Mis Sold Car Finance & PCP Claims
Bought a car since 2007 using finance? You may have been mis-sold and could be owed thousands of pounds in compensation.
With our unmatched experience in this area of law, we explain your rights to reclaiming £1,000’s in compensation. Use our free reclaim tool to find out how much you may be able to claim.
By Consumer Claims Team. Last Updated 27th March 2024.
What Are Mis-sold Car Finance PCP Claims?
A recent Financial Conduct Authority (FCA) investigation discovered widespread evidence of mis-selling on all types of UK car finance agreements.
Mis-selling occurs when the person buying the car has not been presented with all the information necessary to decide whether the contract represented value for money or was financially viable.
You may be able to claim for a mis-sold PCP car finance agreement if the salesperson failed to give you all of the information about your agreement, misled you, provided poor advice, or did not inform you of any commissions or interest being charged as part of the agreement.
The FCA investigation discovered that, unbeknown to customers, lenders systematically incentivised brokers and car dealers to charge their customers higher interest rates so they could receive higher commissions themselves.
As one car dealer openly admits in a recent article, “frankly, we were getting away with murder. We weren’t treating customers fairly and were, in effect, charging them to earn us money.”
"The Financial Conduct Authority (FCA) have said that commission was paid on 95% of UK Car finance agreements. If you weren’t told the exact amount of commission paid then you may have a claim."
Reclaim Mis-sold Car Finance With Bott and Co
As the UK’s leading solicitors in this area of law, we have won several significant cases, including the pivotal test case of Mrs Young vs Black Horse that have opened the doors to thousands of people reclaiming compensation for mis-sold PCP car finance.
Representing thousands of clients, we have successfully won over 90% of mis-sold car finance claims that have gone to trial since January 2022, with the average pay out over £1,600 in compensation.
Who Can Claim PCP Mis-sold Car Finance Compensation?
You may be able to claim for mis-sold car finance if you bought a car through PCP or HP finance since 2007 and the finance agreement was mis-sold.
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.
In addition, mis-sold car finance claims can be made under the following circumstances:
- You can claim for new or second-hand vehicles purchased through finance
- You can claim for all types of vehicles, including cars, vans, trucks
- Claims can be made for agreements that are either still in place or for agreements that have ended.
- You can claim for multiple vehicles at the same time.
How To Check If You Have Been Mis-sold Car Finance
The law states that the burden of proof is on the lender and/or the car dealership to show that they acted legally in all aspects of the process.
Your car finance agreement may have been mis-sold if:
- The car salesperson did not inform you they would receive a commission from the lender for setting up the financial agreement.
- The car salesperson did not inform you of all the finance options available, including explaining the differences and responsibilities of each type of product.
- The car salesperson did not offer the best interest rate available to you.
- The car salesperson did not adequately explain the details of the financial contract they sold to you, including the Terms and Conditions.
- The car salesperson did not conduct adequate affordability checks or talked you into an unaffordable finance agreement.
- The car salesperson used high-pressure sales tactics or did not give you adequate time to consider the agreement.
It’s the lender or car dealership’s responsibility to prove that they did all of these adequately. If they can’t prove they did all of them, you’ll be entitled to claim for mis-sold car finance.
Find Out How Much You Can Claim Now
Just add a few details to our claims checker for us to find your car finance agreements. We’ll then tell you if you can claim and how much you might receive.
Check your car finance agreements now for free.
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