Have you been mis-sold car finance?
You’ve heard about the PPI scandal. But if you bought a car on a Personal Contract Plan, you could be a victim of a new kind of financial mis-selling. The Financial Conduct Authority (FCA) have looked into car finance and estimate that a staggering four in ten of finance agreements are of a type that may have been mis-sold and drivers may be able to claim compensation. The British public have been paying secret commission on their car finance deals for years – without even knowing about it.
What did the Financial Conduct Authority discover?
An investigation by the Financial Conduct Authority (FCA) in 2018 found evidence of widespread mis-selling by car dealers when persuading customers to buy a new car using a Personal Contract Plan (PCP).
The FCA sent mystery shoppers into 122 car dealerships and found that only 11 dealerships confirmed commission will be added to the deal. In addition, only 31% of dealers explained fully to the customer that they do not own the vehicle at the end of the contract unless the balloon payment is paid in full.
In a report published in March 2019, the FCA stated that 28% of car dealerships failed to outline the consequences of missed payments too.
What’s more, some car retailers received commission from lenders which was often linked to the interest rate customers were charged. Some car dealerships could also set the interest rate, this gave them an incentive to sell more expensive credit – going directly against their customers’ best interests. As a result, mis-sold car finance may have cost UK consumers £300,000,000 every year
Were you mis-sold car finance?
Thousands of car owners who bought their new car through Personal Contract Plans (PCP) may be victims of this new mis-selling scandal. Car dealerships have been exploiting the complexity of PCP deals, telling buyers that they are more economical than hire purchase arrangements.
In fact, the mystery shoppers sent out by the FCA reported that:
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Salespeople focused on just one finance product without discussing any alternatives, meaning that customers didn’t have all the information needed to make the right choice for them
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For new car sales, salespeople pushed PCP rather than hire purchase and ignored the customer’s desire to own the vehicle
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The amount of commission received by the dealer or broker was hardly ever mentioned
So when buying your new car did you:
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Totally understand the finance deal being offered to you?
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Have other finance options explained to you?
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Know exactly how much commission the car dealer / finance broker was receiving?
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Understand the consequences of missing finance payment?
If you’re not sure, then you received poor advice. You might well have ended up paying hundreds of pounds more than you needed to, and got a finance deal that was unsuitable for your needs or your budget.
To find out if you’re eligible to receive compensation, contact Hallbrook today and we’ll start the process as quickly as possible. We can help you fight your case to achieve justice and receive the financial redress you deserve.
Mis-sold car finance may have cost UK consumers £300,000,000 every year!
How can Hallbrook help you?
Hallbrook provides unparalleled claims support to people who have been mis-sold financial services. We help them achieve justice and gain the compensation they deserve. We also publish what we’ve learned representing these private investors, to stop other vulnerable people falling victim to these mis-selling scams. This way, we make it possible for anyone to take control of their money and make better-informed decisions. Since 2010 we have successfully recovered over £60 million in compensation and continue to recover millions every year.
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Our fees also benefit from a Fee Cap, which means you could pay less. For more information see our full Terms.
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If you have already claimed for compensation but didn’t receive the amount you’re entitled to, we may be able to appeal on your behalf.
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