Mis-Sold Car Finance Claims
Do you suspect you may have been overcharged or misled when taking out a car finance deal?
Car finance agreements can be complex, and if you’ve been misled into a deal with unfair terms, you could be paying much more than necessary. Many people discover too late that they’ve been mis-sold car finance, resulting in financial strain and frustration. If this sounds familiar, the good news is that you may be entitled to compensation.
How to Identify if You’ve Been Mis-sold Car Finance
It can be challenging to know if you have been mis-sold car finance. You might have been mis-sold a PCP or HP finance agreement if any of the following conditions apply:
- You bought a car under a finance scheme (such as PCP or HP) before 28 January 2021.
- A discretionary commission arrangement existed between your lender and broker.
- You were not aware of the commission being made by the dealership.
- You were not informed of additional costs, such as charges for damages.
- If any of these situations apply to you, or if you felt pressured into taking out car finance, you may be eligible to make a claim.
If you’re not comfortable making complaints or you simply don’t have the time, as regulated solicitors, we are here to help you understand your rights, work out how much money you could be due back and pursue a claim against the lender or broker involved on your behalf.
Contact us today to find out how we can help you claim compensation for mis-sold car finance
Mis-Sold Car Finance Claims FAQs:
What is a mis-sold car finance claim?
A mis-sold car finance claim involves seeking compensation for inflated interest charges and hidden commissions relating to Personal Contract Purchase or Vehicle Hir Purchase agreements.
How do I know if my car finance was mis-sold?
If your interest rate was above the average interest rate at the time, if your income and affordability were not properly taken into account, if there is no mention of commissions on your agreement, you may have been mis-sold.
Who can make a mis-sold car finance claim?
Anyone who has been misled or overcharged in a car finance agreement may be eligible to claim compensation.
What compensation can I expect from a mis-sold car finance claim?
Compensation may include a refund of overpaid interest, fees, and possibly the cancellation of the finance agreement.
How long do I have to make a mis-sold car finance claim?
Typically, you have six years from the date of the agreement however you can argue 3 years from point of knowledge. Generally speaking we will investigate any agreements which were active within the last 10 years.
What is the process for making a mis-sold car finance claim?
The process involves an initial consultation to assess your claim, collecting and reviewing your credit agreements and establishing how long you had the agreements so we can vale your claim. Then, if we believe there are grounds to pursue a claim on your behalf we will submit a claim with your lender and where necessary escalate via the Financial Ombudsman or the Courts.
Common Issues in Car Finance:
Undisclosed or Hidden Commissions:
If the dealership did not inform you about the commission they would receive from the lender.
Inflated Interest Rates:
If you were charged a higher interest rate to increase the dealership’s commission.
Lack of Information on Finance Options:
If the salesperson did not adequately explain all available finance options, interest rates, and associated costs.
Affordability Checks:
If the dealership did not conduct proper affordability checks or pressured you into an unaffordable agreement.
Contact us today for an exploratory call
Many of the practices in car finance claims are also relevant to irresponsible lending.
Have you found yourself struggling to repay a loan, credit card, finance agreement, catalogue or even a doorstep loan?
