5 min read
Feeling baffled by mis-sold car finance?
If you want to discover whether you’re eligible to make a claim and, if so, how you can claim compensation, you can trust the legal and financial experts at Justizia to be on your side.
At Justizia, we help our customers reclaim what’s rightfully theirs.
Whether you’ve been confused by complex terms, hoodwinked with hidden fees, or left with a bigger bill than expected after undisclosed charges, we’re here to make your life easier.
How does mis-sold car finance work?
Following an investigation carried out by the Financial Conduct Authority (FCA), it came to light that many vehicle owners in the UK had been mis-sold their car finance arrangements through the use of Personal Contract Purchase (PCP) and Hire Purchase (HP) deals.
A significant 40 per cent of these car finance loans were labelled as ‘mis-sold’ as they came with hidden discretionary commission arrangements (DCAs), but why are DCAs an issue?
Well, DCAs encouraged dealers to inflate the interest on the customer’s car finance loan because a high interest rate meant they received a higher commission.
As a result, customers end up unknowingly paying significantly more on their car finance deals to cover this higher interest rate.
In fact, roughly eight out of 10 cars bought through this way before January 28 2021, have overcharged customers so dealers can pocket more commission.
Thankfully, this practice was banned.
Now, growing public awareness of the FCA’s investigations and findings has led to the increase in mis-sold car finance complaints and compensation claims.
How do I know if I was mis-sold car finance?
Unsure whether you’ve been mis-sold a car finance agreement?
If you bought a motor vehicle on finance after April 2007, but before January 28 2021, check today!
Whether you’re simply seeking justice or believe you’re entitled to thousands of pounds of compensation, you’ve nothing to lose!
While your car finance agreement (be it HP or PCP) would need to be looked at in more detail by a legal professional to determine whether you’ve been mis-sold car finance, there are few signs that might mean you’ve paid more than you should have, including:
- You weren’t advised about your other finance options
- You received bad advice about the value of the car at the end of the deal
- You were unaware of the commission the broker or dealer was receiving
- You were unaware of the fees for ending the contract early
- You were misled about the deal’s interest rates
Can’t find a copy of your PCP agreement or concerned that you’ve waited too long to reclaim your hard-earned money?
If you need further assistance finding out whether you’ve been mis-sold a car finance deal, please reach out to Justizia today!
Why not get started today by simply filling in our online form or calling us on 0330 818 3415?
What to do if you’ve been mis-sold car finance
If you believe there’s a strong possibility that you’ve been mis-sold car finance, it’s important to act fast.
First and foremost, you should ensure you have a copy of your car finance agreement as well as the details of your lender and dealership.
This copy could be a paper or digital copy, so it’s worth checking anywhere you might keep physical paperwork as well as your emails.
If you’re struggling to find this information, you should also check your credit report as this will include any financial agreements you’ve entered into in within the past six years.
If your agreement is older than six years and you don’t have your own copy, you may be able to get one from your lender. However, they’re only required to keep a copy of your financial agreement details for six years, so this may not always be possible.
Once you have as many relevant details as you can regarding your car finance agreement, you should contact the dealership or broker that sold you your car finance product. If you’re not happy with their final response, we suggest reaching out for expert legal support.
By giving you access to the right legal and financial professionals, Justizia can help you with any legal problems you might be having with your car finance provider.
Don’t struggle alone with making a claim for compensation, why not check your eligibility today?
How much can you get for mis-sold car finance?
Wondering whether it’s worth making a claim? In the UK, the average payout for a car finance claim is around £1,600!
However, the amount of compensation you could receive will vary depending on the size of your loan.
It’ll also vary based on how much difference there is between the interest rate you were quoted and the rate you should have received.
As a result, some individuals could reclaim up to a massive £10,000 in compensation.
Eager to find out how much you could be entitled to for mis-sold car finance?
Get in touch with Justizia today for quick and easy access to experienced legal professionals.
How can Justizia help?
At Justizia, we aim to make reclaiming your hard-earning money following mis-sold car finance straightforward.
Operating on a no-win, no-fee basis, you have nothing to lose, and potentially, thousands of pounds to gain!
Were you not given any advice about your other finance options?
Or maybe you were intentionally misled about interest rates. Either way, you can trust Justizia to support you with all the financial and legal advice you could need.
To find out how we can make justice more accessible for you or for clear answers to questions like ‘how do I know if I was mis-sold car finance’, why not give us a call on 0330 818 3415?
Simply fill in our form with a few key details to get started!
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