Any Personal Contract Purchase (PCP) car agreement from dealerships may have included a hidden commission fee paid by the lender finance company. Often unknown to the consumer, this fee inflates the price of the contract. If you have taken out a PCP financial plan since 1st April 2014, you may be able to claim the money from hidden commissions. TLW Solicitors can help you get a refund for PCP mis-selling.
Government-backed watchdog, the Financial Conduct Authority (FCA), has recently banned finance deals in the last year where the car dealers and their sales teams could earn more commission if customers were sold a more expensive PCP finance deal. This would often happen without the buyer even knowing what commission the sales team was getting. This is known as a ‘secret’ or ‘hidden commission’ and meant that customers were unfairly paying more than they should. Many UK drivers are now eligible to make PCP claims for each car contract that may have been subject to mis-selling.
Warning signs of potential customers being mis-sold PCP include:
This is where the car dealer sells you a finance package for the car but does not tell you that they are getting a commission or just how large the commission they are getting is. Most customers expect the salesperson or dealership to make their money on the sale of the car, but they do not realise that they may also be getting a commission from the finance company for the PCP finance agreement that goes with it meaning that the customer is potentially paying more than they should.
Because of the high risk of there being a conflict of interest between the customer and the car dealer (the dealer recommending finance products based on the amount of commission as opposed to what is best for their customer), and to ensure full transparency for their protection, the exact amount of this commission should be disclosed to the customer.
If the payment of commission and the amount of that commission has not been explained, then the customer can claim compensation for mis-sold PCP car finance.
If you have taken out PCP car finance after 1st April 2014 and before 1st January 2021 and you think you may have been mis-sold, then get in touch with one of our specialist lawyers by phone on 0800 169 5925, Request a Callback or Make a Claim Online.
One of our team will then go through your case and explore your options in a free, no-obligation discussion.
We will contact the PCP finance company and get all the relevant documents and contracts on your behalf to see if you have a claim and if so, what it might be worth. We can still investigate your claim even if you no longer have the paperwork for the finance agreement.
Anyone who has taken out a car on PCP finance with any dealership for any manufacturer’s vehicle since 2014 and before 1st January 2021 is very likely to be affected.
Common manufacturers, we work with include:
This depends on many factors including the wording of the finance agreement, the interest rates that were charged, the amount of finance and how long ago the PCP finance agreement was signed. However, you could be entitled to thousands of pounds in compensation.
If you think that you have been mis-sold car finance, get in touch with our mis-selling team and we can discuss your claim and what it might be worth.
This varies from claim to claim. If the dealership and/or the finance company accepts responsibility for the alleged PCP mis-selling and agrees to put things right, then a compensation claim can take just a few months. However, in our experience this is unlikely to happen. The Financial Conduct are carrying out an investigation in the mis-selling of car loans, the outcome of the investigation isn’t going to be known until December 2025, and so settlement of most claims will happen after this date.
There is no limit on the number of contracts you can make a claim for if each PCP finance agreement included hidden commissions.
It will cost you nothing to make an enquiry and once our team has reviewed your potential case and if we feel it suitable, then we will enter into a no-win-no-fee agreement. That means, if the case is unsuccessful, we will not charge for the time we have spent on the case.
Our costs are governed by the Solicitors Regulation Authority. More details of which can be provided to you before you decide if you wish to proceed with a claim.
‘Secret/hidden commission’ car finance mis-selling claims can be very complex. Our team of specialist lawyers has many years’ experience of dealing with a wide range of financial mis-selling cases.
Our lawyers are very familiar with the regulatory framework and the various financial institutions involved in these cases, such as the FCA and FOS. They are also very experienced in taking cases to court, if necessary, to ensure that clients get the compensation they are owed.
If you bought a car on finance after 1st April 2014 and before 1st January 2021 and were not told about the amount of commission that the dealership or salesperson received from the company providing the finance plan, then you may be able to claim compensation for PCP mis-selling.
We are currently considering claims against the following finance providers:
(*We are not considering any claims against Money Barn)
Get in touch with our specialist financial mis-selling lawyers for a free no-obligation discussion about making a claim.
Call 0800 169 5925, email or complete the callback form.
It is important to get advice as soon as possible as strict time limits can apply.
Meet Sarah, who heads up our experienced Mis-Sold PCP Car Finance team.
Sarah and her colleagues are on hand to help with your claim.
