Featured on BBC One’s Northern Justice & Morning Live


Mis-sold PCP Car Finance

Mis-Sold Volkswagen PCP Claims

Quick Guide

  • You may be entitled to claim compensation for hidden commission mis-selling if you bought a Volkswagen car on PCP finance after 1st April 2014.
  • If when you bought the car, commissions to the dealership or salesperson were not clearly explained, then you may have unknowingly entered an unfair Volkswagen PCP agreement.
  • If you have a claim, you can stop the loan and claim a refund for fees and interest. TLW Solicitors work on a no-win no-fee basis, you pay us nothing if your VW claim is unsuccessful.
Feefo logo

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

Did you buy the Volkswagen vehicle on a PCP finance agreement?

What’s the issue with buying a Volkswagen on a PCP finance agreement?

When buying a new or used car, customers often sign up to what is known as a Personal Contract Purchase (PCP) financial plan. Some Volkswagen PCP finance agreements may have been mis-sold by a dealership or their sales teams. If, when signing up to the finance agreement, commissions were not clearly explained to the customer, then this could have unknowingly inflated the price of the PCP agreement. This inflated price is sometimes referred to as a hidden commission.

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 financial plan. This would often happen without the buyer even knowing what commission the sales team received and meant that customers were unfairly paying more.

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 any commission they are getting is. Most customers expect the salesperson or dealership to make 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 for the Volkswagen 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.

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 finance choices.
  • The salesperson did not give you information about any commission that they were getting from the finance company for you signing up to the PCP agreement.
  • You were not told exactly how much commission the dealership and/or the salesperson were receiving from the finance company.

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.

To see if you have a claim and if so, what it might be worth, we will contact the PCP finance company and get all the relevant documents and contracts on your behalf. 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.

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 settle the case, 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 in 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 experienced in taking cases to court if necessary, to ensure that clients get the compensation they are owed.

  • Up!
  • Polo
  • Golf
  • T-Cross
  • T-Roc
  • Tiguan
  • Touareg
  • Passat
  • Touran
  • Sharan

If you bought a Volkswagen 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 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 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.