Home / PCP Claims – Mis Sold Car Finance

PCP Claims – Mis Sold Car Finance

If you have bought a new or used car on a finance agreement in the past ten years, you may have been subject to hidden fees that inflated the sales price. If you have been mis sold car finance, the team at Hayes Connor can work with you to help you claim compensation.

A recent investigation carried out by the Financial Conduct Authority (FCA) revealed widespread evidence of mis sold car finance, with consumers receiving poor advice or being intentionally misled about the details of their agreement.

Car finance lenders  incentivised finance brokers and car dealers to sign customers up to expensive Personal Contract Purchase (PCP) deals in order to generate higher commissions. The commissions were often then wrapped up in the Annual Percentage Rate charged for the finance and not disclosed to the customer.

If you believe that you have been mis sold car finance, there are a number of options available to you, including bringing forward a PCP claim to recover the undisclosed commission that you may have paid.

Lenders are legally obligated to precisely inform you of what is involved in a car finance deal so that you can be sure that you are paying for a deal that suits your circumstances and financial position. If they haven’t done that or have intentionally mis sold car finance, compensation may be available

At Hayes Connor, our PCP compensation lawyers are on hand to lend their support if you believe you have been mis sold car finance.

Why work with Hayes Connor?

At Hayes Connor, our expert team have specialist expertise in recovering compensation for our clients and we are ready to instruct anyone who believes that they may have a claim.

We always strive to make the entire claims process as straightforward and stress-free as possible, while also securing you the maximum available compensation. Our legal experts have an excellent track record of securing extremely positive results for our clients, often without the need for court proceedings.

See what our clients say about working with us.

Start a PCP claim today

Think you are entitled to compensation after being mis sold car finance? Use our simple and secure online claim form to inform us of the details of your situation, and our team will get back to you shortly to let you know whether we can help.

To speak to a member of our team about what to do if you believe that you have been mis sold car finance, please call us on 0330 041 5137.

What our clients say

Since Day 1 the feedback from our clients has been fantastic and is a real credit to our team. We are proud of our Excellent rating on Trustpilot and invite you to read some of the recent reviews here:

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How Hayes Connor can help with PCP compensation claims

The team at Hayes Connor have specialist expertise in recovering compensation for our clients and  we are perfectly positioned if you believe that you have been mis sold car finance. After being instructed, we can guide you through any situation where you have been mis sold or misled PCP, including situations where a lender failed to adequately explain how the process works or what your available options were.

Our PCP compensation experts can help with:

  • Advising you on whether you have ground to make a PCP claim
  • Making a claim on your behalf to recover the money you are owed

We are able to offer a free assessment of your case so that you will be able to find out if you are likely to have grounds for a claim before you decide whether to take further action.

We are committed to making the claims process as straightforward and simple as possible, making sure you have one less thing to worry about.

We have an excellent track record of securing positive results for our clients, and we can give you the best possible chance of securing fair compensation for being mis sold car finance.

To have your claim assessed for free, you can use our secure online claim form.

The PCP Claims process

The first step is for us to review the PCP agreement that you signed and understand more about the circumstances leading up to that point. If we believe that you have a claim for mis sold car finance we will contact the lender responsible for potential mis sold PCP on your behalf.

Here, we will outline the situation and the details of the PCP agreement to show that you were mis sold PCP.

Our car finance lawyers will work to demonstrate that the full consequences of being mis sold car finance for you and your loved ones are clearly established, placing an accurate value on the available damages for your claim.

It is often the case that PCP finance claims can be resolved without the need for the Financial Ombudsman Service (FOS) or the courts to intervene. However, if a settlement cannot be reached, it may be necessary to explore these routes in order to secure the PCP compensation you are owed.

PCP Claims FAQs

A Personal Contract Purchase (PCP) finance plan is a finance option used by many people buying new or used cars in the UK.

PCP car finance deals are typically broken down into three key elements:

  • An upfront deposit
  • An agreed number of monthly payments
  • An optional final ‘balloon’ payment

With a PCP agreement, you will not actually be covering the cost of the car itself. This is because cars naturally lose value over time. A PCP car finance pan essentially covers the depreciation experienced during the course of the agreement.

PCP agreements usually last for three to five years. As the final balloon payment is optional, if it is not paid, the car will be returned at the end of the agreement.

When offering a PCP car finance deal, the lender is legally obligated to inform a customer of exactly what is involved in the car finance deal and what they can or cannot do.

The Financial Conduct Authority, carried out a recent investigation, discovering widespread evidence of mis selling on various types of PCP financing options. Unbeknown to many customers buying vehicles, it was found that some lenders have been incentivising brokers and car dealers to charge higher interest rates so that they could then receive higher commissions.

Quite often, customers are not fully informed about the amount of commission paid, meaning that the ‘hidden commission’ was causing them to unfairly pay more money on a PCP car finance deal than they should have.

If you have been mis sold car finance, it may be possible to make a PCP claim.

As a minimum. a successful PCP claim will provide you with compensation that covers the hidden fees which inflated the sales price. There may also be other grounds for recovering additional compensation over and above this.

Bringing forward a PCP claim is something the team at Hayes Connor will be able to support you with.

If you do not believe that the salesperson ran through the options available to you  and talked you through the PCP agreement you signed, you may have grounds for a claim.

If the saleperson did receice a commission but they not tell you about it – or that you would be paying it – then it is very likely that you will have a claim.

We know that it can be difficult to be able to tell if you have been mis sold car finance or whether you have paid the saleperson’s commission. This is because the answers will usually be buried in the fine print of the agreement and may not be immediately obvious.

Our PCP experts will be able review the PCP agreement in question, build up a picture of the events leading up to your signature and deternine whether you have been mis sold car finance. If so, you will be entitled to make a claim.

The time it takes to bring forward a successful PCP claim varies from case to case.

If a finance company accepts responsibility for mis selling PCP a settlement may be negotiated without the need for litigation. If so, the process will be much more straightforward and much quicker. In these scenarios, it may take just a few months for the claim to be resolved.

However, in situations where allegations of PCP car finance irregularities are disputed, the process may take longer.

There are are various factors which are likely to influence the level of compensation you could receive after being mis sold car finance.

Compensation could run from the high hundreds to several thousand pounds but the exact figure will be depend on factors such as the size of the loan and the Annual Percentage Rate charged.

Contact us today to see how much you may be owed.

You will likely still be able to make a PCP claim if you have a loan that is still ongoing and active. The final balloon payment does not necessarily have to have been paid off.

Start your PCP claim today

At Hayes Connor Solicitors, we can help you to claim compensation and steer you through the aftermath of a domestic violence data breach – supporting you through the process and minimising the impact on you as much as possible.

Simply use the link above to start your claim, or you can call us on 0330 041 5137 to discuss your situation.

You can find out more about our expertise and how we handle claims here. To have your claim assessed for free, you can use our secure online claim form. Or to speak to a member of our team, please do not hesitate to give us a call on 0330 041 5137.