Car finance and PCP (Personal Contract Purchase) agreements have become increasingly popular in recent years. They allow consumers to purchase a car without having to pay the full price upfront. Instead, customers make monthly payments for a fixed term, typically 2-4 years, and at the end of the agreement, they have the option to either return the car, pay a final lump sum, or trade it in for a new model. However, what many consumers are not aware of is that these agreements have been mis-sold, leaving them vulnerable to hidden costs and financial risks. In this blog, we’ll explore the risks and potential pitfalls of mis-sold car finance and PCP agreements.
The Mis-selling Scandal
According to the Financial Conduct Authority (FCA), commission was paid on 95% of PCP and car finance deals. In these circumstances, customers have essentially been paying the commission of the dealer or broker without being aware of it. This is known as hidden commission and is a form of mis-selling. The FCA has recently uncovered industry-wide mis-selling with commissions paid to dealers and brokers without being disclosed to consumers. This means that many consumers have been paying much more for their car finance than they should have done, and they may be entitled to compensation.
No Win, No Fee Compensation Claims
At SortMyCash, we have developed a partnership with Chan Neill Solicitors to provide you with a No Win, No Fee service, so that you can check to see if you have a claim today. The compensation for mis-sold car finance can run into thousands of pounds, including the hidden commission, interest paid, and any other fees. It’s important to know that when arranging finance on your behalf, the car dealer/finance broker should always work in your best interests and give you the best advice. If they have not given you the best advice and have gained financially from this, then you will likely have a claim. Our experts at SortMyCash can guide you through the claims process and help you get the compensation you deserve.
Hidden Costs and Financial Risks
Mis-sold car finance and PCP agreements can leave consumers vulnerable to hidden costs and financial risks. The dealer or broker may not fully explain the Terms & Conditions of the agreement or explore a range of options to find the best finance for the consumer’s situation. In some cases, the salesperson may not explain they would receive a commission on the car finance, or the amount of commission, or the bank/lender did not explain the commission to the consumer prior to the purchase. These are just some of the main reasons why your car finance may have been mis-sold, and there is a high probability that one or more of these reasons will apply to you.
The salesperson’s duty of care is to act in the consumer’s best interest and provide reasonable finance for the purchase of vehicles. However, this doesn’t appear to have been the case, with dealers having the ability to manipulate interest rates on 42% of finance deals. This means that the dealer could put the consumer on a higher interest rate (higher monthly payments) for no other reason than to earn themselves a higher commission. The FCA estimates that 560,000 people have paid over 50% more for car finance than they should have done.
Why Choose SortMyCash?
You are free to pursue a claim yourself, but we would recommend using an expert as this is such a new area. Through SortMyCash and our partner solicitors, Chan Neill Solicitors, we believe you are getting an excellent service, offering you a greater chance of success, and unlike many of our competitors, it is not at an exorbitant rate.
No Win, No Fee Claims with SortMyCash
At SortMyCash, we understand how daunting it can be to pursue a claim for mis-sold car finance or PCP on your own. That’s why we have partnered with Chan Neill Solicitors to provide our customers with a No Win, No Fee service. This means that you won’t have to pay any upfront fees or legal costs, and we’ll only charge you if we win your case.
Our expert team will work tirelessly to ensure that you receive the compensation you deserve, and we’ll keep you updated every step of the way. We believe that everyone should have access to justice, regardless of their financial situation, which is why we offer a low, transparent fee of 30% + VAT. You can trust us to provide you with a fair and affordable service, and we’ll always put your needs first.
Start Your Claim Today
If you think you may have been mis-sold car finance or PCP, don’t wait any longer to start your claim. Our simple online form takes just 30 seconds to complete, and we’ll guide you through the process every step of the way. We’ll ask you a few basic questions about your car finance or PCP agreement, and then we’ll do the rest.
Our team will review your case and advise you on whether we think you have a claim. If we believe that you do, we’ll start the claims process on your behalf, and we’ll keep you informed at every stage of the process. Our aim is to make the process as simple and stress-free as possible, so you can focus on getting the compensation you deserve.
In conclusion, mis-sold car finance and PCP agreements are a significant problem in the UK, with millions of people being overcharged for years. If you think you may have been affected, don’t hesitate to contact SortMyCash today. We’ll provide you with expert advice and a No Win, No Fee service, so you can get the compensation you deserve without any risk. We’re committed to fighting for justice on behalf of our customers, and we won’t stop until you get the result you deserve.