Have you been
mis-sold a car finance package?
An investigation by the Financial Conduct Authority found that 95% of the motor finance agreements they sampled were of a type that could have been mis-sold. Thousands could be in line for compensation. Are you?
How does it work?
Speak to an expert
Contact us and one of our experts will be in touch to discuss the merits of your claim.
We'll represent you
We handle your claim from start to finish and will represent you when dealing with the firm or Financial Ombudsman Service (FOS)
On successful completion of your claim, we will send you the compensation minus our fee
Bought a car on finance in the last ten years?
If so, your car finance agreement might have been mis-sold to you and you could be in line for thousands of pounds in compensation.
What did the Financial Conduct Authority discover?
A recent investigation by the Financial Conduct Authority (FCA) 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
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:
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
For new car sales, salespeople pushed PCP rather than hire purchase and ignored the customer’s desire to own the vehicle
The amount of commission received by the dealer or broker was hardly ever mentioned
So when buying your new car did you:
Totally understand the finance deal being offered to you?
Have other finance options explained to you?
Know exactly how much commission the car dealer / finance broker was receiving?
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.
Full details of our terms of engagement, including the fee structure can be found here.
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Car Finance Claims is a trading name of Hallbrook Partners Ltd. Hallbrook Partners Ltd is authorised and regulated by the Financial Conduct Authority (FRN:837713) as a Claims Management Company. You do not need to use any third party to present a claim to the firm, The Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS). You can make your own representation to them and their services are free. ©2008-2022 Hallbrook Partners Ltd. All rights reserved.