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Mis-sold PCP Car Finance

Peugeot PCP Claims

Peugeot Claims: Quick Guide

  • Peugeot drivers who used a personal contract purchase (PCP) finance agreement after April 1, 2014, could be entitled to compensation for hidden commissions.
  • Hidden commissions unknowingly inflate the price of a PCP agreement. This may affect the monthly repayments and the final balloon payment.
  • If you entered a Peugeot PCP agreement and the salesperson did not explain the commission they were receiving, you may be able to cancel the agreement and request a refund of interest and the fees.
  • TLW Solicitors can help you with your compensation claim. We work on a no-win, no-fee basis, so if your claim is rejected, you owe nothing.
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Have you bought a new or used Peugeot vehicle since 1st April 2014?

Did you buy a Peugeot on a PCP finance agreement?

Peugeot, the French brand of automobiles is commonly purchased in the UK, using a PCP finance agreement. After an investigation by the FCA, it was found that salespeople in car dealerships may have been improperly inflating the costs of finance agreements in order to earn higher commissions from their lending partners.

A PCP is a personal contract hire. Similar to traditional hire purchases, personal contract purchase (PCP) is a type of vehicle financing for individuals. A PCP is designed so that the customer pays a lower monthly amount over the contract period (typically between 24 and 48 months), leaving a final balloon payment to be made at the conclusion of the agreement.

What is the issue with buying a Peugeot on a PCP finance agreement?

Government-backed City watchdog, the Financial Conduct Authority (FCA) has prohibited the tactic that dealership sales teams may have been using. In this practice, commissions were increased when their customers agreed to more expensive PCP finance agreements when buying the vehicle. Customers were overpaying due to this secret or ‘hidden’ commission.

Because customers may not have been told about the amounts of commission paid to the salespeople, this may have in effect increased the cost of the car and monthly repayments. This is known as a ‘secret’ or ‘hidden commission’. Hidden commissions are a form of financial mis-selling.

Customers who were subject to this practice may be eligible to claim a refund for these fees, together with any interest paid.

  • Instead of providing you with different financial options for your vehicle, a car salesperson assured you that their finance agreement was the “best option”. 
  • You were not told by the car salesperson about any commissions received from your PCP agreement. 
  • The precise commission they received from the lending firm was not disclosed to you.

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 how large the commission they are getting is.

The majority of vehicle buyers assume that the dealer or salesperson would profit from the sale, but they are unaware that they can also be receiving a fee from the financing firm for the PCP finance arrangement. This may mean that the consumer is possibly overpaying for their Peugeot.

The amount of this fee should be explained to the consumer in order to safeguard against any potential conflicts of interest between them and the auto dealer (the dealer proposing loan options based on the amount of commission, rather than what is best for their customer).

If the payment of commission and the exact amount of that commission has not been disclosed, then the customer may be entitled to claim compensation for mis-sold Peugeot PCP car finance for the inflated interest and unknowingly paid fees.

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 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 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. 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.

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.

‘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.

  • 108 Hatchback
  • 208 Hatchback
  • e-208 Hatchback
  • 308 Estate
  • 3008 Estate
  • 408 Fastback
  • 508 Hatchback
  • 508 Estate
  • e-Rifter Estate
  • Rifter Estate
  • Traveller MPV

If you bought a Peugeot car on finance after 1st April 2014 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.

Get in touch with our specialist financial mis-selling lawyers for a free no-obligation discussion about making a claim. Call 0800 169 5925 or complete the ‘callback’ or ‘make a claim online’ form.

It is important to get advice as soon as possible as strict time limits can apply.

Meet Our Team

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.

TLW Solicitors pledge to:

  • Always fight your corner.
  • Explain anything you don't understand.
  • Provide full transparency on our charges.
  • Never ask for any upfront payment.
  • Recover the best compensation we can.
  • Keep your personal information safe.
  • Respond quickly to any queries.