Volvo PCP Claims: Mis-Sold Personal Contract Purchase Finance

Have you bought a new or used Volvo car since 1st April 2014?

Did you buy a Volvo car or SUV on a PCP finance agreement?

The Volvo Group is a Swedish multinational manufacturing corporation. Its core activity is the production, distribution and sale of vehicles. Volvo’s XC40 SUV has been named the UK’s best-selling premium SUV, with 25,023 sales in 2020. The brand is one of the fastest-growing premium car brands in the country, according to the Society of Motor Manufacturers and Traders (SMMT). Purchasing a Volvo using a personal contract purchase is a common method used in the UK.

A personal contract purchase (PCP) is a form of hire purchase vehicle finance for individual purchasers. Unlike a traditional hire purchase, where the customer repays the total debt in equal monthly instalments over the term of the agreement, a PCP is structured so that the customer pays a lower monthly amount over the contract period. The customer is the registered keeper and legal owner of the vehicle, whilst the finance company retains an interest in the vehicle.

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

Sales teams at dealerships may have been using a practice that has since recently been banned by the Government-backed watchdog, the Financial Conduct Authority (FCA). This practice involved earning more commission if customers signed up for a more expensive PCP finance agreement.

Customers were often not told about the amounts of commission paid, even though the commission may have in effect increased the cost of the car to the customer. This is known as a ‘secret’ or ‘hidden’ commission and meant customers were paying more than they should.

How do I know if I have been mis-sold a PCP agreement?

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Instead of providing you with different financial options, 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.

What is a hidden commission?

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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 much the commission they are getting is.

The majority of vehicle buyers assume that the dealership 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 Volvo PCP finance arrangement.

The precise 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 Volvo PCP car finance for the inflated interest and unknowingly paid fees.

Volvo PCP Claims FAQs

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What is a secret or 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.

Explain the mis-sold car finance process.

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.

Who is affected by PCP Car Finance mis-selling?

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:

How much compensation can I claim for mis-sold car finance?

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.

How long will my mis-sold car finance claim take?

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.

How many claims can I make?

There is no limit on the number of contracts you can make a claim for if each PCP finance agreement included hidden commissions.

What will it cost to make a mis-sold car finance claim?

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.

What sets TLW Solicitors apart in mis-sold car finance cases?

‘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.

Common Volvo Vehicles Affected by Mis-Sold PCP

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Volvo C40 SUV
Volvo XC40
Volvo XC60 SUV
Volvo XC90
Volvo S60 Saloon
Volvo V60 Estate
Volvo S90 Saloon
Volvo V90 Estate
Volvo EX90 SUV

TLW Solicitors can help

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If you bought a Volvo vehicle 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.