If you’ve taken out a Personal Contract Purchase (PCP) or Hire Purchase (HP) agreement, you might be owed compensation. Many car finance deals included unfair terms, leading to thousands of mis-sold agreements. Knowing your rights and how to claim back what you’re owed is crucial.
Why Many PCP & HP Agreements Were Mis-Sold
Car finance deals often came with hidden commissions that inflated monthly payments. The Financial Conduct Authority (FCA) found that some dealers failed to disclose commission structures. This meant customers paid more than necessary without realising it.
Lenders often used discretionary commission arrangements (DCA), allowing dealers to increase interest rates for higher commissions. The FCA has banned these practices, but past agreements remain in question. If you weren’t informed about commissions, you might have a claim. Understanding the car finance scandal explained by regulators can help clarify why so many agreements were unfair.
How to Check If You Have a Claim
The best way to determine if you’re eligible for a refund is to use a free claim checker. Sites like pcp-claims.org provide an easy way to check if your agreement was mis-sold. You don’t need to pay upfront.
Who Is Eligible to Claim?
If you took out a PCP or HP car finance deal between 2007 and 2021, you may qualify. The key factors include whether you were charged undisclosed commissions and if affordability checks were ignored. Even if you’ve settled the finance, you can still claim.
The FCA estimates millions of UK drivers were affected by unfair car finance deals. Some claimants have already received refunds ranging from £1,000 to £8,000. The final amount depends on the interest overpaid and lender policies.
What Can You Claim Back?
You can claim the excess interest and any fees unfairly charged on your agreement. If you paid early settlement fees that weren’t properly explained, those could also be refunded. Compensation often includes statutory interest, increasing the total payout.
How Long Does the Claim Process Take?
Most claims take between three to six months to process. The time frame depends on the lender’s response and whether the claim needs escalation. Some cases settle quickly, while others require Financial Ombudsman Service (FOS) intervention.
Do You Need a Claims Management Company?
You can submit a claim directly to your lender or use a specialist claims company. Platform like pcp-claims.org handle the process for free unless compensation is awarded. This removes the hassle and ensures you meet all legal requirements.
For those new to this process, following a PCP & HP claims guide can help navigate the steps involved in making a successful claim. Ensuring you have all the necessary details before submitting your claim can speed up the process.
Ending Words
If you’ve had a car finance deal in the last 15 years, checking for mis-selling is worth it. With millions potentially owed compensation, acting now ensures you don’t miss out. Use a free claim checker and get the money you might be entitled to.
You can submit a claim directly to your lender or use a specialist claims company. Platform like pcp-claims.org handle