What Are Mis-Sold Car Finance PCP Claims?

The Financial Conduct Authority (FCA) recently investigated hidden commissions on finance packages for vehicles sold before January 28, 2021. Consumers discovered that their vehicle finance contracts were more expensive due to dealers earning hefty commissions by charging higher interest rates. This practice, known as a ‘discretionary commission arrangement’ (DCA), allowed brokers and car dealers to earn more by increasing the customer’s interest rate. To protect consumers, the FCA banned DCAs in January 2021. Many were unaware of these commissions or that the interest rates were not fixed prices.

Before the ban, DCAs were common and affected up to 40% of car finance deals. As a result, millions of vehicle owners across the UK could have been mis-sold car finance, leading them to pay much more than necessary over time. At PCP Claim Solutions, we strive to ensure those affected receive the compensation they deserve. Contact our specialist car finance team today to find out how much you could be owed.

Can I Make a Car Finance (PCP CLAIM) Claim?

Determining if you’ve been mis-sold car finance can be challenging. You might have been unaware of hidden commissions in your contract or the additional costs associated with your agreement. According to the FCA, you might have been affected by hidden commissions if:

• You bought a car under a finance scheme (such as hire purchase or personal contract purchase) before January 28, 2021.
• You have become aware of a discretionary commission arrangement between your lender and broker.
• You were not aware of the commission paid to the dealership at the time of purchase.
• You were not informed about additional costs you could incur through your finance agreements, such as charges and damages.

Contact PCP Claim Solutions today to learn more and see how we can help you claim the compensation you deserve.