How Do I Know If I Was Mis-Sold PCP Car Finance?
PCP car finance claims are sweeping the nation and it is likely that if you are a motorist and have purchased a car in the last year 20 years that you will be receiving letters in the post, text messages, emails and cold calls asking you to claim money back on a PCP car finance deal.
To know if you were mis-sold a car finance claim:
- Check your paperwork on previous PCP car finance agreements
- Contact the lender you worked with
- Check your credit report if you are looking for the name of the company or companies
- Speak to a claims management company
Read this full guide on how do I know if I was mis-sold.
Check your documents
If you believe you may have been impacted, start by looking through your original finance agreement. This paperwork should indicate whether a discretionary commission arrangement (DCA) was applied, or outline any other type of commission structure linked to your deal.
If you no longer have access to these documents, you can instead review your credit report, which should help you identify the lender involved in your agreement.
Get in touch with your lender
Since the lender paid the broker on your behalf, they will hold records confirming whether the dealer or intermediary received any extra commission connected to your finance agreement.
Although the Financial Conduct Authority (FCA) has instructed lenders to contact customers who may be eligible, waiting to be contacted could significantly delay your claim, so reaching out yourself may speed up the process.
Consider using a claims management company
Claims management firms use tools to check your eligibility, including check your credit history for any car finance lenders.
A claims company can handle the entire claims process on your behalf. While it’s not a requirement to use one, their experience can be helpful when dealing with the complexities of mis-sold car finance cases.
These services typically offer tailored guidance and operate under FCA fee cap regulations, charging only a percentage of any compensation awarded and typically operate on a work on a no-win, no-fee basis—meaning you only pay if your claim is successful.
More about the PCP car finance redress scheme:
Why was my PCP car finance agreement mis-sold?
During 2007 to 2024, car finance dealers were able to upsell discretionary commission arrangement to inflate interest rates, but ultimately take the added bonus as personal commission. The FCA redress scheme has lawed this unreasonable and is now subject to refund for 12 million agreements during this time period.
Should I use a claims management company to process the refund for me?
Yes, there is a strong case to use a claims management company since they can package and streamline the process which could maximise the chances of your claim being successful and receiving the highest amount possible.
Of course, you may be paying fees of 10-30% in commission for this luxury, so there is also a case to do this yourself and follow set instructions.
Can I make a PCP car finance claim myself?
Yes, you can make a PCP car finance claim yourself by contacting the lender directly and following their step-by-step process, whilst also following instructions by the FCA.
This may take a little more time and admin, but it means that the full compensation could be yours, with recent figures showing around £829 per driver and the average household having 2.5 agreements open.