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Mis-Sold Car Finance

If you've purchased a vehicle through car finance, there's a possibility that the finance agreement might have been mis-sold. Discover the potential compensation you may be entitled to – as you could be owed as much as £15,000

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Mis-selling incidents have been identified across all vehicle types, encompassing new and used cars and vans, under various vehicle financing options like personal contract purchase (PCP), hire purchase (HP), contract hire, or a car loan. PCP mis-selling, in particular, has been widespread and tends to yield higher compensation values, given the slower repayment of capital leading to increased interest accrual.


A recent investigation by the Financial Conduct Authority (FCA) unveiled extensive evidence of mis-selling within various vehicle financing options. Unbeknownst to customers, lenders systematically motivated brokers and car dealers to impose higher interest rates on customers, enabling them to receive elevated commissions. As one car dealer openly acknowledged, "frankly, we were getting away with murder. We weren’t treating customers fairly and were, in effect, charging them to earn us money."


The FCA estimated that hundreds of thousands of motorists might have fallen victim to mis-sold finance packages. In some instances, customers could be overcharged by over £1,000 in interest to facilitate higher commission payouts for the dealership. This unethical practice is estimated to cost consumers £300 million annually, according to the FCA.


Reports have exposed the prevalence of secret payments and concealed commissions within the car finance industry, suggesting that your finance deal may have been mis-sold. Given the statutory deadlines, known as limitation periods, it is crucial to act promptly. Start your claim today, and let our professionals guide you through the process.

Was My Car Finance Mis-sold?

There are various reasons why a loan might be mis-sold, making the borrower eligible for a refund, especially in cases of irresponsible lending. Irresponsible lending occurs when the borrower lacks sufficient income to repay the loan along with their basic living expenses and existing loans. Subprime lenders, such as Moneybarn, often fall into this category, allowing claimants to seek a refund for all interest and fees paid on their loan.


If any of the following statements resonate with your experience in car finance, including personal contract purchase (PCP) contracts, you may qualify for compensation:


  • The loan was unaffordable, or the lender failed to conduct proper affordability checks – a Daily Mail investigation revealed PCP deals being offered to people with low incomes or those unemployed.

  •  The car salesperson did not disclose receiving a commission (Hidden Commissions) from the car sale.

  •  The lender/bank did not provide a clear explanation of the commission.

  • The salesperson rushed through the car finance agreement Terms & Conditions.

  • The customer felt pressured into the finance deal and wasn't presented with various options, including a clear explanation of the differences in each product.

  • The salesperson didn't clarify who was financially responsible for vehicle repairs.

  • The salesperson didn't offer the best available interest rate.

  • The salesperson didn't transparently present the interest rates for all loan options and their differences.


If you can't locate the agreement or recall the lender or dealership, just knowing the company to which you made payments is sufficient (found on old bank statements). Due to statutory deadlines, known as limitation periods, it's crucial to act promptly. Begin your claim today, and let our professionals guide you through the process.

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