reward their brokers were harmful to customers who ended up paying more for their car finance.
The use of ‘discretionary commission’, whereby the dealer doesn’t have to disclose what kickbacks they receive from the lender, has now been banned. However, it’s worth noting the FCA’s ban doesn’t prohibit the commission itself.
The difference is that it must be disclosed, making it more transparent. However, the British public has unwittingly been paying secret commissions, within their car finance deals, for years.
Send us a copy of your car finance agreement, which we will treat in confidence, or if you don’t have a copy of your car finance agreement, then just let us know the name of the lender and dealership and we’ll request a copy.
We’ll then review this and advise you if you have a claim. If we accept your case, and you instruct us to act on your behalf, we’ll make a claim against the lender
If we can demonstrate you were mis-sold car finance, then we’ll recover compensation for you.
This depends on the amount of finance taken, the interest rate applied, the commission model used and the length of the repayment term. However, it’s likely to run into thousands of pounds.
Enter your details and one of the team will call you back.
We take your data seriously. See our privacy policy & terms.
Call: 03300 167 333
Email: info@claimssupermarket.com
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