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PCP Claims against Mis-Sold Car Finance. Find Out if You Have a Compensation Claim.

If you bought a new or used vehicle in the last 10 years on a finance agreement then you may be entitled to claim compensation due to hidden fees that inflated the sales price. If these fees weren’t made clear to you, you may be eligible to make a claim now.

What is a mis-sold car finance agreement? 

Most people buying new or used cars sign up to what is known as a Personal Contract Purchase (PCP) financial plan. It has been common practice for the salesperson to receive a large commission from the lender finance company in return for signing the customer up to the PCP finance agreement. Quite often customers are not told about the amounts of commission paid. A commission that unknowingly increases the cost of their car.

Government-backed watchdog, the Financial Conduct Authority (FCA), has recently banned car finance deals where the car dealers and their sales teams could earn more commission if customers were signed up to a more expensive PCP. 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. Some people now have unaffordable car finance bills due to the pandemic.

If you bought a new or used car on a PCP finance scheme, you may be eligible for compensation due to a form of financial mis-selling, hidden commission. 

What is a secret/hidden commission?

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.

TLW Solicitors can help

If you bought a car on finance 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.

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 call back form below.

Time limits can apply and so anyone wishing to bring a claim should do so without delay.

For added TLC, think TLW Solicitors.

Mis-sold PCP Car Finance Claims FAQs

Warning signs of potential car finance mis-selling include:

  • The car salesperson told you their finance was the ‘best option’ rather than encouraging you to shop around or giving you a range of alternative options.
  • The salesperson did not give you information about any commission that they were getting from the finance company for you signing up to the agreement.
  • You were not told exactly how much commission they would get from the finance company.

If you think that your PCP car finance may have been mis-sold, then get in touch with one of our specialist lawyers by phone on 0800 169 5925, by email to, or use the call back form below. 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.

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. If the allegations are disputed, then the claim could go to the Financial Ombudsman Service (FOS), where the case could take anywhere between 12 to 18 months to conclude.

If starting court proceedings is the best option, then that process again could take somewhere between 12 and 18 months.

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.

‘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.

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