Bought a car on finance between 2007 and 2020?
It’s estimated mis-sold car finance cost UK consumers £300,000,000 per year. Discover your car finance claims eligibility with our free, no-obligation, car finance compensation check and recoup your losses. Submit your HP, PCP and DCA finance claims today!
By signing and submitting this document, you are authorising Car Claim Specialists to write to your finance provider(s) and obtain information relating to your motor finance agreements past and present to check your eligibility for compensation. There is no fee for this check and you are under no obligation to proceed should you have grounds to claim. You are also free to opt out of our services at any point.
If your finance agreement(s) were taken at a previous address, please ensure you enter it by clicking where applicable, failure to do so may result in our check being delayed
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About mis-sold car finance claims
Mis-selling happens when individuals do not receive essential information necessary for making informed decisions. For example, did the contract offered represent good value for money?
Instances that might lead to mis-selling claims include situations where the salesperson, for example, failed to provide comprehensive details about the agreement. Additionally, if they engaged in misleading practices, offered inadequate advice, or, moreover, neglected to inform you about any commissions or interest charges associated with the arrangement (DCAs), such claims are likely to arise.
Check your eligibility by taking our free, no-obligation, car finance compensation check today.
about car claim specialists
expertise you can trust
With a board boasting over 20 years of combined experience in the claims management sector, we expertly facilitate the intricate process of identifying potential HP, PCP & DCA finance claims. Furthermore, we compile and submit fully packaged cases to our Panel Firm of solicitors.
Our operational methodology reflects our commitment to exceptional customer service. Moreover, our claimant experience is simple, streamlined, and transparent. We do the heavy lifting so you don’t have to.
how we process car finance claims
review
We will gather your documentation to confirm if you have HP, PCP or DCA car finance claims.
negotiate
One of our Legal Panel firms will process and negotiate your claim.
compensation
Receive your compensation for the mis-sold PCP or HP car finance.
review
We will gather your documentation to confirm if you have HP or PCP finance claims.
negotiate
One of our Legal Panel firms will process and negotiate your claim.
compensation
Receive your compensation for the mis-sold PCP or HP car finance.
bought a car on finance between 2007 and 2020?
Complete our car finance compensation check to see if you were affected by a Discretionary Commission Arrangement (DCA)
hp & pcp finance claim FAQ's
What is PCP finance?
In short, Personal Contract Purchase (PCP) is effectively a personal loan. It allows drivers to spread the payments for a vehicle over a long period. For example, two or three years. However, unlike a normal personal loan, you won’t be paying off the full value of the car and you won’t necessarily own it at the end of the deal. Unless, you chose to pay the final balloon payment. PCP is one of the more complex financial products available to help you buy a car, consisting of the deposit, the amount you borrow, and the balloon payment.
What is HP finance?
Hire Purchase (HP) is a type of car finance that covers the costs of used or new vehicles. If you find yourself unable to afford a new car upfront, this option enables you to drive away with your desired vehicle without the need to pay a substantial lump sum.
HP allows you to pay for a car in instalments over a set period of time. You’ll typically pay a deposit to release the funds for leasing the car over the agreed term, then pay the lender back over time. At completion, a final one off payment is due. Meaning, you will then own the car outright.
What is a discretionary commission arrangement (DCA)?
The Financial Conduct Authority (FCA) defines a discretionary commission arrangement (DCA) as an agreement between lenders and brokers that allowed brokers to adjust the interest rates offered to customers, often resulting in higher commissions for brokers when interest rates increased. While the FCA banned this practice in 2021, they are now conducting an industry-wide review to determine whether there has been widespread non-compliance with the relevant regulations, potentially leading to financial loss or harm to consumers.
Why do dealers offer PCP and HP finance?
PCP is the most prevalent financial product in the market. Dealers use PCP finance to draw in people who want to change their car every few years.
On the other hand, HP finance is an agreement that gives you the option to own the car at the end of the agreement. This is a fixed cost throughout the term with the Annual Percentage Rate (APR) set before the contract begins.
How has the mis-selling of car finance only now come to light?
A recent Financial Conduct Authority (FCA) investigation discovered widespread evidence of mis-selling on all types of vehicle financing options.
The FCA discovered that brokers were given discretion to adjust interest rates. As a result, when a higher level of interest was charged to the consumer, a larger commission payment would be made to the dealership by the finance provider. It concluded that this scandal may have cost UK consumers an estimated £300,000,000 per year between 2007 and 2020.
Mis-selling was found across all vehicle types. For instance, this includes new and used cars, vans, motorcycles, motor homes, and caravans. Additionally, this issue affected all vehicle financing options, such as personal contract hire (PCP), hire purchase (HP), contract hire, and car loans. Among these options, PCP agreements were the most popular, characterised by lower monthly payments followed by a final lump sum or ‘balloon’ payment Therefore, as PCPs are essentially interest-only loans, interest charges were often higher than anticipated.
In 2021, the FCA banned discretionary commission arrangements (DCAs).
Who Is Eligible to Seek Compensation for Mis sold Car Finance?
If you have acquired a vehicle through PCP or HP financing between 2007-2020 and the financing arrangement was improperly sold to you, you might have grounds to pursue compensation for mis sold car finance.
In short, eligibility for mis-sold HP or PCP finance claims qualify for a number of reasons. They apply to individuals who have encountered situations where the salesperson failed to provide a comprehensive overview of available financing options, inadequately explained the contract’s intricacies, such as interest rates. Additionally, they omitted conducting affordability assessments or neglected to disclose information about their own commission earnings.
Furthermore, mis-sold car finance claims can be initiated under the following circumstances:
- Compensation claims can be lodged for both new and pre-owned vehicles procured via financing.
- Additionally, claims can encompass various types of vehicles, ranging from cars to vans and trucks.
- Agreements that are either ongoing or have concluded are eligible for claims.
- It is possible to file claims for multiple vehicles concurrently.
How long does a claim take?
The timeline for resolving your claim can differ depending on the circumstances. For instance, if the car dealership or finance broker acknowledges their role in the mis-selling, you may expect to receive compensation within a few months. However, if there is a dispute regarding liability, the process might extend to a range of 12 to 18 months. Therefore, engaging an experienced member of our panel to handle your case can expedite the claims process.
How much compensation can I expect to receive should my car finance claims be accepted?
The precise compensation amount will fluctuate and numerous factors must be considered, for example:
- Loan amount: The greater the loan, the greater the owed compensation.
- Agreement Date and term: The more extensive your history of loan payments, the higher the owed compensation.
- Interest rate disparities and the discrepancy between the quoted rate and the appropriate rate.
How much will your service cost me?
Initiating a mis-sold car finance claim won’t entail any upfront costs. Additionally, enquiring with our expert panel comes at no charge. If they beleive their is grouds for a claim, it will be conducted on a No Win, No Fee basis, meaning you won’t face any fees for their time even if the outcome is unfavorable.
Is it necessary to engage the services of a Solicitor or Claims Management Company for the representation of this particular claim?
No, it is not imperative to enlist the assistance of a third-party entity for the pursuit of this claim. Therefore, you retain the right to directly address your concerns and submit a complaint to the responsible party without the need for external representation by a firm or individual.