Mis-sold vehicle finance refers to a situation where consumers are given misleading or incorrect information about the terms, conditions, or suitability of a vehicle finance agreement. This can include factors such as the interest rate, repayment terms, hidden commissions, additional fees, or potential risks associated with the finance agreement or failing to undertake appropriate affordability assessments.

PCP (Personal Contract Purchase) and HP (Hire Purchase) are two common types of vehicle finance: PCP allows you to pay monthly instalments and gives you the option to buy the car at the end of the agreement or return it. HP involves paying fixed monthly instalments over a specific period until you fully own the car. Other types of vehicle finance include leasing, where you essentially rent the vehicle, and personal loans, where you borrow money to purchase the car outright.

Yes, you can claim against PCP and HP.

The potential compensation options for mis-sold vehicle finance may include: Receiving a refund or reduction of excessive charges, fees, or interest payments. Obtaining compensation for any financial losses or additional costs incurred due to the mis-selling. Cancelling the finance agreement or having its terms amended to reflect the correct information. Receiving compensation for distress, inconvenience, or damage caused by the mis-selling.

Mis-selling practices in vehicle finance can include: Providing incorrect or misleading information about the interest rate or repayment terms. Failing to disclose all fees, charges, or additional costs associated with the finance agreement. Pressuring or coercing customers into signing the agreement without proper understanding. Selling unnecessary add-on products or services without clear explanation or consent. Failing to undertake appropriate affordability assessments.

To protect yourself from future mis-selling practices in vehicle finance, consider the following steps: Research and gather information about the finance products and agreements before making a decision. Read and understand the terms and conditions, including interest rates, fees, and any potential risks or penalties. Ask questions and seek clarification from the finance company before signing any agreements. Keep all documentation and correspondence related to your vehicle finance for future reference. If in doubt, consult a financial advisor or seek professional advice before committing to a finance agreement.

The most common outcome is some form of financial redress. This could be thousands of pounds.

You may have been a victim of mis-sold vehicle finance if you experienced any of the following: You were not provided with complete and accurate information about the finance agreement. The terms and conditions of the agreement were not properly explained to you. The finance company did not conduct a thorough assessment of your financial situation to ensure affordability. You were pushed or coerced into signing the agreement without sufficient time to review it. The finance company failed to disclose important details, such as fees, charges, or risks associated with the finance agreement. Your broker or dealership received a hidden commission.

The FCA has found that there were hidden discretionary commission arrangements on car finance deals. This is where lenders allowed brokers and car dealerships to up the interest you were charged and in turn, they increased their commission. Therefore, you would have overpaid without even knowing. Get in touch today to find out if this could be you.

Six years from the date on which the cause of action happened (i.e. the mis-sale) or 3 years from the date of knowledge (i.e. the date you became aware or ought to have become aware you suffered a loss).

As a consumer, you have rights regarding mis-sold vehicle finance, including: The right to receive accurate and complete information about the finance agreement. The right to be treated fairly and not be subjected to misleading or deceptive practices. The right to seek compensation if you have been a victim of mis-selling. The right to escalate your complaint to regulatory bodies or organisations like the Financial Ombudsman Service.

If mis-selling is proven, potential consequences for the finance company may include: Being required to provide compensation or refunds to affected customers. Facing fines or penalties imposed by regulatory authorities. Reputation damage and loss of customer trust. Changes to their practices or regulations to prevent future mis-selling

Common signs of mis-sold vehicle finance include: High-pressure sales tactics or aggressive marketing strategies used to persuade you to sign the agreement. Incomplete or inaccurate information provided about the interest rate, repayment terms, or additional fees. Hidden charges, commissions or costs that were not disclosed upfront. Being sold unnecessary add-on products or services without your knowledge or consent. Discovering that the terms and conditions of the agreement were different from what you were initially told or understood. Failing to undertake appropriate affordability assessments.

To claim back mis-sold vehicle finance, follow these steps: Gather all relevant documents, including the finance agreement, correspondence, and any other evidence related to the mis-selling. You can claim for free directly, however, you may wish to seek assistance from a claims management company or law firm. Work with the claims management company or law firm to prepare and submit your claim, providing all necessary evidence to support your case. Monitor the progress of your claim and follow any additional instructions or requirements provided. If your claim is successful, you may be entitled to compensation or other appropriate remedies.

To support your claim for mis-sold vehicle finance, gather documents such as: Your vehicle finance agreement or contract Copy of your ID If you don’t have a copy of your agreement, don’t worry we should be able to retrieve this from the lender.

The duration of the mis-sold vehicle finance claims process can vary depending on factors such as the complexity of the case and the cooperation of the involved parties. Working with a claims management company can help streamline the process for you.

If your case is taken on by a law firm, they will charge a percentage and that varies from law firm to law firm. They will provide you with their terms and conditions and detail their fees to you for you to accept before taking on your case. If your case is taken on by us, you can find full details of our fees in our terms and conditions listed on the website.

All we need is the finance agreement or your permission to request it from the lender. Some lenders require a copy of your ID. If that’s the case we will request it.

We’ll keep you updated on the progress, communicating material updates to you within 10 working days and providing an update at least every six months. If you are placed with a law firm, you’ll be provided all the relevant contact information. They’ll also regularly communicate with you with any updates to your case.

This means we feel your case doesn’t meet the criteria of our panel of solicitors. However, not all hope is lost. You still might have a case under certain circumstances that we can put forward to the lender. If it’s rejected by them, we may be able to take it to FOS (the Financial Ombudsman Service). This isn’t always the case, if you don’t meet the criteria for a case to the lender or FOS then unfortunately, we are unable to help you and will inform you.

Email: Search your email account for your lender, broker, dealership, or even the make and model of the car. Paper Copy: Most financial institutions would have sent a hardcopy version of their email as a follow-up.

Depending on your original contract, your compensation may vary, but most PCP agreement-related claims will be worth several thousand pounds.

At the top of your agreement is the wording "Agreement governed by the Consumer Credit Act 1974." Your information, including your address and phone number, will be scattered throughout your Finance Agreement. The finance information pertaining to your deal is also included in the Finance Agreement. APR% Interest expenses, The total amount due, A monthly fee and Contract duration, typically measured in months. The signature and date part of your finance agreement will be there. This is found near the bottom of the agreement.

Car lending firms are required to retain track of all customer transactions and dealings for a minimum of six years. We will be able to help you request copies of these documents. If your Finance Deal was paid off more than six years ago, there might not be any documents available for you. There have been instances where allegations have been made against incidences of mis-selling from more than 20 years ago, frequently without documentation.

The more information you can recall about your contract, the more quickly the financial firm will be able to find you and cross-reference you with their systems. Additionally, this will assist in eliminating requests for additional information.

There is no impact on your credit rating from a potential claim.

The Financial Ombudsman Service (FOS) is an independent organisation that helps resolve disputes between consumers and finance companies, including those related to mis-sold vehicle finance. If you are unable to reach a satisfactory resolution with the finance company directly, you may be able to escalate your complaint to the FOS. They will review the case, assess the evidence, and make a fair and impartial decision. If the decision is in your favour, the finance company may be required to provide compensation or take appropriate actions to rectify the situation.

Most people by now who may qualify may already have paid off their car finance. You can still claim.