Mis-sold Motor
Finance (PCP)
Following the Financial Conduct Authority’s (FCA) review into ‘discretionary commission arrangements’ (DCAs) in the motor finance sector, which found consumers had not been properly informed of commission arrangements, the FCA has begun consulting on a proposed redress scheme.
This aims to ensure consumers are properly and fairly compensated. The FCA’s concerns centred on the use of DCAs contained in PCP or Hire Contracts which enabled brokers or dealerships to receive a commission. This in turn incentivised brokers to steer consumers towards finance agreements with higher interest rates, inflated to include their commission without clear justification. As a result, the majority of finance agreements taken out between April 2007 and November 2024 could have been mis-sold.
Commission isn’t always prohibited, but it is important that consumers are provided with clear information when entering motor finance contracts such as if a commission is payable and if so, how much this commission amounts to. If you have been misled or had information withheld in a PCP or Hire Purchase Agreement, you may have been mis-sold motor finance and could be eligible to claim.
Why join the claim?
The FCA estimates that around 14.2 million consumers will qualify for compensation if the commission paid on their motor finance agreement is found to have been ‘unfair’, following the important decision in the Supreme Court’s Johnson case.
At Charles Lyndon, we believe in empowering consumers and ensuring their protection, especially when it comes to mis-sold motor finance. We’re committed to making it easy for anyone affected to claim a refund, without the hassle. That’s why we’ve streamlined the process to check eligibility and join the claim – simply complete a short questionnaire, and we’ll let you know if you have a claim.
This is a ‘no win, no fee claim’. This means that if you do not receive any compensation for your claim, you won’t have to pay us anything.
How do I know if I’ve been mis-sold car finance?
We represent consumers who have been affected by mis-sold motor finance in relation to vehicles (cars, vans, motorbikes, caravans) purchased via Personal Contract Purchase agreements (PCP) or Hire Purchase Agreements.
The FCA has indicated that you may be eligible for compensation under the proposed redress scheme if:
- You took out a motor finance agreement (such as a Hire Purchase or PCP) between 6 April 2007 and 1 November 2024
You were not sufficiently told of one of the following:
- A discretionary commission arrangement
- High commission (where the commission is equal to or greater than 35% of the total cost of credit and 10% of the loan)
- Contractual ties that gave a lender exclusivity or a right of first refusal
If this situation applied to you, you may qualify for compensation under the FCA’s proposed redress scheme.
We’re here to provide the legal assistance you need when you need it most.