Mis-sold Car Finance Agreements
The Financial Conduct Authority (FCA) has conducted investigations into the mis-selling practices of car dealerships, focusing on various finance agreements such as Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements.
During these investigations, the FCA uncovered evidence of unfair practices, including car dealerships failing to provide clear and transparent information to consumers regarding the terms, costs, and risks associated with the finance agreements. In some instances, customers were not adequately informed about the commission or incentive payments received by the dealerships for selling specific finance products. This practice, commonly referred to as "secret" or "hidden commission," resulted in customers paying more than they should have.
The FCA has taken these findings seriously and has taken decisive action against car dealerships involved in mis-selling practices. This has involved imposing fines, mandating firms to compensate affected consumers, and implementing stricter regulations and guidelines to prevent future instances of mis-selling.
Consequently, individuals who have been affected by mis-selling practices may be eligible to file claims for compensation.
You may be eligible to make a claim for compensation if:
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You purchased a motor vehicle on finance prior to 2019
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You were not provided with clear and transparent information about the terms and conditions of the car finance agreement.
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You were not made aware of any additional fees, charges, or costs associated with the finance.
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The car finance agreement was unsuitable for your financial circumstances and needs.
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You were subjected to aggressive or misleading sales tactics to convince you to take the finance.
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The interest rates or monthly payments were not properly explained to you.
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You were not given the opportunity to fully understand the risks and implications of the car finance agreement.
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The car dealer or lender did not conduct proper affordability assessments to ensure you could comfortably afford the repayments.
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You were not informed about alternative finance options that may have been more suitable for you.